Buying a home is a lot like falling in love – it requires a substantial investment that can be challenging but is also incredibly rewarding. Carl Coetzee, CEO of BetterBond, considers five ways to fall in love with home ownership.
Probably one of your longest relationships, here’s why your relationship with your own home could also be one of the most fulfilling:
- Property has proven to be a safe investment option. Investing in bricks and mortar provides a tangible asset that yields favourable returns over the long term with comparatively low risk, even during challenging economic times. Although house price inflation could be below inflation this year – Lightstone has forecast three possible scenarios for house price inflation this year, based on GDP growth and Consumer Price Index (CPI) and core inflation – there will be pockets of opportunity with some areas showing comparatively strong house price growth. If the economy recovers sufficiently, Lightstone expects a national house price inflation of 3.7% towards the end of the year. However, should growth stagnate, we could see a house price inflation of just 0.9%. The mid house price inflation scenario sees house prices increase by 2.3% for 2024.
- Your home can be a source of additional income. Homes in sought-after areas – close to schools, transport nodes or popular amenities – are in demand, so an investment in a buy-to-let property in one of these areas could offer a stable source of income. With pre-pandemic interest rates, hesitant aspirant buyers may choose to remain in the rental market until interest rates stablise, thereby increasing rental demand. Another income-generating option for your home is to make it available as an Airbnb. The company recently reported that South African Airbnb hosts collectively earned more than R100 million in nine months in 2022. The November 2022 report from Airbnb notes that hosts are using their earnings to cover costs, from school fees and bond repayments to everyday essentials.
- If you have the financial means to invest in a solar solution that includes a battery and inverter, your home could provide uninterrupted power during ongoing load shedding. Some of the major banks, such as FNB, have the option to apply for a solar energy loan with your new or existing home loan. This can cover up to 15% of your property value to fund the system’s installation. Investing in solar could also increase the value of your home, with experts saying it pushes up your home’s value by upwards of 3%.
- Your home could be a hub for family. We have seen an increase in multigenerational living as families share accommodation as a way of dealing with rising living expenses. An estimated 30% of South African households are multigenerational. Not only does it make financial sense to distribute the financial load of owning property among family members, there are many other benefits of having family members close by. Older family members can help look after younger grandchildren, while having children around will give retired grandparents a sense of purpose. There is added peace of mind in knowing that there will always be someone at home.
- Aside from the financial rewards, owning your own home has many emotional and psychological benefits. Research points to the ‘benefits of place attachment’ that come with calling a home your own. When you own your home, you are more likely to set down roots and establish connections within your neighbourhood or community. This sense of belonging can be very fulfilling.
