Emigrated and selling your house? Beware of withholding taxes
Many South Africans who simultaneously emigrate and cease to be South African tax residents are faced with a situation where the sale of a fixed property has not been finalised by the time they cease to be tax residents. This may result in the unintended consequence of them becoming a non-resident seller of immovable property in South Africa. In terms of South African tax laws, any purchaser who must pay any amount exceeding R2 million to any other person who is not a resident (or to any other person for, or on behalf of, that seller), is required to withhold an amount equal to 7,5% of the amount payable if the seller is a natural person (known as a withholding tax). This is mandated in respect of the disposal by the seller of any immovable property in the Republic. The withholding mechanism essentially acts as pre-payment in respect of any capital gains tax exposure in South Africa. A purchaser is personally liable if they know or should reasonably have known that the seller is a non-resident, which is often the case in scenarios such as described above. If the amount is in fact withheld, the purchaser must pay the amount to SARS before or on the date on which payment would have been made. If an estate agent or conveyancer has assisted in the disposal of property, a purchaser will not be held personally liable if they were not notified of the seller’s non-resident status by that estate agent or conveyancer. If an estate agent or conveyancer should reasonably have known that the seller is a non-resident and fails to notify the purchaser, the failing estate agent or conveyancer is jointly and severally liable for the payment of the amount which the purchaser is required to withhold and pay to the Commissioner. Yet, this amount is limited to the sum of remuneration or other payment in respect of the services rendered in connection with the disposal of immovable property by the seller, or the registration of transfer, whichever applies. An application may, however, be made for a directive that no amount be reduced or withheld by the purchaser if the actual liability of the seller in respect of tax, at the time of the disposal of the immovable property, is less than the amount arrived at by applying the percentage of 7,5%. To request a tax directive for a lower or zero rate of tax to be withheld, the seller must complete an NR03 form and submit it together with the offer to purchase, tax calculation and supporting documentation to nres@sars.gov.za or use one of the other submission methods described on the form. South African taxpayers who plan on emigrating should actively manage this process to ensure that properties are disposed of before ceasing tax residency or ensure that they adhere to the requirements of withholding taxes. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
What tenants need to know to protect their rights
Must my residential lease agreement be in writing? It is currently not a requirement for a residential lease agreement to be in writing – a verbal agreement where the rent and rented property is identified is recognized by South African common law and is just as valid as a written agreement. This may, however, not remain the position for much longer. The Rental Housing Amendment Act, which is not in operation yet, requires that all lease agreements should be in writing, and places the onus of ensuring compliance herewith on the Landlord. A lease agreement must, however, be reduced to writing if the tenants requests this from the landlord. As a rule, it is preferable to enter into a written lease agreement, as it brings a measure of certainty regarding the contractual terms, rights, and duties. Verbal lease agreements often lead to “he-said-she-said” disputes and conflict. Leases can also be formed by conduct alone. For example, if you as a tenant pay the owner of the property a monthly amount and they accept the money on the shared understanding that the payment is paid in exchange for the tenant being allowed to live in the rented property, then there is a lease agreement between the parties. Such an agreement can easily lead to conflict when one of the parties unilaterally change their conduct by, for example, paying a lesser monthly amount or sending an electricity bill to the tenant where the owner had always paid it in the past. How long can my lease endure? A fixed-term lease may endure for a maximation period of 24 months in terms of the Consumer Protection Act. This restriction only applies to natural persons. It may, however, be possible for a lease to endure for a longer period (as stipulated in the lease agreement) if the parties can show that there is a demonstratable financial benefit to the lessee. In what condition must the lease premises be when I move in? The Landlord must make the premises available for occupation in a condition reasonably fit for the purpose for which it was let, namely human habitation. The general state of the property should be well-documented during the ingoing inspections by listing and taking photographs of any defects. It is advisable for the tenant to view and inspect the premises before signing the lease agreement, to ensure that the premises are in a good and safe condition. Can I sublet the lease premises? This will depend on the agreement. If there is no clause in the written lease agreement making provision for Subletting, a lessee will be entitled to sublet the property without the Landlords consent. The latter is qualified in that the proposed sublessee must not be a person to whom the original lessor could reasonably object. If the lease does make provision for Subletting, the provisions of the lease agreement must be followed. What can I do if my landlord does not keep up their side of the bargain? The Landlord is bound to the terms and conditions of the lease just like the tenant is. The Landlord’s duties in terms of the lease can therefore be enforced in various ways. If the dispute cannot be resolved on an informal basis, the first port of call will be the lease agreement. The written lease agreement may make provision for disputes and the steps to be taken during a dispute. In the absence of such a clause, the tenant can lodge a complaint with the Rental Housing Tribunal. The Rental Housing Tribunal resolves complaints through dispute resolution mechanisms such as mediation and arbitration. The parties can also approach their attorneys for legal advice. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Have you outgrown your current home?
Knowing when to move is not always as straight forward as one might think. At times, the need for a change is apparent and unavoidable, but other times, it grows over time and may even go unnoticed. Let’s have a look at a few of the biggest indications that it might be time to move house. Growing pains A home should be a place where you (and your family, if you have one) should feel comfortable. Feeling cramped in an apartment or house that has simply grown too small over the years is not ideal. Whether it comes with the accumulation of possessions (from books to art to knick-knacks) or additions to the household (from human kids or those of the furry variety), homes have a tendency to start splitting at the seams when one’s life simply outgrows its four walls. The same goes for when your house just begins to feel too big. For many, this can happen after children have left the coop and moved into their own living spaces. However, this can also happen simply due to a personality change, when the walk between the kitchen and the living room just doesn’t feel worth the effort anymore as the years go by. A home that feels too large is as detrimental to comfort as one that’s too small. Digging into your wallet A big indicator that it may be time to move is when the costs of upkeep simply don’t fit in your budget anymore. From older properties that require more maintenance as the years go by to first-time homeowners who simply didn’t bargain on having to fix their own burst piping, the costs of property upkeep can sometimes catch us off guard. When your home begins to feel like a money pit into which all your money is disappearing, you won’t be able to truly enjoy the experience. Another financial factor that influences your satisfaction with your home could be the hours-long commute you face every day. Living a few kilometres away from work is unfortunately something that many people have to face in the scarce job market. But even so, when the commute is taking away from your appreciation of your home, it may be time to look for something closer to your place of work. The comforts of home Homes are there to be lived in. Our homes should be shaped to our lives, evolving as our lives change. Sometimes, though, our homes simply can’t evolve with us anymore. From new pets, hobbies, work, school, children, and radical dreams such as building your own home, there are many occurrences that can pop up in your life that may be incompatible with where you live right now. Your home may also hold too many memories of events in your life that you’re trying to move on from, such as the loss of a loved one. In these scenarios, finding a new home may also be the best way to find closure and move to a new chapter in your life. The most important part of any home is the fact that you need to feel at home — if you don’t, it’s time for you to start looking for one where you do feel at home. When it’s time to start the search, get in touch with your trusted estate agent to help you find the home that’s perfect for you. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Ensuring the well-being of the community
Finding the right home is not only about finding an architectural structure that meets your requirements (three bedrooms, sun in the afternoon, a yard for the dogs, access control for the kids, etc.). The search is as much about finding a community you want to become a part of. For many residents, the community that surrounds them is governed by an entity known as a homeowners’ association (HOA). HOAs are created in full title or freehold housing establishments and are, at their core, responsible for the wellbeing of a residential area and the community that exists within its boundaries. An HOA will fall into one of two categories: a non-profit company or a common law association. When registered as a non-profit company, the HOA will be governed by the Companies Act and must appoint directors to manage its affairs. A common law association, on the other hand, is created informally and offers more leniency in its management, which is overseen by trustees instead of directors. While the formation of a common law association is indeed simpler, is does lack the security, accountability, and clout found in a registered non-profit company. The responsibilities of the HOA include ensuring the upkeep of infrastructure and the creation of rules that ensure a harmonious living environment. The main purpose of these rules are to create a community that values the lifestyles and aesthetic preferences of the homeowners that reside within it and to create a sense of harmony. It is important for interested homeowners to familiarise themselves with the restrictions of the Memorandum of Incorporation (MOI) to ensure that they are comfortable with adhering to rules. The rules created by the HOA are contained in its MOI, which should be made available to all new homeowners who move into the area. The rules of an HOA can include items such as quiet hours and regulate parking on sidewalks but can also include items that promote uniformity, such as what colour the exterior of a property may be painted and what flora may be planted in publicly visible areas. When moving into a residential area run by an HOA, homeowners are required to become members of the HOA and will usually be required to pay an HOA fee. These fees primarily go towards the upkeep of the community’s infrastructure, including the maintenance of lawns and common areas, such as play areas and parks. An aspect that is often overlooked when considering the scope of the HOA’s role, is the promotion of community building. Community activities and social events, such as yoga classes, book clubs, and even the classic braai, should be arranged by HOAs to bring the community together. HOAs can also promote activities such as recycling and encourage more environmentally conscious behaviour. It’s clear that homeowners’ associations can play a vital role in the creation and wellbeing of communities when approached correctly. If you want to learn more about the creation of a homeowners’ association or have questions regarding the one you are a member of, get in touch with one of our professional property practitioners to assist you. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
How will the POPI Act affect the real estate industry?
On 1 July 2020, the enactment of the Protection of Personal Information Act (POPI Act) commenced, which will come into full effect on 1 July 2021. As its name states, the POPI Act aims to promote the safeguarding of personal information by putting in place the necessary regulations and legislation needed to realise this. Since its acceptance into parliament on 19 November 2013, the media has been flooded with the scope of the Act and how it will affect those who work with personal information. One industry that should not be overlooked during this time of preparation, is the real estate industry. Personal information has always been a vital part of the real estate industry, and as such, the industry comprises various responsible parties that fall within the scope of the POPI Act. Estate agents, for one, use the data of their clients to better equip them in the search for their clients’ perfect homes, discerning the needs from the data. They also use this information to complete documentation such as lease agreements, FICA compliance affidavits, bond approvals, mortgage bond applications, and transfer deeds. So, it makes sense that estate agents must have access to as much personal information as possible. Conveyancers, who also work with the personal information of clients, often receive sensitive data from buyers, sellers, estate agents, insurers, auditors, homeowners’ associations and financial institutions. This information is regularly passed on to governmental bodies such as SARS, deeds offices and municipalities. As such, it is clear that the effect of the POPI Act will be unavoidable on the real estate market. What are Responsible Parties? Simply put, a responsible party is anyone who is responsible for the processing of personal information, whether it be in the collection, safekeeping, or destruction of that information. They must ensure the integrity of every step taken during the processing of personal information, and must ensure that the guidelines and regulations of the POPI Act are always adhered to. As part of their duties, responsible parties must put in place the necessary measures that safeguard information against any possible internal or external risks, and regularly update these safeguards to ensure up-to-date security. What are Data Subjects? Data subjects are essentially any person whose personal information is collected or kept by the responsible parties. The POPI Act includes a non-exhaustive list of exactly what is considered personal information, which responsible parties must familiarise themselves with. The Act also includes the specific rights of data subjects, which aim to protect the personal information of all data subjects. How will the Real Estate Industry be Affected? The first step towards POPIA compliance may be the easiest. Neither estate agents nor conveyancers may share a client’s information or pass it on to another organisation or body without the data subject’s written approval. This is especially important as there are various role-players involved in a property search and its subsequent sale. Estate agents will also not be able to hand over the information of tenants and interested buyers to landlords and sellers without the necessary policies having been set up and permissions gained. Another big change will come in the way estate agencies conduct their marketing. From newsletters and campaigns to special offers and latest listings, agencies and agents will have to obtain the necessary permissions to continue with such communications. For many who receive such unwanted communication, this is a welcome change – one less “spam” email you have to delete before even opening it. But for those who benefit from such communications, the additional steps that need to be taken to ensure that they continue to receive the latest news and developments is vital. The most important part is, the POPI Act puts the decision of what information is given out back in the hands of the individual to whom the information belongs. Whatever way you look at it, that’s something good. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Make the property transfer easy by picking the right conveyancer
Since property transfers are some of the highest-value transactions that you may make in your lifetime, it naturally follows that you need to ensure that you don’t let your money go to waste – especially when choosing someone to handle the process for you. Choosing the right conveyancing attorney can save you a lot of headaches down the road. As COVID-19 hit the shores of South Africa, there was already quite a clear indication of what the medium-term future might hold. Consumer spending dropped across the globe, and investors, in panic, were withdrawing the value from their financial assets. Over the stretch of 2020 in South Africa, this led to the need to stimulate the economy by lowering interest rates. In the middle of it all, the property market stands as a mirror image of the surrounding economy, where conveyancing attorneys are standing on the frontlines, as if fighting in a war. The property market remains an active market right now because those who were adversely affected by the effects of the pandemic are selling off property to make ends meet, while for those who weren’t as adversely affected, there has never been a better time to buy property with sustained low interest rates on property bonds. In the middle of the storm of the active property market are the conveyancers who are doing all the work to deal with the legal aspects of the property transfers taking place. This is why, for the buyers and sellers at the end points, the right conveyancer can mean a world of difference and should not be chosen lightly. A conveyancing attorney is someone who helps both the buyer and seller navigate the terms of transfer of a property that will have consequences far into the future. With these long-term stakes, buying property is a big commitment. Perhaps the only greater commitment you can make in life is getting married. And just as much as you wouldn’t choose just any marriage officer to officiate your wedding, it is also inadvisable to pick your conveyancer at a whim. What, then, are the qualities you need to look out for in a conveyancing attorney? Knowledge and Expertise A Conveyancing attorney, in the simplest of terms, is a lawyer who handles all the legal processes related to the transfer of a property on behalf of the buyer and seller. Since property transfers are high-value agreements, it is necessary that you pick a conveyancing attorney that knows the ins and outs of property law as one misstep can seriously delay the transfer process. Conveyancers are qualified attorneys that have undergone additional training after obtaining their law degree and being admitted as an attorney in accordance with the terms of the Legal Practice Act. However, not all attorneys are created equally. So, choose one that is confident in their ability to handle all the legal matters and that has a track record to boot. Some property transfers might also require specialised knowledge related to restrictions and conditions to the use of the property (such as servitudes). A good conveyancer will be able to point out anything that could become a cause for concern. Accessibility and Transparency When it comes to legal matters, staying up to date is key as things can change quickly and new issues can rapidly pop up. A good conveyancer will be accessible to you and inform you of any new developments in the transfer process. Not only should they keep you up to speed, but should also be available to answer any questions you might have regarding the process. Poor communication is not a good look on a conveyancer. Make sure that your conveyancer is someone that will explain the processes involved in the property transfer as simply as they can. Approachability and trustworthiness A Good conveyancing attorney acts in the interests of both the buyer and the seller. Although the seller has prerogative when appointing a conveyancer for the transfer of their property, the buyer shouldn’t be left to bear the consequences of a poor decision. Therefore, the buyer and seller must find the conveyancer approachable and helpful when required. A conveyancer that acts in the interest of both parties not only smooths the process of the transfer, but also helps to make the entire process an amicable experience. The value of choosing the right conveyancing attorney cannot be overlooked. Peace-of-mind and clarity can go a long way towards making a house a home, while satisfying the seller’s needs as well. Reference list: https://businesstech.co.za/news/wealth/125583/conveyancing-fees-this-is-what-you-are-paying-for/ Conveyancing: Conventional Deeds (Act 47/1937): Guideline of Fees Legal Practice Act No. 28 of 2014 This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Thinking of buying instead of renting?
The property market has been labelled a buyer’s market for most of 2020. Even though this year has proven to be disastrous in many respects, many factors have been beneficial for property buyers. From the historically low interest rates and the adjustment of the property transfer threshold, to lowered property prices, the market opened its doors to buyers (at least figuratively speaking for most of the year due to lockdown regulations). But the simple truth is that buying property isn’t necessarily the right choice for everyone, even when they can afford it. Finding out which is best for you is the key. Renting property The most obvious reason for choosing to continue renting property is finances. Buying a home requires access to funds in order to qualify for a home loan, and a commitment to a continued expense over many years, as you pay off your home loan. Choosing to rent will also allow you to lower your debt-to-income ratio which will ensure that you have more lending options open to you in the future. However, once you can afford to buy a house, it may still not be the most beneficial option for you. The questions you need to ask yourself once you have the finances to back a property purchase become vastly more introspective. When the question is no longer “Can you?”, but rather “Should you?”, you are required to consider how buying a house will affect you… for the rest of your life. Not a simple task, we know. So, start with two simple questions. The first question is: “Am I ready to take full responsibility for the property (including all the maintenance expenses)?” Homeowners do not have the luxury of calling a landlord when something breaks or leaks or blows away in a gust of wind. Owning a property is a full-time investment that will require you to care for your home consistently, throughout the year, and not just when something goes wrong. The second question is: “Am I ready to settle down in one place for the foreseeable future?” If you are still adventurous at heart and unsure of where you want your life to go, buying a house may inhibit your options and make you regret one of the biggest decisions of your life. This may introduce buyer’s remorse into your life at a time when our economy really does not allow such an unaffordable luxury. Renting a home may be a safer option when you are still looking for adventure, allowing you to alter the course of your life reasonably easily. Ownership The biggest benefit of owning your own home is the fact that you are paying for something that will belong to you in the end, not simply paying for the privilege of having a place to stay in, with nothing to show for it in the end. Paying off a home loan means you are ensuring that you won’t have to pay for habitation throughout your whole life, meaning rental expenses will someday cease to be a part of your monthly expenses. This, in turn, will allow you the opportunity to save money and increase your wealth in the future. Once you begin thinking about buying a property, it is also important to remember the aforementioned fact: The real estate market in currently swinging in your favour. Property prices can be unpredictable and you may never again get an opportunity such as this. So once you know you are ready for the responsibility and know you want to settle down, don’t let grass grow under your feet, unless its growing on the lawn that belongs to you. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Buying and selling: Avoid the potential nightmare
Buying a new home is always an adventure – but what if you’re still trying to bring a previous adventure to a close? Facilitating the transition of homeownership comes with an array of concerns that are unavoidable when the purchase of a new home and the sale of an old one occur simultaneously. The two primary concerns for buyers who are sellers at the same time are finances and logistics. If the transition is to be facilitated successfully, these two concerns must be taken into consideration from the start. Financing Your Future Finding funding for a real estate purchase is not a simple process, and it is even more complicated when you are already attached to a home loan or mortgage plan. When this is the case, your options vary: Equity from your Current Home When your current home is put up as equity in a new home loan, a suspensive condition can be added to your Offer to Purchase, clearly stating that your purchase relies on the sale of your existing property. However, such a suspensive condition will always contain a deadline by which the sale of the existing property needs to occur. If it doesn’t, your dream home will become fair game on the market again. Securing Bridging Finance Another option is to obtain bridging finance, where you take out a new loan that enables you to cover the essential costs of the new property purchase while you await the sale of your current property. This is an expensive option, as it comes with additional administrative costs and conditions. It will, however, enable you to purchase your dream home without the threat of it going back onto the market. Cash Purchase While not common, cash purchases are possible. The most common scenario in which a cash purchase becomes possible is where a homeowner uses the funds from a successful property sale to fund the purchase of another property when no existing home loans still needed to be settled or were close to being paid off. With a cash purchase, the buyer removes much of the pressure – but this not something that is realised often. Considering the Logistics With all three of these financing options another conundrum enters the picture: Where are you going to stay if the sale and purchase times do not overlap? When one home is being traded for another, the possibility always exists that one contract will have ended before the next has begun. Occupational Rent The first option is to pay occupational rent in order to continue living in your old property after it has been sold. With occupational residency, you will unfortunately also be inhibiting the new owners of the sold home from moving in, making this an arrangement that must take both parties into consideration. This option does, however, allow you to move directly from your old home into your new home in one go, saving on transport and storage costs. Short-term Rent Finding a short-term rental is the next best way to go. It may be more expensive, but you will most likely be allowed to stay on as long as you need, as long as you pay your rent. The only downside is that you may need to rent storage space for your possessions as well, depending on the size of the short-term pitstop. Bumming on the Couch This is the cheapest of all the options. Family and friends who live close by will undoubtedly be willing to offer you and your family the spare room, the couch, or at least a tent in the backyard if there are no other options left to you. Unfortunately, this option also requires the renting of storage space, or family and friends who are willing to have you park your furniture-filled trailer in the driveway. To ensure that your move from one adventure to another is not a financial and logistical nightmare, it is vital that you obtain the necessary guidance to get things done right the first time. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Real Estate – The smart investment
Buying real estate is more than finding the right home or location for your business – owning property is an investment that holds more benefits than you might know. Income Predictability While interest rates may alter mortgage repayments at first, real estate offers a somewhat constant financial investment. Once home loans are repaid in full, real estate offers the owner a constant income that does not fluctuate with the market, an income that can increase with inflation. Of all the investment types, real estate is the safest from external influence. Increasing Value Property appreciates in value over time. Thanks to South Africa’s reliable climate, real estate investments rarely depreciate due to natural causes, so long as the property is well looked after by its tenants and owner. Appreciation levels have increased at 6% per year, on average, since 1968, meaning your investment will grow no matter what. Improve Your Investment Where other investments rely on the financial market, the greater economy and an organisation’s performance to increase their value, property value can be greatly improved by improving the actual property. With a little elbow grease and dedicated planning, you can increase the value of your investment yourself. Retirement Ready A great benefit of owning property is that it is there when you need it the most. While the initial burden of home loan down-payments on cashflow can be rather strenuous, the weight lessens considerably over the years as the principal reduction increases. This means that your cashflow will increase as you near retirement, allowing you to invest your money more appropriately. Up Your Equity While you pay off your home loan, you are also increasing your equity as your property counts as an asset in your net worth. Through increased equity you will be able to gain more leverage in financial situations, when obtaining a loan, for example, and you will be able to grow your wealth more steadily as well. Portfolio Diversification Real estate investment holds less risk than other major class investments, allowing you to create a diversified and safer investment portfolio. Through a diversified investment portfolio, you ensure that your investments are not all influenced by the same external factors, such as a fall in share value (as has been seen during the COVID-19 pandemic). When you start looking at investment options, it may be a wise decision to consider including real estate in your portfolio early on. Remember to reign in the assistance of the experts to help you find the perfect property to invest in. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Fast forward your property transfer
Buying a house is a big decision, one in which the buyer will have invested numerous hours of research, planning and careful consideration. It makes sense then that a buyer would want their property transfer to be finalised as quickly as possible. But while property transfers are of nature a time-consuming process, there are steps buyers can take to make sure the process runs as smoothly as possible. Step 1 – Determine what you can afford Before you start typing your first Google search as you begin browsing the For Sale signs on the net, you should have a clear idea of what they can afford. Determining what you can afford will take careful budgeting and planning, an area where the assistance of a financial consultant will not go amiss. Step 2 – Save for the deposit Once you have a clear sense of what your budget will allow, you can start saving up for the deposit. With the necessary guidance, you will be able to estimate how big a deposit you will be able to save ahead of the time, something that will lower the mortgage amount you need to apply for. This step can be taken far in advance, however, and will benefit you greatly once you do decide to invest in your own property. Step 3 – Assess your credit and get pre-approval Another step that should be taken beforehand, is to analyse your credit record and get pre-approval for a home loan. This will allow you to plan more efficiently by knowing how great a deposit you will have to save up by knowing how great a home loan you can qualify for. Through pre-approval, you remove any unwanted surprises that may have awaited you otherwise. Step 4 – Keep the necessary documentation ready This may feel like skipping ahead, but once you’ve found the perfect home and want to apply for a home loan, you will need to submit a number of documents, including documents you can prepare beforehand, such as copies of your ID and marriage certificate/antenuptial contract (if married). Having these documents ready ahead of time saves you valuable time when you’ve found your dream home. Step 5 – Find a real estate agent Real estate agents can offer you insight into an industry and market that requires all the know-how you can muster. By obtaining the assistance of a trusted real estate agent, buyers are able to minimise their costs and efforts in the property search, while also improving their chances of navigating the legislative processes that come with real estate purchases. Step 6 – Find your ideal home By ensuring that steps 1 to 5 are all taken care of, everything else is smooth sailing, where you can sit back and enjoy the ride without having to worry about the hiccups that could have come up along the way. Limit the time your property transfer will take, step by step. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)