Achieve your property dreams in 2019
Saving money for your first home is a heady experience.
You daydream about opening your front door for the first time, or spend hours plotting where to place your favourite furniture.
Save for your first property
Don’t let your daydreams mist up your commitment, use them as motivation to start saving. Firstly, figure out the size and location of your dream first home. Then, start working backwards to find out just how much money you need to save for your deposit.
Don’t get tempted to downsize your dream just yet. The more you are able to save for that deposit, the more choices you’ll have available to you when the time comes to house hunt. Don’t forget, however, that your first property purchase should be something affordable. It may also be possible for you to skip saving for a deposit entirely, or scoop up a 100% home loan from your financial institution.
Also read: Surprising factors that devalue a home
Save for your next rental deposit
Saving for your next rental deposit shouldn’t be too difficult, but there are great ways to save without breaking your budget. Open a tax-free savings account at your bank, and you can save up to R33 000 per year. Through this option, you can grow your savings, and not be forced to pay any tax on it.
Save for renovations
Renovating or upgrading your home is a great way to increase your property’s value, but the initial outlay of money can seem off-putting. Investing in your property in this way is most often not a bad idea, but make sure you use reputable service providers, and have your plans approved. Use a tax-free or fixed deposit savings account, to save money for your renovations.
Save for a future you
Simply adding R50 to your monthly bond repayments could save you so much more than you realise. That extra R50 could shorten your bond repayment term by nine months on a 20-year, R500 000 bond, provided to you at an interest rate of 10.25 per cent. It would also save you more than R25 000 in interest payable to the bank.
Use your property to make money
Renting out your investment property is a good idea, but it can take up a lot of your time. If you’re finding the process of being a private landlord a little too much to bear, consider handing over the management of your property to a reputable estate agent. Having someone on-hand and on-call to deal with the finer details can help you weed out bad tenants, ensure your property is well-maintained, and save you oodles of time that would’ve been spent sorting out maintenance issues.
• Information obtained from Private Property.
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