Tips To Reach Your Housing Goals This Year

Tips To Reach Your Housing Goals This Year 

Are you looking for a place to call home on a more permanent basis? Do you feel like it’s time you purchased your first home and reached those housing goals you’ve been dreaming of? Let’s take a look at how you can start on the journey to being a homeowner, how you can get help, and other living options while you figure out homeownership. 

First; Finances 

Affording a home in South Africa is possible if you fall under a certain tax bracket. And with so many South Africans surviving on minimum wage, the chances of a mortgage are significantly low for them. There are more and more financial service providers that are stepping up and offering people home loans and bonds in order to make their dreams a reality, and the Department Of Human Settlement (DHS) is also helping potential homeowners with subsidies. The DHS provides housing finance for households that earn too much to qualify for a full housing subsidy but too little to qualify for a mortgage loan. 

The department’s housing entities include:
National Housing Finance Corporation (NHFC) was established as a development finance institution in 1996 and is mandated to provide access to affordable housing finance for low‐income and middle‐income households by leveraging private sector funding to finance housing developments and create affordable housing stock. In the affordable housing sector, the NHFC plays multiple roles as an innovator, financier and facilitator by ensuring viable housing finance solutions, sustainable human settlement growth and engagement of relevant partnerships. The NHFC has been tasked to administer and facilitate delivery and access to the Finance-Linked Individual Subsidy Programme (FLISP), which provides poor and low to middle-income households with access to adequate housing. Qualifying households for this subsidy are those that are in the gap market, those that do not qualify for a fully subsidised house, and at the same time, do not qualify for a mortgage loan from the banks.

 To be considered for a FLISP subsidy, you must: 

  • have a pre-approved home loan from a South African lender;
  • have a monthly household income of between R3 501 and R22 000 (single/joint);
  • never have benefitted from a government housing subsidy scheme before;
  • be a South African citizen or legal permanent resident with a South African barcoded ID;
  • be at least 18 years old and competent to legally contract;
  • married/divorced/cohabiting/single with financial dependants; and
  • be a first-time property owner. 

The trick to understanding how much money you will need for your loan or the rest of the money left to pay after the DHS subsidises your home is to work out a budget. This will also help you figure out how much you can afford to part with towards your home and help you make more informed decisions on which home to choose. 

Speaking Of Choosing A Home…

For years now, the idea of buying a home has evolved as people no longer look for standalone houses only as their forever homes. Some are considering flats, estates, and more, and this has opened the home sales industry to more opportunities. So, when it comes to choosing your forever house, you have range. Think about the location you want to stay in, and if you have a family, consider schools and such in that area. Another thing you will need to think about if you have a family is things such as playgrounds. Once you know where you want to live, you can start looking at different home options and make your decision. 

For The Temporary Home

When it comes to living in the city of Johannesburg, many people often opt for flat living in the city, and who knows that better than JHC? You can rent out a flat for a year or so while you figure out your finances regarding buying a home. Renting also teaches you to manage your finances and plan better because the rent is preparation for when you have to take out a loan. Give JHC flats a shot while you figure out how to save for a house. You won’t regret it. 

Final Thoughts

Owning your dream home in South Africa is not too difficult if you have the right information and people to help you. Always head to the department or any government facility if you feel like things do not make sense, and never trust unknown housing companies that seem like fraudsters. Always check the credibility of the people trying to sell you a home as this is a big purchase, and just enjoy the process of being a new homeowner. Good luck, and we hope you get the keys to your forever home soon. Come to JHC and find out how you can be part of the family. We have something for everyone, from flats in Newtown to flats in Cosmo City.