There’s no doubt owning a home is a popular South African aspiration. Securing a bond is one stepping stone along the way. To do this, you need to improve your financial standing. Seeff shows you the best ways to pay off your bond without breaking the bank.
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Start with the end in sight
Giving yourself a deadline for when you want to achieve paying off your bond will help you prioritise getting it done. Knowing that financial freedom is in sight will motivate you to be consistent with payments and may even encourage you to move faster toward the finish line.
Using a bond repayment calculator is an excellent way to clearly indicate the required amount you will need to pay toward your bond each month. This will allow you to plan for future life events and ensure you have the funds needed for your plans.
Use extra cashflow
Whatever additional money you receive from your job should go toward your bond repayments. Treating it like a savings account will hold you in good stead in the time to come. You won’t need to compromise on a comfortable lifestyle when you’re consistently paying off your bond at a steady rate.
For those who experience a balanced cost of living, this will serve as a solid financial decision. However, if your income cannot support increased bond payments then you may need to practice patience in paying off your bond at a rate you can afford. Going into added debt is never the solution.
If possible, it’s ideal to create ways within your job to generate a higher income. Work extra hours, commit to training newer staff or offer your skills to colleagues after hours for their own businesses. Thinking outside the box will be your ticket to success in paying off your bond quicker.
Step up your side hustle
Whether you want to qualify for a home loan, get out of debt, upgrade your lifestyle or pay off your bond quicker, it’s a good idea to have multiple sources of income. In addition to your job, you can capitalise on skills you have during weekends or after hours by freelancing or starting your own small business. Every bit counts when it comes to finances and you can make a significant dent in your bond repayments by simply earning 10%-15% more each month.
From baking and selling cakes to offering your academic expertise, you shouldn’t pigeonhole your income in order to achieve maximum financial results. With the popularity of Airbnb stays, you can also rent out a section of your property and earn an income that goes toward your bond. Effectively, this enables your property to pay for itself.
You can also rent out your entire property while living in your current home or stay with friends and family while you save towards paying off your bond. This will ensure a stress-free transition into your new home with your finances in order.
Pay lump sums
Whenever you save a higher percentage of funds, pay it toward your bond. Using your tax refunds or your bonus from work is a good way to do this. An alternative would be to use an inheritance you have saved or sell a family heirloom you no longer have use for. What better way to honour your generation than investing in a home?
Owning a home lets you tell your story
Express your individuality, success and style throughout life by purchasing your dream home. Seeff has a range of properties in sought-after, secure neighbourhoods across the country. Our expert property practitioners offer in-depth advice on every stage of your homeownership journey. From paying off your bond to decorating your living room, cover all your bases with Seeff today. Contact us to view our latest listings.
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