The Rep 9 April 2021

8 Tel: (045) 839-4040 / editorial: mjekulal@therep.co.za / advertising: charodinev@therep.co.za 9 April 2021 THE R E P R ES E N TAT I V E
Overcoming those
first-time buyer jitters
It is not uncommon for first-time
buyers to experience anxiety
after signing an Offer to
Purchase (OTP) and realising
they have now locked
themselves into millions of
Rands in debt.
As one of the biggest
purchases one can ever make, it
is entirely normal to experience
this form of buyer’s regret.
To help ease this anxiety,
there are a few considerations
first-time buyers should remind
themselves of.
“The first mistake buyers
make is to think of the purchase
solely in terms of the amount of
debt they have taken on. Real
estate is an appreciating asset.
“Instead of viewing it as an
insurmountable mountain of
debt, consider each repayment
towards the home loan as an
investment towards future
w e a l t h ,” suggests regional
director and CEO of RE/MAX of
Southern Africa, Adrian Goslett.
The second approach firsttime
buyers can adopt is to plan
and budget accordingly, so they
know they can always afford to
keep up with the repayments.
“One of the biggest
concerns for first-time buyers is
that they will fall behind on the
r e p ay m e n t s .
“The best way to eliminate
this concern is to go over the
i n d iv i d u a l ’s finances and to
create a budget that he/she can
stick to so that this never
becomes a justifiable concern,”
he recommends.
However, there are things
that are out of one’s control that
can affect monthly repayments.
For example, interest rates
can change every two months
when the MPC meets.
“The best way to avoid
unnecessary stress around this is
to purchase within one’s means
and to leave room for a 0.25%
increase.
“Historically, the MPC
usually never hikes interest rates
by more than 0.25% points at
any given meeting.
“If there is a series of interest
rate hikes, these usually only
happen gradually, which gives
homeowners the time to plan
and adjust their budget as
n e c e s s a r y,” he explains.
Having a contingency fund
could also prove helpful in
putting buyers’ minds at ease
about their purchase.
“Life is unpredictable.
Things often break or suddenly
need replacing, which can put
financial strain on a household.
“Buyers might also find
themselves temporarily
unemployed during the span of
their home loan.
“Having roughly around two
months’ salary set aside in a taxfree
emergency savings fund
can lessen the anxiety buyers
may feel around keeping up
with their repayments.”
After conducting all the
necessary planning and
reassuring themselves that they
can afford their purchase,
Goslett suggests c o n c e n t ra t i n g
instead on the excitement of
purchasing their first home.
“Once assured that they
have made the right decision,
buyers should distract
themselves from unnecessary
worry by focusing on all the
benefits of owning their own
h o m e ,” he says.
“For example, homeowners
can hang pictures without
getting a landlord’s approval
and the landlord no longer has
the ability to sell the home
while you’re still living in it, or
to increase your rent beyond
what you can afford.
“If thinking of these benefits
do not work, then build up
excitement for your new home
by planning a Covid-friendly
housewarming with friends and
family and start shopping for
new furniture for the new home.
“Purchasing your first home
is a big milestone, so do not
allow anxiety to sully what
ought to be the start of a very
exciting chapter in your life.”
GAME CHANGERS: Komani Development Foundation executive members, from left,
treasurer Luvuyo Rani, fundraiser Xolisa Bangazi, chair Nqaba Nqandela and secretary
Mongezi Menye Picture: SUPPLIED
Imbizo brings
minds together
Sanlam CEO says leadership vital in business
ABONGILE
S O L U N D WA N A
The Komani Development
Fo u n d a t i o n has
introduced an Imbizo
(gathering), a new feature which
aims to reflect on the wellbeing
of Komani and its surrounding
areas.
It was launched in a virtual
meeting recently and will be
added to the foundation’s
agenda, which includes
education, entrepreneurship
and thought leadership.
KDF was started by a group
of professionals from Komani in
2016, who sought the
progression of the town.
Cape Town-based Glacier
Sanlam CEO Khanyi Nzukuma,
who was the main speaker,
advised entrepreneurs to take
cognisance of growing their
businesses through leadership
amid Covid-19 and economic
disruptions.
“As individuals, we do not
have a lot of control over the
bigger issues in the country and
the economy, but for what
happens in our businesses – and
this is where leadership plays a
big role - people have a choice
on how to react to the
unexpected.
“We can either step back
into perceived safety or step
forward into growth, by finding
opportunities and solutions that
may not be immediately
a p p a r e n t ,” Nzukuma said.
Adopting a strategy to grow
one’s business was vital, he
said.
“Thinking like an
entrepreneur means having a
‘big idea’.
“An idea needs to be turned
into an opportunity, which
means it will have value if it is
executed well.
“Think of an existing
problem you could solve for
future customers and consider if
it can be executed long-term.”
He added that leaving a
legacy for the next generation
was crucial.
When a business grows,
Nzukuma said an entrepreneur
should consider estate and
investment planning to leave a
l e g a cy.
”An inheritance is passed
down to the next generation of
your family to ensure that there
is a plan in place for your
business if you pass away.”
He urged the younger
generation to set their own
goals without competing with
others, but to aim to be the best
version of themselves by
offering something unique or to
acquire skills others did not
h ave .
KDF chair Nqaba Nqandela
said the dialogue would serve
as a motivational platform that
would come up with solutions.
“Many of us know Komani is
facing challenges, which is an
u n d e r s t a t e m e n t ,” he said.
“We aim to contribute to
some of the solutions to bring
progressive development to our
home town and people.”
The foundation has adopted
20 underprivileged pupils from
Nkwanca High School and
KwaKomani Comprehensive,
providing them with
educational resources.
“Th i s is about what we can
do to contribute meaningfully to
Komani as a community,”
Nqandela said.
MAKING A DIFFERENCE
DONATION: Sinemibono Primary Security Co-op took time out of their busy schedule to sha re
what they have with the community of Silvertown informal settlement. More than 100 food
packs, clothes and shoes were donated to the public Picture: ZINTLE BOBELO