4 property mistakes to avoid
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4 property mistakes to avoid.
It's one thing to paint the exterior of your property in the pantone color of the year but quite something else to install a hot tub in the middle of the living room on a whim. The point is that some property 'mistakes' cost you more in the long run than others.
This according to Steven van Rooyen, Principal at Leapfrog Milnerton, that over the years he has noticed a trend around the property decisions people most acutely regret and that they can be condensed to four main points.
In the spirit of learning from others' mistakes, Van Rooyen shares four property mistakes to avoid, or rectify right away.
Mistake 1: Never increasing your bond repayments
Paying as little as R500 a month extra into your bond can make a noteworthy difference to your finances in the long run by shortening the bond period.
"Another good approach is to commit to increasing your monthly repayments whenever your income increases and/or whenever you are paid commission, a bonus or similar to put a percentage of that money towards your bond," Van Rooyen advises.
A bond is a great savings vehicle and it pays to view it as such.
Pay more to save more
Andrea Tucker, Director of MortgageMe also suggests that anything you save, if possible, should be diverted into your bond repayments.
"Adding a little extra each month can make a significant difference and reduce your bond period and/or instalments. By paying more every month, or even whenever you can, you may also be able to release cash amounts through your access bond facility.
"A good idea is to set up a recurring transfer out of your account on payday into a savings account - and then transfer that across to your bond at month end. If its not there from the beginning of the month, you probably won't miss it," says Tucker.
Mistake 2: Not prioritising regular maintenance
The short of it is don't wait until something breaks before you take care of it. Whether a small roof leak, a crack in the wall or a missing hinge on a kitchen cupboard, deal with maintenance issues as and when they occur, rather than allowing it to pile up.
"It's far easier - and cheaper - to deal with things as they crop up than to wait until it turns into a scenario where the whole ceiling has to be replaced," says Van Rooyen.
Home maintenance is not unlike servicing your car. It's something that has to be done at regular intervals and is ultimately about ensuring the longevity of the vehicle and the safety of its occupants. Same with property - it's nice to occupy a well-maintained property. And well-maintained properties tend to enjoy a higher value in the market.
Seasonal checks
1. Summer
Summer in the Western Cape, with its dry, sunny days is the perfect time to check your roof and repair any cracks to ensure your home is leak-free when the winter rains come. This is also the ideal time to damp-proof your walls and repair any damage already caused. Damp marks on ceilings are indications of roof leaks and bubbling and blistering paint is a sign of damp.
External walls, doors and windows must be regularly checked - cracks should be mended and wood treated and varnished to avoid rot, which leads to contraction and inevitably to leaks.
March is a good time to cut back overgrown trees to minimise the chance of falling branches and resultant damage to your buildings and property during winter storms.
2. Autumn
Clear your gutters regularly during late summer and autumn months when dry leaves accumulate, and ensure that down pipes are unblocked and draining properly. Sagging gutters must be repaired.
Have your chimney cleaned and your fireplace serviced, particularly if it is a wood-burning stove. The same is true for a gas fire.
3. Winter
This is the perfect time to prepare your garden. If you're going to invest in your garden, consult with a landscaper who will assess your soil and the positions available in your garden.
A well-researched and thoughtfully landscaped garden will mean a significant saving in money and time in the long run. Planting the wrong plant in the wrong location either results in a failure to thrive, huge plants which cover the windows of a house and block out light, or trees with roots that buckle brickwork and paving.
4. Spring
Spring is the ideal season to paint your home. This is also the time to discard rusted or 'beyond repair' items such as garden furniture or awnings damaged by wind and rain.
Boreholes should be serviced annually in spring. Maintenance of the pump and fixtures can help to prolong the life of certain borehole components. The same is true of garden irrigation systems.
General
Attend to loose or creaky timber floors, as these can be an indication of a faulty or dropped sub-floor structure.
If you install new electric fixtures such as remote-controlled gates or garage doors or an electrified fence, ensure you receive a certificate of compliance from your electrician. The same is true for gas installations.
Plumbing
Drains should be cleaned regularly in order to avoid blockage. Check your water meter and your rates bills and if you suspect a leak, it pays to have a qualified leak detector do a thorough check and repair the problem in order to save in the long run.
Do it yourself
Save money by doing minor repairs yourself obviously depending on your comfort with a hammer and drill.
Regular home maintenance is key when it comes to trying to sell your property as it can be tremendously stressful when you have a huge amount of costly repairs which have accumulated during your occupation.
"Even a dated property will sell if it's neat, but in the current market, you have to be a step ahead of the buyer, and this means eliminating the need for repair," says Greeff.
Mistake 3: Renovating too soon
Even if you know exactly how you want to renovate a property, consider spending at least some time in it before you bash down that first wall.
It's not always possible but it you can live in the property for at least three months to see how you move in the space, where the best light is, which rooms are suited for which purposes, and the like, before you undertake renovations that cost an arm and a leg and that might not be 100% what you want.
Mistake 4: Overcapitalising
Property professionals are often asked by clients at what point an addition or renovation to a property crosses the overcapitalisation line.
"There's no one-size-fits-all answer but it depends on your long-term goal with the property. If you're looking to put the property on the market in the next three to five years then spending 25% of the value of the place on a kitchen renovation could qualify as overcapitalising. But if you're committed to the property as the home where you will raise your family and grow old then spending that amount of the kitchen is more about your own comfort and preferences, and thus 'worth it," Van Rooyen explains.
A good rule of thumb is to look at the features and average cost of similar properties in the area. Similarly, a trusted property advisor can assist with an informed opinion about additions that add value that will reflect in the selling price.
Author: Property 24