Your 2020 Property Goals

Article Courtesy of Private Property 
Author Cath Jenkin • Dec 9, 2019

What are your 2020 property goals? Let's help you plan towards achieving them during the fresh new decade, coming right up.

Saving for rainy days

Well, at the end of 2019, we looked upon our land of load shedding and potential junk status and thought “Mmmm, now might be a good time to start saving and eradicating our debt.” If your 2020 property goal is related to saving money, we’ve got a bunch of recommendations for you, to help you set goals and then achieve them.

You’ve got the power

If your children have been doing homework by candlelight this year, or you’ve caught yourself having four braais a week because the lights are out, your first 2020 property goal should be this: save for an alternative energy source. Whether that be a generator suitable for your home, a UPS so you’ll at least have Internet connectivity even if the lights are out, or a bigger plan like moving your home over to solar power, we have just one recommendation: do it. The light at the end of our energy worries tunnel is definitely flickering, so making a financial investment in sorting out alternative power sources for your home is a must. The big bonus here, of course, that should you wish to sell your home in the future, an alternative power source will be highly attractive for potential buyers.

You’ll need the water

As I type, Gauteng is experiencing flooding, and KwaZulu-Natal has just experienced serious rainfall. But, don’t be fooled: much of the country is experiencing drought conditions and, as climate change makes its mark across our land, water woes will be returning for many of us. Saving up for a water tank is another excellent 2020 property goal, and again, another feature that could make your home doubly attractive to interested buyers.

You need to save for your 2020 property goals

If you’re looking for different ways to cut back on your debt, so you can redirect your money towards saving to achieve your 2020 property goals, now’s the time. The debt snowball method is a clever way to do this, and one that’s shown great results for many people. The debt snowball method works like this:

• Make a list of all your outstanding debts, and order them from smallest to largest. Include your credit cards, retail accounts, and any credit arrangements you may have.
• Then, work out your monthly budget (yes, we know this hurts, but it’s going to sting less in the future) and calculate a figure for what you can afford to pay towards your debt.
• After that, take the full amount of your debt payments, and allocate the largest payment towards your smallest debt. For the rest of your debts, pay the minimum amount per month.
• This will take you to a place where your smallest debts get paid off first. Well done, you’re making good progress towards achieving your 2020 property goals!
• Once a smaller debt is fully paid off, you then apportion what you were paying on it to the next debt on the ladder. You’ll soon find that you’re taking great strides in paying off your debt and, as you finish paying off one debt, you move quickly on to paying off the next debt.

• Once your debt is paid off (yes, it’s possible!), you’ll have automatically adjusted to having set aside a substantial amount of money each month. And that’s when you…

• Open a savings account. We recommend a tax-free savings account, or another type of investment account, that’ll give you the opportunity to save regularly, and enjoy great returns.

• At this point, you and your budget will be so well adjusted to setting money aside that you won’t even notice you’re quietly enabling yourself to reach your 2020 property goals.

If you are aiming to save for a rental deposit, or a deposit on a new home you’re looking to purchase during 2020, cutting down on your debt is a great way to make that 2020 property goal suddenly very doable.

Pick your investment property wisely

There’s always lots of talk around the dinner table about what a good investment might look like. There’s no two ways about it on this one: property is always a good choice. If your 2020 property goals include finding a good investment property, you’re definitely making a wise choice. The affordable housing market in South Africa is booming and it’s a good time to get in on that share of the property market. Many of the homes that fall within the affordable range - priced between R250 000 and R500 000 - are currently regularly selling at 5 or more percent above their asking price. Moreover, properties like this are selling quickly, staying on the market for just 6 weeks on average, in comparison to more expensive properties who remain on the books for, on average, 13 weeks or more. If your 2020 property goal is to buy a new investment property, scroll your thumb over to the property search filter and click “lowest price”. Your next financial victory could be there!

Changing it up in 2020

If your 2020 property goals relate to your current home, and you’re thinking about renovating, expanding, or reorganising your home, then you’re definitely on the right track. Improving your home only serves to increase its value and attractiveness for interested buyers, so don’t hold back when you want to repaint, renovate, or change it up in 2020. If you are looking towards renovating in 2020, we recommend:

• Finding eco-friendly additions to your home: Environmentally conscious buyers make up a good portion of the buyer market, and any eco-friendly features of your home could set it apart from the pack.
• Technology-backed features for your home: If you’re contemplating installing Internet-enabled fittings or features into your home, we’d recommend it too. Everyone loves a little of the future inside their home, so yes, those lights you switch on and off over WiFi are a great idea.

As we look ahead to a fresh new decade, we hope you’ll achieve every single one of your 2020 property goals.