New year's real estate resolutions
Category News
The start of a new year is a great opportunity to start doing things differently and to make resolutions about improvements you can make in various aspects of your life. When it comes to your property-related resolutions, this may mean making this the year that you save for a deposit towards buying your own home, undertake renovations or improvements to your existing home, buy a second property or simply pay a little extra money into your bond. Jawitz Properties takes a look at some of the real estate resolutions you can make this year.
Resolution 1: Saving for a deposit for your own home
Tough as it may be to save money, there are probably several areas where you could cut back to enable you to start saving to get into the property ladder. If you're currently renting a home, consider renting a smaller property or one in a more affordable area and putting the money you save into an interest-bearing savings account. Look at your current lifestyle and consider areas where you could cut back. This could mean eating out less, cutting back on non-essential shopping or looking for ways to save on monthly expenses.
While not essential, it is recommended that before you start looking to buy a property, you have a deposit of at least 10% of the value of that property saved up. Having a deposit shows the property seller that you are a serious prospect. It also shows the banks considering your home loan application that you know how to manage money. You can check out the remarkable difference that having a deposit can make to your monthly home loan payments and overall home loan debt using ooba's range of calculators.
Resolution 2: Renovating or improving your home
If you're thinking of doing renovations, it's important to know what changes you can make to maximise the value of your home. Renovating the kitchen is one of the home transformations likely to help sell your property when the time comes, but it's also one of the most expensive areas of your home to renovate. Consider using flat-pack cupboards as a cost-saving measure or updating your splashbacks with new tiles for an instant and affordable new look. Another great renovation idea is to replace fixtures like doorknobs, cupboard handles and taps.
Bathrooms can be another great area of your home to spruce up. This can be done the affordable way by keeping all your fixtures in their current position to avoid changing the setup of your plumbing. Giving the walls a fresh look with some mould-resistant paint or tiles, putting in an extractor fan and resurfacing the bath are all great ideas that will give your bathroom the new look it deserves.
Resolution 3: Buying a second property
If your finances allow, expanding your property portfolio can be a great 2022 resolution. There are various factors to consider when buying a property to rent it out. The first of these factors is location. The better the area your second home is in, the more attractive it will be to great tenants. If you're considering buying in a sectional title scheme, think about the advantages that fibre internet, a swimming pool and an efficient body corporate could bring you. Always enlist the help of a Jawitz #RealPartner to ensure that you're paying the right price for the property and that your new investment will be easy to rent out.
Resolution 4: Paying extra into your bond
The biggest benefit of paying off your home loan early is that you will be paying it off for less. By paying your bond off quicker, you can exponentially reduce the amount of interest that you pay to the bank. Even paying just R1 000 extra into your bond every month can make a significant difference. Ooba's extra payments calculator will show you just how quickly you can shave years off your remaining home loan with extra payments.
As is the case with any new year's resolutions, the most important thing about your property resolutions is that you stick to them. If you need any advice or encouragement along the way, get hold of us and have a chat.
Author: Jawitz Properties
