There’s nothing quite like the anticipation of that year-end bonus hitting your bank account. After tough times, we all deserve a good spoil.
Buyers, sellers and homeowners who can resist the urge to splurge, however, could get a lot more bang for their bonus buck this year – here’s how!
Save for a deposit
While property prices are excellent and finance has never been more affordable, first-time buyers hoping to maximise their purchase power should still plan for a cash deposit.
Buyers with a reasonable deposit tend to qualify for property finance more easily and get better interest rates on their home loans . The bigger your deposit, the smaller your loan, too. That can make a huge difference to the total interest you pay over the lifetime of your purchase.
Of course, very few of us have a year-end bonus big enough to make a decent deposit on its own. Thankfully, there are plenty of small ways you can add to those savings.
Decorate on a dime
Every homeowner wants to put their own stamp on their new home, but decorating is expensive – particularly if you’re starting from square one. If you’re hoping to invest your year-end bonus into making your space a little comfier, cosier and more “you”, you may want to wait for the January sales.
If you’re willing to pocket your bonus until then, you could pick up some real bargains.
Trawl festive season markets and thrift stores.
Newer isn’t always better. Don’t be afraid to buy preloved.
If you can’t resist new, you can also make your money go further by embracing multifunctional furniture.
Invest in your property
Homeowners and landlords can also put their bonuses to good use by investing in small improvements that add big value to their properties.
Renovations like kitchens and bathrooms may not be in budget, but adding a rainwater tank, installing energy saving fittings or even planting a waterwise garden can add real value to your property for a relatively small investment.
For even bigger returns, Leonard Kondowe says it’s always smart to invest any extra cash into paying your home loan off a little faster.
An extra couple of thousand rand can literally double or triple in value when used to reduce your total loan amount.