Tips on keeping afloat after buying your first property

Buying your first home is one of the most exciting times of your life, but there’s no denying the stress factor of such a huge financial commitment.

With those monthly payments looming, having any extra cash in the bank might seem like a distant dream, but with a little work and a lot of creativity, it could be easier than you think.

“A lot of new homeowners struggle with the financial side of owning a property,” said Bill Rawson, chairman of the Rawson Property Group, who shares some of his top recommendations.

Cut back on small luxuries

Cutting back on little luxuries can save a surprisingly large amount of money.

“People are always surprised by how much they can save by doing simple, everyday things like taking a packed lunch to work,” he said.

Budget your social life

It’s not just edible luxuries that need reassessment, socialising can also be very expensive these days, particularly if you have costly hobbies or like to party at the trendiest spots.

Get rid of unnecessary expenses

By the time we reach a home-buying age, most of us will have signed up for our fair share of contracts and accounts not being used to their full potential. This means you end up spending far more than you are getting back.

Turn your hobbies into income

If you’re already saving everything you can, it’s time to consider earning a little something extra, and the easiest way to do this is to monetise an activity you already love.

“Home industries and after-hours freelancing are becoming more and more common, and both can offer very viable sources of additional income.”

Use your property to earn cash

By renting out space on platforms such as Airbnb, or taking in a permanent lodger or housemate, it is possible to use your property to generate income that can go towards its upkeep and expenses.

Rawson said the biggest thing for new homeowners to remember was that even if money was tight at times, your property was a valuable asset that was worth sacrificing for, every now and then.

Source: Press release from Rawson Properties/www.rawson.co.za.

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