benefits of homeownership
Discover the benefits of homeownership
About us
Welcome to My First Home, your trusted partner in the journey to homeownership. We are dedicated to educating and empowering first time homebuyers by providing clear insights into the world of homeownership.
At My First Home, we believe that owning a home is more than just a financial decision it’s a positive life changing milestone that builds stability, wealth, and pride. Our mission is to empower you with knowledge towards buying your first home by breaking down complex concepts, offering step by step guidance, and sharing expert advice.
From understanding the benefits of homeownership and navigating financing options to making an informed decision.
Let us help you take the first steps toward your dream home, because with the right knowledge, homeownership is within your reach.
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Calculate your affordability
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Affordability & QUALIFICATION CRITERIA
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first time home buyers guide
Steps towards homeownership
Should i rent or buy?
Is it better to Rent or Buy a home?
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Benefits Of Homeownership
Owning a home is one of the most rewarding achievements, offering financial stability, personal satisfaction, and long-term benefits. Here’s why becoming a homeowner can be a life changing decision:
Building Equity
Home equity is the portion of your property that you truly own, it's the difference between your home's market value and what you still owe on your home loan. As you pay down your loan or as your property’s value increases, your equity grows. Think of it as a built in savings account that grows over time, adding to your wealth and giving you financial leverage for future opportunities.
Building Equity
Home equity is the portion of your property that you truly own, it's the difference between your home's market value and what you still owe on your home loan. As you pay down your loan or as your property’s value increases, your equity grows. Think of it as a built in savings account that grows over time, adding to your wealth and giving you financial leverage for future opportunities.
"Homeownership remains one of the best ways to build wealth and equity over time"
Suze Orman, Personal Finance Expert
Financial Security
Fixed rate home loans protect you from rising rental costs, offering predictable monthly expenses. As you pay off your home loan, you reduce housing costs in the long term and eventually eliminate them altogether.
Investment Potential
A home is often one of the most significant investments you’ll make. It can act as an asset that contributes to your financial portfolio and provides opportunities for refinancing or resale.
Stability and Control
Homeownership gives you the freedom to make your space truly yours decorating, renovating, and customising to suit your tastes without needing landlord approval. It also fosters a sense of stability and belonging within your community.
Tax Advantages
Homeowners may benefit from tax deductions on mortgage interest and property taxes, helping reduce the cost of ownership.
Retirement Preparation
By owning a home outright by retirement, you reduce living expenses and potentially use the property’s value to support your financial needs later in life.
Emotional and Social Benefits
Owning a home can provide pride, security, and a place to create memories with loved ones. It can also strengthen your connection to your community through long term residence.
Homeownership is not just about where you live, it’s about investing in your future. By taking this step, you’re laying a foundation for financial growth, stability, and personal fulfilment.
Affordability & Qualification Criteria
Affordability
Affordability is based on your ability to make monthly home loan payments without financial strain. Lenders calculate this by assessing your income, expenses, and other financial commitments, a common guideline is that your monthly home loan repayment should not exceed about 30-35% of your gross monthly income.
Affordability is based on your ability to make monthly home loan payments without financial strain. Lenders calculate this by assessing your income, expenses, and other financial commitments, a common guideline is that your monthly home loan repayment should not exceed about 30-35% of your gross monthly income.
This calculation considers:
Income: Total monthly income from all sources.
Expenses: Monthly expenses, including other debt repayments (e.g., car loans, credit cards).
Interest Rates: Higher rates increase monthly repayments, which can impact the amount you're able to borrow.
Qualification Criteria
Qualification criteria are set by the lender to evaluate the risk involved in lending to you. Key criteria include:
Credit Score: Your credit history is checked to gauge your repayment reliability. A higher score generally means lower risk and better chances of approval.
Employment Stability: Lenders prefer applicants with a stable income source or employment history.
Debt to Income Ratio (DTI): This ratio compares your total monthly debt to your income. Lower DTI ratios indicate better financial health and may improve eligibility.
Deposit: While some loans offer 100% financing, having a deposit (usually 10-20% of the purchase price) often improves approval chances and monthly repayments.
Meeting both affordability and qualification criteria gives you a better chance of securing a home loan at favourable terms.
Use our calculator to calculate your affordability Click Here
First Time Home Buyer's Guide
Welcome to the world of homeownership! Here’s a quick, essential guide to help you on your journey to buying your first home.
1. Assess Affordability: Calculate how much you can afford based on your income, expenses, and lifestyle. Aim for monthly home loan payments to be around 30-35% of your gross income.
2. Consider Upfront Costs: Account for deposits, transfer fees, bond registration fees, and potential moving expenses. A deposit of 10-20% is often preferred by lenders.
3. Check Your Credit Score
A good credit score increases your chances of loan approval and helps secure better interest rates. Check your score regularly, correct any errors, and aim to keep your debt to income ratio low.
4. Save for a Deposit
Although some lenders offer 100% financing, having a deposit improves your chances and can reduce monthly repayments. Saving 10-20% of the home’s purchase price is a common recommendation.
5. Know What You Want in a Home
Decide on must haves vs. nice to haves, such as location, size, style, and neighbourhood amenities. Be clear on what’s essential to fit your lifestyle now and in the future.
6. Work with a Real Estate Agent
A trusted agent knows the local market and can guide you through the buying process, including negotiating offers and ensuring you get a fair deal.
7. Make an Offer
Once you find the right home, make an offer based on current market values and the home’s condition. Your agent can help with this process, ensuring your offer is both competitive and realistic.
8. Secure Your Financing
Once your offer is accepted, your home loan application goes to final approval. Be ready to provide the bank with all necessary documents (proof of income, expenses, etc.) promptly to avoid delays.
9. Understand the Legal Process
Bond Registration and Transfer: In South Africa, a bond attorney registers your home loan, while a transfer attorney registers the property in your name. Transfer duties and bond registration fees apply, so plan for these costs. If you purchase a home in a new development all costs are usually included in the purchase price.
10. Get Insurance and Plan for Maintenance
Protect your investment with homeowners insurance and budget for regular maintenance to keep your property’s value intact.
Congratulations!
Owning your own home is a major step toward financial independence and security. Following these steps will help you navigate the process with confidence and make the most of your new investment.
Should I Rent Or Buy?
Renting and buying a home have distinct advantages, but buying often stands out for its long term financial and personal benefits. Here's a comparison to highlight the differences of renting vs buying:
Renting a Home
Advantages:
Flexibility: Easy to relocate without the long-term commitment of ownership.
Lower Upfront Costs: No need for a down payment, just a deposit and monthly rent.
Minimal Responsibility: The landlord handles property maintenance and repairs.
Disadvantages:
No Equity: Rent payments do not contribute to ownership or build wealth.
Rising Costs: Rent often increases over time, making long-term affordability uncertain.
Lack of Stability: You may have to move if the landlord decides to sell or change the terms.
Buying a Home
Advantages:
Building Equity: Monthly home loan payments increase your ownership in the property, turning your home into a valuable asset. Over time, property appreciation can further enhance your wealth.
Stability: Homeownership provides long term stability, with no unexpected evictions or major changes to your living situation.
Cost Predictability: Fixed rate home loans lock in your housing costs, unlike rent, which may rise annually.
Investment Opportunity: A home is an appreciating asset, meaning its value may grow, offering a potential profit if you decide to sell.
Personal Freedom: You can renovate, decorate, or landscape your home to suit your tastes and needs.
Tax Benefits: Many homeowners qualify for deductions on mortgage interest and property taxes.
Disadvantages:
Maintenance Responsibility: Owners are responsible for repairs and upkeep.
Why Buying is Better
Buying a home is an investment in your future. While renting may offer short term convenience, it builds no wealth or stability. Homeownership allows you to create a legacy, secure financial growth, and enjoy the pride of owning a space that is truly yours. Over time, the money spent on a home loan translates to equity and ownership, whereas rent only benefits the landlord.
In short, renting may work temporarily, but buying a home provides financial security, stability, and a sense of accomplishment that renting cannot match.
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what people say about us?
"Buying my first home felt like a dream come true, and the team made it so easy! They guided me through every step, answered all my questions, and made me feel confident in my decision. I’m so proud to finally have a place to call my own!"
Thandi M
Johannesburg
"We never thought we’d be able to afford our own home, but ‘My First Home’ helped us turn that dream into reality. From understanding the process to securing the best home loan deal, they were with us all the way. We started our new chapter in our very own space!"
Lerato & Themba N
Boksburg
"Owning my own home was always a goal, but I had no idea where to start. The team not only made the process stress free, but they also cheered me on every step of the way. It’s the best investment I’ve ever made!"
Sipho K
Soweto
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