Buying a home or a car is one of the most significant financial decisions you’ll ever make. It can be an exciting journey, filled with dreams of new beginnings and the thrill of ownership.

But, as our latest podcast episode reveals, it’s also fraught with hidden costs and potential financial pitfalls that can turn that dream into a nightmare if you’re not prepared.

In this third episode of the Santam Insure your Future Money Bootcamp, I’m again joined by Mapalo Makhu as we delve into the intricacies of budgeting for big-ticket items like a home or a car.

We share our personal experiences of buying a home or car, and the lessons learned from mentoring others through similar purchases.

One of the key takeaways from the episode is the importance of understanding all upfront costs associated with buying a property. These can include transfer fees, bond registration fees, and conveyancing lawyer costs.

Many first-time buyers are shocked by these expenses, and are often under the false impression that their mortgage will cover everything. Upfront costs can be substantial, so it’s vital that these are understood.

We also discuss the emotional aspect of buying a home. It’s easy to fall in love with a property and let your emotions drive your financial decisions.

Mapalo notes that when you fall in love with a property, all common sense around the numbers can easily fly out the window. This emotional spending can lead to financial strain, especially during the first two years of homeownership, which can be really tough.

Another crucial piece of advice from the episode is to start living like a homeowner before you actually become one. By setting aside the difference between your current rent and what your future mortgage, levies, and maintenance costs would be, you can build up a financial cushion and ensure you can afford your new home. So start to live like a homeowner before you buy the home.

The episode also covers the financial implications of buying a car.

It is so important to buy a car that you can actually afford – not necessarily the flashiest one. As with buying a home, you need to consider all of the costs of running a vehicle, including insurance, maintenance, and fuel. It’s not just the monthly instalment that you need to cover. The best car is the car that you can afford.

This episode is packed with practical tips and real-life stories that highlight the importance of thorough financial planning.

Whether you’re a first-time homebuyer or looking to upgrade your car, the insights in this podcast can help you make informed decisions and avoid common financial pitfalls.

You can access various worksheets discussed in this podcast series under the Resources section.