Setting up your first home after leaving the nest is an exciting yet challenging milestone but there is a lot more to it than merely a change in location – successfully navigating the financial factors and practical aspects requires careful planning and thoughtful consideration.
So says Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, who adds that it’s important to be aware that although these are exciting times, this significant step into independence comes with a set of challenges and potentially costly pitfalls.
Odendaal says there are three common pitfalls, with the first being failure to budget properly: “Overspending on decor and non-essential items is very tempting but can quickly transform what should be an exhilarating experience into a financial burden which can take a long time to overcome, especially if one does so on credit.
“Another pitfall lies in overlooking the essentials because, amid all the fun of decorating, it’s easy to forget practical necessities like kitchen utensils, cleaning supplies and other basics which you’ve never had to purchase before.
“Finally, the allure of impulsiveness can lead to regrets, from signing a lease on a property you’ll struggle to afford to accumulating unnecessary clutter you’ll never use so discerning between what adds value to the space and what merely occupies it becomes imperative.”
Odendaal says that taking the following steps will help to ensure a smooth transition into this exciting new chapter, allowing you to build a home that reflects your personality and aspirations but does not cripple you financially from the get-go.
Financial Assessment:
Before you start packing boxes, conduct a thorough financial assessment. Create a budget that encompasses rent, utilities, groceries, transportation, and other living expenses. Ensure your income comfortably covers these costs and leaves room for savings.
Savings Fund:
Establish an emergency savings fund to cushion unexpected expenses which can and often do arise. Aim to save at least three months’ worth of living expenses. This safety net provides financial security and breathing space in case of unforeseen challenges or emergencies.
Research and Compare:
Research potential neighbourhoods and housing options. Compare rental prices, amenities, and proximity to work or college. Consider the overall cost of living in different areas to find a location that aligns with your budget and lifestyle.
Always deal with a reputable estate agent or property management company to ensure that your rights are protected and you are safe from fraud.
Furnishing Plan:
Plan your furnishings and decor wisely. Identify essential items you’ll need immediately, such as a bed, sofa, and kitchen essentials and consider buying quality second-hand or affordable options initially, and gradually invest in quality pieces as your budget allows.
Checklist:
A well-thought-out checklist becomes a trusted ally in ensuring that no fundamental aspect is overlooked.
Utilities and Services:
Contact utility providers in advance to set up essential services like electricity, water, and internet. Plan for any installation fees and factor these costs into your budget. Having utilities ready upon moving in ensures a seamless transition.
Legalities and Agreements:
Review lease agreements carefully before signing and ask your parents or a friend for help if you aren’t sure because it’s important to understand the terms, conditions, and responsibilities outlined in the contract. Seek legal advice if needed to ensure you are aware of your rights and obligations as a tenant.
Packing and Organisation:
Begin packing well in advance to avoid last-minute stress. Label boxes clearly and organise items by category. Consider decluttering as you pack, donating or selling items you no longer need. This not only makes the moving process smoother but also ensures a clutter-free start in your new home.
Emotional Preparedness:
Acknowledge and prepare for the emotional aspects of leaving home. Moving out signifies a transition to greater independence, and it’s normal to experience a mix of excitement, trepidation and nostalgia. Embrace this emotional journey as part of your personal growth.
Establish Support Systems:
Build a support network in your new location. Connect with local friends and get to know your new neighbours. Having a support system in your new community helps ease the transition and fosters a sense of belonging.
“By budgeting wisely, prioritising essentials and exploring cost-effective options, you can create an affordable home that reflects your style and meets your needs without draining your finances,” says Odendaal.
“Remember that the journey is just as important as the destination, and with thoughtful planning, creating your first home can be a memorable experience – for all the right reasons.”
Here’s what really great locations have in common
Gerhard Kotzé, CEO of the RealNet property group, shared that of course it isn’t easy to look into the future and pick an area that you think will still be appealing to potential buyers when you decide to resell your property in 10 or 20 or even 30 years’ time. And what makes things even more difficult is that there is no ‘one size fits all’ prescription for the perfect location.
“Preferences vary in different towns, cities and countries, and according to the lifestyle aspirations of buyers. In some places, there may be a high demand for walkable areas offering convenient and efficient urban living, for example, while in others, the suburbs or even rural settings may be more desirable.”
However, he says, there will always be some locations that are more desirable than others, even if they appear to be similar. “In SA, where good security is a priority for most buyers, homes in gated estates will generally sell for more than similar homes elsewhere and show a faster increase in value. But several factors can come into play to persuade buyers that one estate is a better choice than another.
“And this is why it is vital to seek the advice of property professionals who understand local market dynamics and buyer preferences before committing to any real estate purchase.”
Some factors to consider when scouting for good locations, says Kotzé, include the following:
*The quality of the area and the lifestyle it offers. Decide if you want to live in a more urban environment with a vibrant cultural and entertainment scene, or maybe a more tranquil suburban setting with a strong sense of community. Then check out things like safety and security as well as the proximity to schools, shopping centers, parks, medical facilities, public transport, sports and entertainment venues, as well as the quality of those amenities.
*Property demand. Take a good look around to see if homes in the area are generally well-maintained and if the streets, parks and other public spaces look clean and tidy. Find out from your property professional whether there is good demand for homes in the area and if this usually exceeds the supply of homes for sale. This should be reflected in relatively short listing times and a steady rise in prices. On the other hand, if there are more homes for sale than buyers, exercise caution and try to find out why so many sellers are keen to leave.
*Proximity to employment. Homes located near major employment centers, such as business districts, office parks or even industrial areas are often more desirable than those further away. Everybody likes a shorter commute that saves them time and money – as long as this does not mean living with noise, extra traffic or pollution.
*Natural features and views. Properties in areas that boast attractive natural features, such as a waterfront, mountain views, or lots of safe parks and green spaces, tend to be more desirable. These natural elements can enhance the quality of life and provide aesthetic value, positively impacting resale values.
*Future development. Plans for new developments in an area can be negative or positive in terms of enhancing a home’s appeal and resale value. A new school or convenience shopping centre would usually be regarded as a good thing, but few people would appreciate a new highway slicing through their area, or want to live next to a giant new mall or even a new hospital, so you need to find out what the development plans are before you buy.
*Title deed or zoning restrictions. The location of a property can be subject to various zoning regulations and municipal ordinances, and in an estate, there may also be architectural guidelines and building restrictions that you have to follow. These provisions can all affect how you are able to use, renovate or alter the property and its eventual resale value, so once again it is important to have this information in hand before you make a final decision about where to buy a home.
