The 5 benefits of buying a house early when you're young

Lake Properties

Here are five key benefits of buying a house early in life:

1. Building Equity Early: By purchasing a home early, each mortgage payment gradually increases your equity, which is the portion of the home you truly own. Over time, this can grow into a valuable asset, especially if the property appreciates in value.

2. Long-Term Financial Stability: A fixed-rate mortgage can give you predictable monthly payments, unlike renting, where prices may increase. Owning a home can provide long-term stability and protect against inflation.

3. Wealth Creation and Investment: Real estate is often a good long-term investment. Early homeownership allows you to benefit from property appreciation over a longer period, potentially leading to significant gains if property values rise.

4. Tax Benefits: In many places, homeowners can claim tax deductions on mortgage interest and property taxes, which can lower your tax burden and increase your disposable income.

5. 

 Unlike renting, owning a home gives you the freedom to modify and personalize your living space. Early ownership also allows you to create a stable and customized environment suited to your preferences.

Buying a home early can be a strategic move, setting you up for financial growth, stability, and freedom down the line.

What questions do I ask my Estate agent before selling my house

Lake Properties

When selling your house, it's important to ask your estate agent the right questions to ensure you're making informed decisions. Here are key questions you should ask:

1. How much is my house worth?

Ask for a valuation and the factors influencing the suggested price. It’s good to know if it's based on comparable properties, market trends, or your home's unique features.

2. What are your fees and costs?

Understand the agent’s commission, any upfront fees, marketing expenses, and whether there are any hidden costs.

3. How will you market my property?

Ask about the platforms and strategies they’ll use to market your home (e.g., online listings, social media, brochures, open houses).

4. How long do you expect it will take to sell my house?

Get an estimate based on current market conditions. This will help set expectations on timing.

5. Do you have potential buyers already on your books?

Knowing if the agent has a database of buyers interested in your type of property can give you a head start.

6. What type of sale do you recommend?

Should you sell by auction, private sale, or set a fixed price? The agent can explain the pros and cons of each method for your situation.

7. Can you provide references from previous clients?

This helps gauge their reputation and success rate from those who’ve worked with them before.

8. What happens if my house doesn't sell within a certain timeframe?

Find out if the agent has a plan B, such as adjusting the asking price or altering the marketing strategy.

9. How often will I receive updates and feedback from potential buyers?

Regular communication is important, so clarify how often they’ll provide feedback after viewings or marketing efforts.

10. What is the length of the contract, and are there any tie-in periods?

Understand how long you’re committed to the agent, and if there are penalties for switching agents before the end of the contract.

11. How will you vet potential buyers?

Ask how they ensure that buyers are serious and financially able to proceed with a purchase.

12. Will you handle the viewings?

Clarify whether the agent will personally conduct viewings or if this is your responsibility.

13. What do I need to do to prepare my house for sale?

Ask for recommendations on how to stage your home, any necessary repairs, or impr What should I disclose to buyersovements that can boost the sale price.

Ensure you're aware of any legal obligations in disclosing certain aspects of your property, like structural issues or repairs.

15. How do you negotiate offers?

It's important to know their negotiation strategy and how they plan to secure the best price for your home.

These questions will help you choose the right estate agent and manage the selling process smoothly.

Saving on bond payments

Lake Properties

Saving on bond payments, or mortgage payments, is a financial goal that can provide significant long-term benefits. Whether you're a new homeowner or have been paying off your bond for years, there are several strategies you can implement to reduce your monthly payments and ultimately pay off your bond more quickly. Here’s a guide on how to save on your bond payments:

### 1. **Refinance Your Bond**

   Refinancing your bond involves taking out a new loan to pay off your existing mortgage. If interest rates have dropped since you first took out your bond, refinancing at a lower rate can significantly reduce your monthly payments. Be sure to consider the costs of refinancing, such as attorney fees and new bond registration fees, and weigh them against the potential savings.

### 2. **Make Extra Payments**

   Paying a little extra on your bond each month can help you save on interest and reduce the term of your loan. Even a small additional payment can make a big difference over time. For instance, if you pay an extra 10% each month, you can shave years off your bond and save thousands in interest. Ensure your lender allows extra payments without penalties.

### 3. **Choose a Bi-Weekly Payment Plan**

   Instead of making monthly payments, consider paying half your bond amount every two weeks. This results in 26 half-payments per year, which equals 13 full payments, rather than 12. This method allows you to make an extra payment each year without much effort, reducing the principal faster and saving on interest.

### 4. **Negotiate a Lower Interest Rate**

   If you have a good credit score and a stable financial history, you might be able to negotiate a lower interest rate with your lender. Approach your bank and ask if they can offer you a reduced rate, especially if market rates have decreased since you took out your bond. A small reduction in your interest rate can lead to substantial savings over the life of your bond.

### 5. ****

   While a 20 or 30-year bond offers lower monthly payments, opting for a shorter loan term, such as 10 or 15 years, can save you money on interest in the long run. Although your monthly payments will be higher, you’ll pay off your bond faster and pay less in interest overall.

### 6. **Review Your Bond Insurance**

   Many lenders require you to take out bond insurance, which protects them if you default on your payments. However, the cost of this insurance can vary significantly. Shop around for better rates or consider switching providers if you find a more affordable option. Ensure you are not over-insured, as this could unnecessarily increase your costs.

### 7. **Make Lump-Sum Payments**

   If you receive a bonus, inheritance, or any other windfall, consider making a lump-sum payment on your bond. Many bonds allow for lump-sum payments without penalties. This can drastically reduce your principal, leading to lower interest payments and shortening the loan term.

### 8. **Avoid Bond Payment Holidays**

   Some lenders offer bond payment holidays, allowing you to skip payments for a few months. While this may seem attractive, it usually leads to increased interest costs, as the unpaid interest is added to your principal. It’s best to avoid these holidays unless absolutely necessary.

### 9. **Maintain a Good Credit Score**

   A good credit score can give you access to better interest rates and loan terms. Pay your bills on time, avoid taking on unnecessary debt, and regularly check your credit report to ensure accuracy. A strong credit profile can lead to lower bond costs, especially if you choose to refinance or negotiate with your lender.

### 10. **Downsize Your Property**

   If you find g your bond payments are becoming too much to handle, consider selling your property and buying a smaller, more affordable one. Downsizing can reduce your bond size, resulting in lower monthly payments and less financial stress.

By implementing one or more of these strategies, you can reduce your bond payments and save money over the life of your loan. The key is to stay informed, regularly review your bond terms, and make adjustments as necessary to ensure you’re paying the least amount possible.