Times may be tough, but hold onto your property tightly

We're two months into the year and optimistic as you may be about 2024, it's not going to be without its challenges - the interest rate is high, the price of petrol is through the roof, filling a trolley at the supermarket is akin to travelling abroad, and to add insult to injury, the load shedding situation is well, still, a situation. 

"Times are tough and there's no denying that South Africans are under pressure, a condition only exacerbated by the upcoming election, and the uncertainty that it brings about. But South Africans are famously resilient and known for their boer maak 'n plan attitude to life, which is worth holding on to in challenging times," says Jan le Roux, CEO of Leapfrog Property Group. 

There are many things we can't do anything about but what we can do is look after our investments and assets as best we can and commit to doing things that promote its long-term value. This is particularly true of property, which is an investment almost guaranteed to yield returns in the long term. 

Le Roux shares his top tips for looking after your property investment in tough times. 

Stay on top on bond repayments

"Typically I would encourage property owners to over-service their bond by paying more than the minimum each month but the reality is that simply paying that minimum is already a stretch for people, so then that is enough," says Le Roux. 

Rather try to reduce expenses in other areas of your life but you don't want to default on your bond payments. "Once you're behind it is very difficult to catch up again and while the banks may be willing to negotiate to some extent it is a problem that is best avoided at all costs," he advises. 

However, life happens, and should you find yourself unable to pay your bond, make sure to act swiftly and decisively by consulting a trusted property advisor who will be able to advise and guide you to ensure the best possible outcome.

Negotiate on the interest rate

In tough times it's good to have a "every drop counts" mindset, which is why it is advisable to shop around to make sure you've got the best interest rate on your bond that you can get. 

The interest rate on your bond is a big deal as it can run into millions of Rands, but the good news is that the interest rate needn't be fixed for the full loan period. 

"Nothing prohibits you from negotiating a more favourable interest rate with your bank or even moving your bond to another bank where you can get a better deal. Remember that even a 0.5% difference in the rate has a huge impact on the total loan amount payable over the long term," says Le Roux. 

Do bear in mind though that moving the bond from one bank to another is likely to incur costs, so make sure to do the necessary calculations and assess objectively. 

Build a relationship with a trusted property advisor 

Get to know a property agent that operates in your area for if and when you want to sell. "Even if selling is not on the cards for you this year, property professionals are always more than happy to share their insights and expertise about the property market, trends and even area insights with you," Le Roux says. 

What's more, most property professionals would be happy to offer (free!) advice on whether that renovation you have in mind will add value to your property, for example. They also tend to be very well connected - as property straddles many other areas of expertise - so they're also a great go-to if you need references for lawyers, financial advisors, renovation specialists or even the best restaurants in the area! 

Enjoy and look after your property 

Property ownership remains both a privilege and a pleasure that very few South Africans can afford, so if you are one of the lucky ones make sure to appreciate this by looking after your property well - it's likely one of your key long-term financial assets. 

Don't neglect the maintenance, whether it's mowing the lawn regularly or replacing outdated cabinetry when the need arises, or giving the exterior a fresh coat of paint. 

"Taking pride in one's property means looking after it, which not only increases its potential selling price but also leaves one feeling good about the place - it's home after all and one's sanctuary from all that is tough to deal with in the world," Le Roux concludes.