Mapaseka Mogagabe has watched too many people fall in love with the wrong house.
They walk through a property, picture their furniture in the lounge and imagine Sunday mornings in the garden. Then they make an offer, only to discover later that they don’t qualify for the bond or that the monthly costs will eat them alive.
“People get excited,” says Mapaseka, a real estate agent with eight years of experience. “They start house hunting before they even know what they can afford.”
In episode 11 of I Own My Property, in partnership with SA Home Loans, Mapaseka describes the pattern she sees all the time. And it’s the reason why the first step in building a property portfolio has nothing to do with finding the perfect home. It has everything to do with knowing your numbers.
Mapaseka’s advice is simple: before you do anything else, figure out what you can actually afford.
That means sitting down with your payslip and working out what’s left after all your expenses: rent, groceries, transport, school fees and medical aid. Everything. What remains is your discretionary income. And from that, you need to set aside enough to cover your bond repayment, rates, levies (if it’s a sectional title property) and utilities.
She gives an example. If you earn R20 000 a month and have R15 000 left after expenses, you might think you can afford a bond of R10 000. But once you add levies, rates, electricity, and water, that R10 000 quickly becomes R12 000 or R13 000. Suddenly, you’re stretched too thin.
“You need to be realistic about what you can carry every month,” she says.
Once you know your budget, the next step is to get pre-qualified. Not pre-approved. Pre-qualified. There’s a difference.
Pre-qualification gives you an indication of what a bank might lend you based on your income and expenses. It’s useful for house hunting because it gives you a range to work with. But it’s not a guarantee. Final bond approval only comes after the bank has valued the property and checked all your documents.
But whether you’re buying a flat or a house, the same principle applies: do your research. Look at comparable properties in the area. Understand what similar homes have sold for recently. Don’t overpay because you’re emotional. And if you’re selling, don’t underprice your property because you’re desperate to move.
Mapaseka has been on both sides of those conversations: with sellers who refuse to budge on price because they’ve lived in the house for 20 years and it holds memories, and with buyers who offer R50 000 below the asking price without justification. Neither approach works.
“The market doesn’t care about your feelings,” she says. “It cares about what the property is worth.”
Once you’ve made an offer and it’s been accepted, there are still costs to plan for: transfer fees and bond registration fees. These are paid to attorneys and can add tens of thousands of rands to the total. If the bank only approves 80% of the purchase price, you’ll need to cover the rest yourself.
And then there’s the interest rate. Most people accept whatever the bank offers. But Mapaseka says you can negotiate, especially if you’re working with a bond originator. A difference of even half a percent can save you thousands over the life of the loan.
Her final piece of advice is for people who feel like they’re not ready yet. Maybe they don’t have a big deposit. Maybe their credit score isn’t perfect. Maybe they’re still figuring out their budget.
“Start where you are,” she says. “Your first property doesn’t have to be your dream home. It’s a stepping stone.”
Because the truth is, building a property portfolio starts with one decision: to stop dreaming and start planning.
This post is sponsored by SA Home Loans and produced by Media24 Advertising and Content Marketing for Daily Sun
