Four things to do before you buy a house


Buying property is very exciting but it is also a huge financial commitment. In fact, it can be more than just a financial commitment. It is a commitment of your lifestyle.

That is why there are a few things you should chick off before you buy that dream home.


Do you dream of seeing the world some day? If you want to do something crazy and fun like backpacking across Asia for three months or spending a year living overseas then you may want to do that before you commit to paying off a home loan.

Buying a home is kind of like settling down. It locks you into paying off a bond whether you are living there or not, so it will be easier to do extensive travelling or live overseas for a period before buying a house.

Save up for a deposit

It is very difficult nowadays to get approved for a home loan without putting down any deposit. You could get away with only having a 5% deposit, but that is not ideal. You should actually aim to have at least a 15 to 20% deposit to put down. This will give you better rates and a more competitive deal at the end of the day.

If you don’t have enough for a good deposit then you may want to save up for a bit longer first.

Know where you want to live

This point seems obvious, but are you really sure about what town or city you want buy property in? Owning property isn’t just a commitment of your money, but generally a commitment that you are prepared to spend a certain number of years in a particular place. Sure, you can always sell your home and buy a new one, but it’s still a better idea to feel settle in the area first.

Get settled in your career

Buying a home is no trifling financial matter. It could be a commitment of paying a certain amount for 15 years! Can you project yourself forward in life and be absolutely sure that you will be earning enough for that period? It’s not just about how much you are earning right now. It’s about how secure you are for the future.

What if you want to change your career path in a couple years? That is never the easiest thing to do, but if you are paying off a bond it can restrict your options down the line. So first make sure that you are in a somewhat settled state in your career and finances.

This article was brought to you buy ooba, South Africa’s leading bond originator. Another thing you should do before buying a home is take a look at our bond affordability calculator to see what numbers are going to be involved in this exciting step of your life.