The 4 property 'mistakes' that are best avoided
Category Advice
To err might be human, as the expression goes, but when it comes to property, there are some mistakes that are simply best avoided because it could cost you a lot of money, hassle and, in some cases, even heartache!
Johan van Schalkwyk, Principal at Leapfrog Roodepoort, believes there are four main things that lead to property remorse and regret. He shares his believes, and advice, below:
1. Renovating too soon
There's nothing wrong with renovating and in fact people very often buy property with the very explicit intention of renovating it. "My advice here is live in the space for a few weeks, if possible, before renovating, only because one has a different sense of a property when you're living in it, as opposed to merely viewing it while it still contains other people's things," Van Schalkwyk shares.
Take time to get a feel for the flow and the layout, understand where the best light is and figure out which rooms are best suited for which purposes before knocking down walls and the like.
It's about making sure you're 100% sure of the changes you want to make because they tend to be pretty permanent and cost a lot of money.
2. Neglecting maintenance
Maintenance is par for the course for property owners and something that one needs to keep a firm hand on.
Think about home maintenance in the same way that you think about servicing your car. It's typically something that only needs to be done once a year, and helps it to run smoother for longer. In the same way, making a point of doing things like cleaning the gutters, inspecting the roof for leaks and testing the thermostat on the geyser once or twice a year is likely to ensure your property looks, lives and ages better!
"Property issues that aren't seen to tend to snowball, and what would have been a simple and inexpensive fix when it first reared its head, turns into something requiring more time, resources and money to fix," Van Schalkwyk shares.
Regular maintenance keeps a property in good nick, which ultimately adds its resale value and overall appeal.
3. Never increasing your bond repayments
It may sound impossible but paying even just R1000 extra into your bond every month can save you thousands of Rands in interest in the long term and ultimately reduce the loan period.
Consider increasing your bond repayment whenever your earnings go out, or getting into the habit of putting a percentage of bonus earnings towards the bond.
"Your future financial self will definitely thank you for this," Van Schalkwyk says.
4. Overcapitalising
There's absolutely nothing wrong with enclosing the patio or replacing the wooden window frames with aluminium ones, but that lift in the two-bedroom duplex townhouse or the hot tub in the main bedroom may not be as appealing to the next owner of the property.
"That's definitely not to say that you shouldn't add features and extensions to the property for your own joy and convenience, merely that one should think strategically about what adds quantifiable value should you decide to sell," Van Schalkwyk says.
Overcapitalising, simply, is when improvements are made to a property beyond its realistic resale value.
One way to ensure you're not going overboard is to look at the features and average cost of similar properties in your area. This information is readily available on property listing websites, and a trusted property advisor will also certainly be able to offer some guidance and insight on the types of structural features and finishings that will add value, and those they won't necessarily.
A trusted advisor will be able to offer advice further to the above, as pertaining to market trends and insights specific to various areas.
Author: Leapfrog Property Group
