Those who know me, know that I haven't had much parental guidance for the latter part of my life - which made certain adulating steps quite difficult to figure out.. Like buying your first car, spending money wisely, investing, saving and now even buying your first home...The other issue I had was that I am a horribly impatient person, when I make up my mind to do something - I want it then and there and I will do whatever it takes to do it! For example - hardly 2 weeks into my articles (and mind you - we had training in these two weeks) - I bought my first car. I struggled to get to work everyday because there were few buses and taxis going that route - and the ones that did had all left me behind on one particular day...That day, it took me 2 taxis, a bus and a cab just to get home...not to mention the fact that `I had to walk through Joburg CBD in the dark at night...Besides, working and being able to buy a car was my biggest motivation for passing honors - I had taken buses and taxis my entire life, it was about damn time I moved on to something better! That said, I got my little Ford Figo - I even named her Betty, but only when I did Betty's first service did I find out - there is a huge difference between a warranty and a motor plan - and I did not have a motor plan for Betty! As an article clerk, living on your own, trying to make ends meet on a salary that was more of a stipend - this broke my bank! And these are the little things I wish I had a dad or even mom to teach me at the time...
That said, I did it on my own, I figured it out - albeit the hard way. Now I know things I can pass on to my kids some day and I learnt these all by myself - Google wasn't that big back then LOL
For the longest time I was putting off buying a home, because it would strain my cash flow. I've done property studies, I've done the numbers - home owners spend more than tenants, it's a fact. You don't necessarily pay levies as a tenant - unless it is a net lease, you also don't have to fork out about a minimum of 10% of cash as a deposit on the property that purchaser's do when they buy, and lastly - maintenance, rates, taxes and levies are not something you have to worry about as a tenant on a gross lease. Not to mention the agent's fees you have to pay if you decide to use a managing agent to find, screen and manage your tenants for you. But what is also a fact is that yes, as a tenant - you spend less, but have no asset after 20 years. An asset that could possibly be using to generate you passive rental income in your retirement. Catch 22 huh?! I always just say, do what you feel is right for you. Even though some may have approached 30 - it doesn't mean you HAVE to own a property - those things will come...Do everything in life at your own pace.
Gosh I have written paragraphs already and haven't even made the points I wanted to yet - which is the process around buying a home. People always tell you beware the transfer costs - but let me tell you - that is only one line item of costs you will have to deal with, so here's a video detailing it all. Hope you enjoy it