5 Property 'resolutions' for 2024 that will yield long-term rewards
Category Newsletter: Lead Article
New year, new you, right? A new year is a great time for setting goals, undertaking resolutions and generally seeking to do better.
And in the same way that we do this for ourselves (Lose weight! Exercise! Be more patient with the kids!) it is worth doing the same for our homes.
"Property is an important investment that bears looking after and setting 'goals' for. How you manage and look after that property can have far-reaching financial implications," says Giel Viljoen, Principal at Leapfrog Stellenbosch. He shares 5 simple property resolutions that are worth taking on board in 2024.
Resolution 1: Have a professional evaluation done
In 2024, get in touch with a trusted property advisor to do a professional evaluation of your property. The evaluation tells you what the market-related value of your property is, comparable to other property in the area. An evaluation typically takes the size, condition and general market appeal of the property into consideration.
Evaluations are done free of charge by most property professionals, take only about 30 minutes and are a useful tool in helping you determine what could be improved to increase the value of the property. In many instances it is also just interesting to see how the value of the property has grown, which in turn can inform your personal financial planning.
Resolution 2: Pay more than the minimum into your bond
Arguably the most important thing you can do to give your personal finances a boost, paying more than the minimum into your bond on a monthly basis can go a long way in reducing the total amount of interest payable over the bond period.
For example, paying as little as R1000 extra per month on a bond of R2 million can save you more than R500 000 (that's half a million) in interest! It's a fascinating, eye opening calculation that serves as great motivation to rather cut elsewhere and put more into the bond.
The Additional Payment calculator available on BetterBond's website is a useful tool for checking how much interest can be saved by making additional payments, either once-off or on a recurring basis.
Resolution 3: Negotiate the best interest rate
In 2024 it will also be in your best interest to ensure you're getting the absolute best interest rate possible on our bond, as even a 0.5% difference can have a significant impact in the long run.
Remember that you are under no obligation to keep the bond with the institution that first granted it. It may be that your financial position has changed - for the better - since the bond was first granted so you may be eligible for a better rate.
Do bear in mind though that moving your bond may incur costs for cancelling the bond, so make sure to take that into account as you consider this.
"It will differ from bank to bank, but many are open to negotiation, particularly with loyal and credit worthy clients, as it is in their interest to retain your business in the long run," Viljoen shares.
Resolution 4: Mind your maintenance
Commit to keep a close hand on maintaining your property - both structurally and aesthetically - in 2024. Maintenance is an important part of looking after the asset and can have a significant impact on the property's growth and future value.
Deal with issues as they arise, and make sure to not let any of it get out of hand. Fix things as they break, give the interior and exterior a fresh coat of paint every few years, keep the garden neat and tiny and make sure the electric and sanitary fittings are in working order.
There's always more that can be done, but just ensuring everything works and is neat and tidy is a great first step.
Resolution 5: Say hi to the neighbours
While not a quantifiable way to add value to your property, being nice to the neighbours can go a long way in creating the kind of neighbourhood that everyone desires.
"Most of us want to live in a friendly, safe and resilient neighbourhood and that starts with being friendly yourself, looking out for others and getting involved where you can," Viljoen believes.
Start by introducing yourself to your direct neighbours, and making an effort to chat when you see them outside, or even organising a street braai, if appropriate. You may even consider starting a WhatsApp group for sharing relevant neighbourhood news and concerns.
Author: Leapfrog Property Group
