The thing about setting goals at the beginning of any New Year, is being able to stay the course, despite the unknown challenges ahead. If money or an asset acquisition is one of those goals, it’s best to define exactly what that goal is before determining how much money you need to realise your dream.
Property goals are varied. They could relate to buying a home, be that to upgrade, downsize, or a first property acquisition. You may have a goal to renovate your property or buy a second one as an investment.
Whatever the property goal is, know that it is usually your financial status that will dictate how much capital you need.
One of the terms relative to goals is the SMART goal format. It refers to a specific, measurable, achievable, relevant, and timely strategy. If you follow this list in order, you will have a clear picture of how to adjust your finances to suit your anticipated budget for your property purchase or renovation.
Planning is at the top of the list, confirms RE/MAX of Southern Africa, when the goal is to purchase a home in 2025.
Here is the agency’s recommended step-by-step strategy that you could use:
Develop a strict financial plan
Set realistic goals with clear timeframes.
Analyse current income, investments, and create additional savings schemes to secure the required funds.
Consult with a financial advisor for expert guidance.
Obtain home loan pre-approval.
Contact BetterBond, South Africa’s leading bond originator to get pre-approval on home finance.
Knowing how much you qualify for helps you set a realistic budget.
Explore available National Housing Subsidy Programmes, like First Home Finance, for financial assistance.
Partner with a local real estate professional for expert advice.
Focus on properties within your budget and desired criteria.
Leverage an estate agent’s knowledge of available listings to streamline your search.
Stick to your action plan
Stay disciplined and committed to your savings plan.
Set attainable goals and take consistent steps toward homeownership.
Maintain focus and determination to turn your dream into reality.
You should also add to this list, the need for an emergency fund. This fund safeguards you against having to dip into your dedicated home acquisition savings if an unforeseen financial cost should arise.
Stay the course
It is never easy to stay on a course when in comes to finances. There are three aspects that you should be focused on: financial security; financial independence; and financial freedom.
- Financial security means you have enough income to cover your monthly living costs.
- Financial independence means you can maintain your current lifestyle.
- Financial freedom is when you have enough money to live your dream life.
One of the ways to keep on track is to set aside a time weekly, when you can evaluate your progress. You need to reflect on how much you have achieved or put aside, where you may be able to improve, and whether you need to adjust your financial target, upward or downward.
Buyers advice
Adrian Goslett, CEO of RE/MAX Southern Africa says that buyers, and those who wish to renovate in 2025, need to analyse their current income as well as their investments “and set up additional savings schemes that will ensure the procurement of the funds needed to obtain their goal within the desired timeframe.
“Meeting with a financial advisor can be helpful in this regard,” Goslett suggests. “The next step would be to get in touch with BetterBond, South Africa’s leading bond originator, to acquire pre-approval for a home loan. A bond originator will determine the amount for which a buyer qualifies. This will prove helpful when setting up a budget for the house hunting process.”
First time buyers have a great advantage as there are a number of housing subsidies that are in play. Bank advisors can assist new home owners to explore these, which will go a long way in reducing the initial costs of homeownership. This exploration should be done early in the year, as it may dramatically impact on your budgeting.
Goal met?
Once buyers are ready to begin the house hunting process, Goslett recommends that they reach out to a local real estate professional who can guide them in the right direction in terms of where to look for homes that are within their budget. “Real estate professionals also know the available stock on the market and can therefore advise on the likelihood of finding a home that meets the buyer’s search criteria before the year is out,” Goslett explains.
