Life has somewhat stabilised for the Padayachee’s and Praven and I are finally getting serious about buying a place of our own. But while doing “our research” the reality of doing that has hit us hard. These days buying a home is a commitment that can sometimes last up to 30 years, and while that’s hardly the eternity that we’ve sworn to spend together, it has some pretty heavy impact on the quality of our future.
For one thing, taking a bond at this point, (depending on what terms we would qualify for) could mean that we will be I will still be paying for our home into if not close to our retirement age.
Then there’s the “deposit” to consider. In a recent article I read that for a bond amount of between R250 000 – R500 000, an approximate deposit of 12.3% would be required. Between R500 000 and R1m, 18.7% and obviously that value just gets higher as the bond increases, I don’t even need or want to consider those. So putting that into bucks mean for a R750 000 home we’re looking at needing a deposit of over R140 000. I don’t know about you, but my rainy day savings account does not come close to that…. Confession… What rainy day savings account???
So what we’ve realized that while the actuality of purchasing our home might still take a while, we need to get our asses in gear now.
We need to start getting rid of any and all unnecessary debt, and start seriously saving enough to not only take care of the dreadful deposit, but all transfer charges, and minor renovations as well as all moving costs.