Small differences mean big savings

BY BONNY FOURIE bronwyn.fourie@inl.co.za

A bathroom that buyers can imagine themselves relaxing in will help sell your home.

Shop around when seeking a home loan – and see how much you can profit over the lifetime of the bond

Q: I have heard that I need to shop around for a home loan in order to get the best interest rate. I have also been told that the higher my deposit, the better my interest rate offer will be. The rates seem to differ in many cases by less than a percent, so how much difference can this really make?

A: By way of example, BetterBond was able to secure an average interest rate reduction of 0.61% (below the prime rate of 7%) for their clients in the last quarter of 2020. To put that into real terms, if your bond was R2 million, you would save R174 000 over the full 20-year term or R725 a month.

Based on a R2m bond over 20 years, here is a breakdown of the monthly repayments and savings based on different interest rates:

Interest rate Monthly repayment Total repayment Saving

7% (prime) R15 506 R3 721 434 N/A 6.83% R15 302 R3 672 612 R48 822 6.66% R15 100 R3 624 108 R97 326 6.49% R14 840 R3 575 926 R145 508 6.39% R14 782 R3 547 734 R173 700

The good news story of lower interest rates and improved affordability is starting to spread and we believe that even more home buyers will apply for bonds before the repo rate starts its gradual increase towards the end of the year, or even next year. – Carl Coetzee, chief executive of BetterBond

Q: We are not planning on living in our home forever and will probably sell it in about two or three years’ time. We want to start upgrading it slightly now in order to get the best price for it when we sell. What areas should we focus on improving?

A: It is important to consider the risk of over capitalising on your property and to really consider the features that will increase your property’s value, should the time come that you want to, or need to, put it on the market.

Upgrades, refurbishment, and makeovers can be a valuable investment choice but beware of over-capitalising. That said, carefully considered improvements to increase your property’s value will win the hearts and hard-earned buying power of your future buyer. Here are some key features to consider:

• Kitchen: Other than your bedroom, this is the place you will spend most of your time. When people can visualise themselves cooking and entertaining in a space, they fall in love with the property.

• Bathroom: This is your retreat from the world – where you can get away from it all and relax. Like a kitchen, if your potential buyers can see themselves there, they’ll be more attracted to the house and willing to pay the asking price for it.

• Patio and garden: South Africans love to drink coffee, braai and spend time outdoors. A well-kept garden and patio facilitates this lifestyle.

• Pool: Investing in a pool is often a double-edged sword, because while a lot of people do like pools, many people do not. Most often, it is attractive to have a pool in areas/ suburbs that attract families.

• Garage: Putting in a garage is an investment worth considering, as it’s a place that will protect cars from the weather and also provides storage space.

• Security features: These, or the lack thereof, can make or break a sale. Decide on what alarm systems, motion detector beams, security gates, outdoor lighting and/or surveillance cameras you have, or need, and make sure they work. – Marcél du Toit, chief executive of Leadhome

Q: We have a holiday home we are thinking of selling. When is the best time to put it on the market or at least test the waters?

A: South Africa’s moderate climate means that properties can be showcased throughout the year. That said, it is always a good idea to market your holiday home during holiday periods, such as the Easter, July or Christmas holidays when people take extended breaks and there is an influx of people into your area. Coastal towns, like Margate and Struisbaai, are examples of towns where the holiday season brings significant numbers of visitors. – Paul Stevens, chief executive of Just Property

Q: We have sold our home and will be moving in the next few weeks. How can we best prepare the children for this move? Already they are not happy about moving away from their school and friends.

A: Moving house is a big upheaval for the entire family but it can be particularly stressful for youngsters. A good idea is to call a family meeting to explain the upcoming changes to their lives, which gives you the opportunity to address any questions or concerns well before the time in an environment where the children feel secure and supported.

It’s essential to explain that all the key aspects of their lives will stay the same and that all the familiar contents of their current home, especially what’s in their bedrooms, will be moving with you.

You should also, as far as possible:

• Stick to normal routines: Try to maintain as many of your old routines as possible like family meal times, regular bedtimes and activities such as game nights.

• Scout the new area before the move: If possible, take the family for a drive to visit the new home before the move. In addition to showing them their new home you can point out the positive elements of the new area and the exciting new opportunities that await them.

• Involve the kids in the process: Make them responsible for their own rooms and allow them to pack their own things and decide where they want to put everything in their new rooms.

• Plan a fun activity for the arrival: Once the move is over, and everyone has arrived at the new home, take the time to do something fun together like go to a restaurant for a meal or spend an hour in a nearby park with the dogs and a picnic. – Natalie Cooper, area specialist for Lew Geffen Sotheby’s International Realty in Kommetjie