BUYING A HOME
Wanting to buy a home, wow, let's make the journey exciting and successful! The road to finding a suitable home however is filled with many choices. One of the most important choices being choosing between buying a newly built home or an existing resale home. Both options offer advantages. A great way to get started is by examining both options. You will need to ask yourself which type of home will best meet your needs.
Advantages of buying a Newly Built Home
Built in accordance with today's building rules, regulations and standards often has more safety features and fewer health hazards than older homes.
Reflects the latest in modern architecture and layout. Homes with great rooms, bigger closets and additional bathrooms.
More energy efficient in design with better windows, more efficient heating and cooling equipment, and more extensive use of insulation. Over 30% of your home's heat escapes through the roof. Ensure your home is properly insulated to save on heating and cooling costs while also protecting the environment.
Built with materials requiring less maintenance.
Most often customised to your requirements since you can often select many options and details ranging from floor plans and paint colours to faucets and light fixtures. You can allow your tastes to shine through from day one.
Take green living into consideration and include the use of solar energy. By having solar panels installed, you can heat your home and household water in an ecologically friendly way. Choose pressurised low-flow showerheads and toilets to help save water.
Provides additional opportunities to meet new friends as the neighbourhood develops and new households move in.
Allows for the creation of an environmentally friendly garden with indigenous plants, trees, herbs, vegetables and fruit. In this way you are contributing to the reversal of climate change.
Advantages of buying an Existing Resale Home
The architectural design displays more detail than the budget for a new home may allow.
Has mature trees and landscaping on more land than newer properties. One tree can absorb one ton of carbon dioxide over its lifetime. The shade provided by older trees can also reduce the need for air conditioning.
The established neighbourhood provides neighbours who can tell you all about your new area.
Likely to be in a location closer to required amenities such as shopping centres, hospitals, schools, police stations etc.
Provides the opportunity to buy a larger home, as based on a square meter comparison, existing properties tend to be less expensive than new ones of the same size.
Can have lower property rates and taxes than that of a new home, depending on locality.
Buyers have more room to negotiate the price or terms of sale than with a new home.
Home Loan solutions designed to suit you!
Nedbank offers a range of flexible home loan solutions designed to help you afford the home you've always dreamt about. Thanks to our competitive home loan interest rates and ability to tailor mortgage loans to suit the individual homebuyer's needs, you could be a whole lot closer to owning a home than you think! Whether you are a first-time homebuyer or a homeowner seeking to get approval for a second home loan, Nedbank has a financial solution that's right for you.
Select the right option for you
Ordinary Loan : a flexible home loan that can be tailored to your individual requirements for the purchase of an established residential property or the construction of a residential property.
Building Loan : may be used to finance the construction of a dwelling, additions or improvements to an existing residential building.
Buy to Let : is a loan used to purchase residential property for investment purposes with the intention of generating rental.
HomeVision : allows you to register a bond higher than the required loan, thus creating a surplus that may be accessed at a later stage.
BUILDING YOUR HOME
A Building Loan: is a product that is utilised to finance the construction of a dwelling, additions or improvements. For all new or existing clients planning to build a new residential property or who are in the process of upgrading their existing residential property and require a loan to finance the upgrading.
General Building loan information
You shall be charged monthly interest on each draw down payment requested by you and approved by Nedbank on a monthly basis. Subsequent monthly repayments will be made up of interest calculated on all previous draw downs made by you and approved by Nedbank until final draw down, but will not exceed the instalment quoted in the quotation.
It is mandatory to begin servicing your interest once your first progress payment is made.
Progress payments refer to the progressive draws in which the building loan is paid out. These draws are paid out as the building progresses, i.e. in stages. Nedbank will advance the builder a series of payments on condition that the Bank is satisfied with the percentage of building work completed. The builder normally requests three to four progress payments prior to completion of your home.
This ensures that quality homes are provided to you at competitive prices. The work of builders registered with the NHBRC is guaranteed for five years. This means that if something goes wrong, you have a claim against the NHBRC builder's fund.
No upfront payments will be authorised from your loan. It is important to ensure that the builder has sufficient funds to get started and to complete at least 30% of the building project.
RENOVATE YOUR HOME
As your family grows or your lifestyle changes, you may need to extend or improve your current home.
Re-advance
Re-advance gives you access to the capital amount you've already paid off on your home loan or access to the portion of the amount registered that was previously not utilised, up to the original registered amount. Approval is subject to Nedbank's credit qualifying criteria and property valuation.
Benefits
Access to available funds at your current preferential home loan interest rate.
No mortgage bond to be registered and therefore no attorney fees payable.
Further Loan
A further loan with registration provides you with an opportunity to apply for an amount in addition to your original loan amount. The amount will be based on the increased value of your property or the premise of increasing it. The further loan is secured by a second bond, registered over the property and lodged with the deeds office. Approval is subject to Nedbank's credit qualifying criteria and property valuation.
Benefits:
It is the most cost effective loan you can obtain to finance your renovations.
Easy and quick access to funds if accessing the enhanced value of your property.
Which renovations make worthwhile investments?
Be careful that you don't overcapitalise with your renovations, as the important thing is to get the greatest value from your home improvement. The Return on Investment may vary based on your area and the improvements you may be doing i.e. remodelling, replacements and additions.
Keep your renovations legal
Building permits: these are required if you are undertaking structural work. These permits ensure that improvements meet minimum safety standards.
Zoning: it is important to ensure that you understand what you can and cannot do in your area i.e. add swimming pools or a tennis court. A zoning map will inform you on sidewalks, side yards and other local requirements.
Before you start
Develop a plan for your renovations.
Consult an architect or designer to determine whether you'll be modifying an existing space or building an addition.
Establish a construction budget, including material and labour costs.
Select a contractor.
Take green living into consideration when renovating your home and include the use of solar energy. By having solar panels installed, you can heat your home and household water in an ecologically friendly way. Choose pressurised low-flow showerheads and toilets to help save water. Over 30% of your home's heat escapes through the roof. Ensure your home is properly insulated to save on heating and cooling costs while protecting the environment at the same time.
Once the job is done
A professional home inspection is recommended.
Inspection should cover all the home's major systems and structural elements, including the foundation, electrical system, heating and cooling systems, insulation, roofing, plumbing and all exterior features.
It is recommended that you are present for inspection so that you can see the problems first hand.
