New Year’s Resolutions for Property
Just as the beginning of the year signifies a fresh start in life and the way we live it, so too does it amplify our desire to seek out a new place to live.
Property search and sales are always at their highest as the year begins. Should you find yourself in the property market in 2019, or even if you’re only just considering buying your first home, we at PropertyFox have put together a list of things you should be considering in order to save money and protect your investment.
Luckily, when it comes to property, clearly defined goals -such as saving for a deposit or buying a first home, are easy to set. No matter then that New Year’s resolutions are notoriously difficult to keep, as you could just take on a few of our salient points instead of promising yourself that you’re going to spend more time at the gym.
Consider Buying your First Property
Maybe you’ve never bought or invested in a property of your own, if not you could consider doing so now. First-time home buyers may be presented with a golden opportunity to get on the property ladder in 2019.
Buyers need to conduct realistic research into their prospective areas to get a clear idea of what they can afford. People often don’t take property size into consideration when looking at comparable sales. This leads buyers into thinking they can afford a property based on the size or condition of the house, rather than the block of land itself.
If you are considering buying a property over the next two to three years, the time to start saving for a deposit is right now. Having a deposit increases your chances of securing a home loan and will secure you a better interest rate.
A decent money management system is fundamental to taking on any kind of debt. If you’re aiming to buy property, you really need to set goals around your spending habits and your saving habits.
Fix the Repairs Needed Around the House
As a property owner, you may have spent 2018 avoiding small maintenance issues, electrical repairs, dripping taps, a cracked lintel. With the new year comes a new outlook, making it the perfect time to fix what’s broken. A house is an investment after all, just like any other.
And so to protect your investment, one must keep it in the best condition possible.
A decent money management system is fundamental to taking on any kind of debt.
At no time is this more relevant then during the run-up to going on the market. Keep the interior and exterior paint work fresh, fix any electric, plumbing or structural problems as soon as they come up, pay attention to rising damp and leaky roofs, and make sure that the garden or exterior spaces are maintained.
Consider Purchasing an Investment Property
Buyers who want to get on the property ladder but find themselves priced out of the suburb where they rent, may benefit from “rentvesting” – purchasing an investment property where they can afford so they can build equity while renting where they want to live.
Some people have this perception that they need to either buy their dream home right now, or never at all, but there are other options. Purchasing an investment property may be more straightforward than buying a ‘forever home’.
Pay More into Your Bond
If you have an existing bond, aim to pay a little (or a lot) more into your bond than your specified monthly repayment. Paying extra into your bond reduces the interest that you must pay. Even just a few extra hundreds rands can shave years off the term of your bond, due to the thousands you would shave off the total repayment figure.
Once-off lump sums like inheritances or bonuses converted into bond account deposits will also significantly reduce your total repayment figure.
If you are looking for a sound R.O.I. then participating in the property market is one of the best decisions you can make. With this in mind, start 2019 ‘Property-ly’!
At PropertyFox, for more insights into how your property value compares to active sales for your area, get in touch with our team, who will provide you with a super insightful, and free Property Valuation!