Here are four challenges you are likely to experience as a homeowner, and ideas on how to tackle or prepare for those.
Repairs and maintenance
Most aspects of your home require some form of maintenance, from your household appliances to fixed items like walls, taps and floors. In some cases, such as with air-conditioning units, you will be best served by scheduling a professional service. An annual maintenance check, should also be undertaken, which includes a deep scrutiny of every aspect of your home, from roof to floor (checking for rising damp inside and outside which may indicate a leak somewhere), through to light switches or dripping taps that often simply require a new washer. Taking preventative measures or fixing items as they become evident will avoid a breakdown or failure.
Best tip: Put aside an amount per month for unknown and known maintenance and repair jobs. Even if just R150 a month, you’ll have some money to ease the shock of costs to repair large problems. If you add this to your home loan repayment and don’t use it, you will be increasing the equity in your house in the long-run, potentially being able to reduce your home loan repayment in the future, or even being able to access the excess in an emergency.
Insurance
It is always a good idea to annually compare insurance quotes, be those for the contents of your home, or the home itself. You also need to update your policy to ensure all new items or renovations are covered, and those that are no longer with you, are removed. If the effort required may seem burdensome, seek an insurance broker who can do the legwork.
Best tip: There are insurance service professionals available online, who will provide you with a number of quotes from different insurers. Also bear in mind, that no two insurance policies are created equal, and that the cheapest option may not be the best for your needs. Always read the fine print.
Maintaining property value
The price you paid for your property should, ideally, increase in value over time. However, if you do not maintain the property and it is evidently not up to the standard of other similar properties in your suburb, you may lose significant value. Sometimes simply painting your home in a new trendy colour, or changing doors can make a huge attraction statement. Other more expensive additions may be replacing windows with more modern designs, or refreshing old paving. Don’t forget the roof as this is usually something that can be seen from the curb. Also bear in mind the cleanliness factor; clearing away rubbish and eyesores can truly be transformative.
Best tip: Paint the exterior at least every five to eight years (or according to the paint manufacturers specification), and preferably use a neutral colour. Take a drive around the neighbourhood noticing what appeals to your eye from an attraction perspective, and attempt to copy the look and feel.
Costs of homeownership
Most aspects of homeownership are costly, be that the aforementioned maintenance or insurance, but also annual increases in rates, and your water and power consumption, as well as levies if in a Section Title scheme. There will always be some financial uncertainty when it comes to homeownership, such as an interest rate increase or decrease, which will affect your home loan repayment. All your home comforts, such as having a landscaped garden, swimming pool, and built-in braai, contemporary furnishings etc, should be considered and evaluated according to market trends.
Best tip: Become a master budgeter, anticipating annual increases across all your monthly household expenses. Stick to your budget limits by including an emergency fund that will cater to the unknown future challenges.
OVERALL best tip: Develop a relationship with a professional estate agent, who will be able to guide your decision-making relative to homeownership, even if you are not ready to sell your property. Property practitioners are familiar with property values in your area, and known what pull cards attract the most interest. And, you never know, you may even get an offer you can’t refuse.
