Adjusting to the responsibilities of homeownership

15 September 2020 | Life Style

You’ve taken the leap: Bought your first home!
And now suddenly reality has hit…
The truth is new homeowners are likely to go through a period of adjustment as they familiarise themselves with the responsibilities of homeownership, says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
The first responsibility that new homeowners will need to get used to is that the ongoing maintenance costs that used to be at the landlord’s expense, will now be you responsibility.
“Many new homeowners fail to plan for emergency expenses that crop up with property ownership, which makes it difficult for them to afford the repair work when things break unexpectedly. To avoid this, homeowners should have a readily available savings account that they can access in case the geyser bursts or the roof starts leaking, and this needs to be seen to this immediately,” Goslett recommends.
Similarly, new homeowners will need to pay attention to interest rate announcements as these will have a direct impact on the interest charged on their home loan.
“New homeowners will need to listen out for these announcements so that they can plan for the new instalment on their home loan should the prime lending rate change. Especially now that interest rates are at an all-time low, I would recommend purchasing well within your budget to leave room for future interest rate increases,” Goslett advises.
Those who are used to having the flexibility of being able to relocate after living out a couple months’ notice will also need to get used to the financial responsibility of being locked into a home loan for the next twenty to thirty years.
“The financial consequences of defaulting on your home loan repayments can be way more severe than if you skip a month of rent. Especially during these uncertain times, homeowners need to be prepared for this responsibility before they make a purchase they will later come to regret,” he cautions.
Beyond these new responsibilities, Goslett reminds first-time buyers that homeownership also comes with a host of new perks. “As a tenant, the possibility of annual rent escalations loomed ominously above your head. Now, as a homeowner, the reality of annual house price growth is a nice incentive to keep up with the repayments on your home loan. Unlike rent, each monthly instalment on the home loan is a further investment into your future wealth. If you have planned correctly for the responsibilities of homeownership, it will be an easy transition for you to make and you will soon start revelling in the benefits of homeownership,” Goslett concludes.

Similar News

 

Shrink your carbon footprint – here’s how!

1 week ago - 08 September 2020 | Life Style

Covid-19 has awakened the world to how quickly we can change our behaviours when confronted with a crisis that threatens our very existence. Yet, once...

Save time when house-hunting online

2 weeks ago - 03 September 2020 | Life Style

Today’s technology streamlines the house-hunting process to help buyers sift through the hundreds of listings available and narrow down the options. When buyers complement the...

Spring clean to reduce the stress of lockdown living

2 weeks ago - 01 September 2020 | Life Style

Café coffee has been replaced by a countertop coffee pot and commuting to work means going from bedroom to kitchen. Spending more time indoors right...

Moving? Do so safely

3 weeks ago - 27 August 2020 | Life Style

Moving homes can be a physically draining task. Deciding to make use of a professional moving service can eliminate a lot of the hassle and...

Peaceful dreams

3 weeks ago - 25 August 2020 | Life Style

The countless sleep monitoring and wind down apps currently available paint a worrying picture of the health of our sleeping habits. With our high-powered lifestyles,...

Staying stylish

1 month - 20 August 2020 | Life Style

Well-designed kitchens and bathrooms are invaluable assets to sellers as most buyers will consider these rooms to be either the deal breaker or a deal...

New beer on the Horizon

1 month - 19 August 2020 | Life Style

Namibia Breweries Limited (NBL) introduced a new non-alcoholic flavoured beer - Horizon, available in three flavours.According to NBL’s Global Marketing Manager, Rene Duffy, “Horizon broadens...

Upgrades and new trails at Farm Windhoek

1 month - 13 August 2020 | Life Style

The IJG Trails on Farm Windhoek are undergoing some changes that the team there is very excited about.According to Peter van der Merwe, these changes...

Create your ultimate home theatre

1 month - 06 August 2020 | Life Style

Lockdown has caused the re-emergence of drive-in cinemas and increased the demand for at-home theatres.According to Adrian Goslett, Regional Director and CEO of RE/MAX of...

Buying a house on a single income?

1 month - 05 August 2020 | Life Style

While many might think it impossible to purchase real estate on a single income, Lightstone Property reports that single females make up the largest portion...

Latest News

Qatar also heading back to...

2 days ago - 17 September 2020 | Transport

Come 15 October, Qatar Airways will be flying to Windhoek three times a week again.The announcement came earlier today, and follows the decision by Eurowings...

Sen Pang leads UN Namibia

2 days ago - 17 September 2020 | People

Sen Pang, the newly appointed United Nations Resident Coordinator in Namibia, was received at State House, where he handed over his Letter of Credence and...

Informal market coming for Havana

2 days ago - 17 September 2020 | Infrastructure

Windhoek mayor Fransina Kahungu said the city received a pledge of N$5 million from the ministry of industrialisation, trade and SME development to help build...

Eurowings makes a Namibian return

2 days ago - 17 September 2020 | Transport

Eurowings will resume their Frankfurt-Windhoek route this weekend, with the first flight landing at the Hosea Kutako International Airport (HKIA) on Sunday.In a media statement,...

Another Air Namibia resignation

2 days ago - 17 September 2020 | Business

The national airline’s chief financial officer Werner Schuckmann has tendered his resignation with effect 30 September 2020.The process to recruit a substantive chief financial officer...

Card fraud on the increase

2 days ago - 17 September 2020 | Opinion

Windhoek • Riaan ViljoenDuring the lockdown, a whole new generation of users discovered the joys and convenience of online shopping.Worldwide, online debit or credit card...

Masking Namibia

2 days ago - 17 September 2020 | Social Issues

Local social impact agency, Arba Stature, in partnership with Namibia Breweries Limited (NBL) donated 2253 face masks to 25 schools through its #CoverNamibia campaign.Designed to...

GIPF says investments safe

2 days ago - 17 September 2020 | Economics

The Government Institutions Pension Fund (GIPF) said that it is aware of the de-registration of the Baobab Capital (Pty) Ltd (the fund manager) and Baobab...

International accolade for EIF

3 days ago - 16 September 2020 | Environment

The Environmental Investment Fund of Namibia (EIF) received a certificate of merit for outstanding Sustainable Project Financing at the Karlsruhe Sustainable Finance Awards, recognising its...

Load More