How to make the best of it

BY BONNY FOURIE bronwyn.fourie@inl.co.za

If you’re stuck where you are for financial reasons, the best advice is to build up equity in your home so you can sell and rebuy

‘IF YOU can’t be with the one you love, love the one you’re with.”

This song lyric comes to mind when referencing romantic relationships, but for homeowners who are unhappy with where they are living – either the area or the actual property – the advice can be just as sound.

After all, selling a home to buy another is not a decision one can take lightly.

There are a number of reasons people may be desperate to leave their home and seek another they feel could better meet their needs, or that they would love more. Some of these troubles began before the pandemic, while others have arisen over the past two years as a result of the lockdowns.

Reasons to leave Citing statistics from the FNB Property Barometer, Gerhard Kotze, managing director of the RealNet estate agency group, says the three top motivations for home sellers at the moment are the desire to downscale due to life stage (23%); to downgrade due to financial pressure (19%); and to upgrade to a bigger home or better area (14%).

“However, there are several other reasons that may cause people to really want to move, including a deteriorating security situation in their suburb; a lack of local shops, schools and other amenities; a location requiring a long commute to work; a change in their family structure, and the desire to live closer to family or friends,” says Kotze.

Yael Geffen, chief executive of Lew Geffen Sotheby’s International Realty, says before the pandemic the main reasons people were unhappy with their homes included the commutes to work or essential amenities were too long, a need for more bedrooms for growing families, or simply wanting to upgrade to a better neighbourhood. However, since the lockdown, two of the main reasons people have cited for moving are financial pressure and a lack of space to accommodate living, working, leisure and, often, extended family.

“Another reason for wanting to move is not only dissatisfaction with their homes but also the area in which it’s situated. For people who have the option, especially those who continue to work remotely, moving to a different area for a better quality of life is an increasingly common reason for wanting to move.”

Nadia Aucamp, broker/ manager of Re/Max All Stars, says the lockdown saw many people converting parts of their homes into office space, and this has now led to searches for new properties with the additional space needed to work from home.

There are also instances where people want to move into smaller properties as their children are grown and have left home.

“Some people may be forced to move due to the changes in their financial situations. And others do not want to renovate the house and would rather sell and buy something that is already renovated.”

Feeling stuck But even though the reasons why many people want to leave their homes may be justified, often they may have little to no choice but to stay and make it work.

“Some homeowners may be in a predicament where they cannot move owing to their financial situation,” Aucamp says. Another reason people may not be able to

move is that they live with extended family, and such a decision would then impact all family members.

Kotze says other reasons why people cannot leave their homes and find something better include needing to:

• Wait until a child finishes a school year or a university course;

• Finish a work contract in a particular location; or

• Build up more equity in the property so that it can be sold at a profit to pay a deposit and/or the costs of buying a new home.

This last point, he says, is often a problem for those who bought their homes with 100% home loans and have lived there for only a couple of years.

“This is because by the time they have paid off the bank and paid the costs of selling and moving, there is unlikely to be much left of their sale proceeds to spend on their next home.”

Finances are usually the reason why people have to stay where they are, Geffen agrees.

“This is because, when you own your home it’s not just a simple matter of giving notice and moving – it takes time to sell a property and there are a number of substantial costs involved to complete the transaction.”

There are also personal reasons why people may not be able to move, such as not wanting to move away from ageing parents or schools in which children are settled.

Overcoming the challenges Financial constraints, however, can be overcome in a number of ways, Geffen says.

“For instance, depending on how much the owners still owe the bank, bridging finance is an option. Or, if waiting a little longer is not a problem, then they could consolidate their debt and put some money aside each month to cover the costs of selling and relocating.

“Those who don’t want to move too far from family can also consider multi-generational living and look for a property with a flatlet or cottage.” While there is not much that can be done about things like work contracts or school terms, Kotze says the best thing that all homeowners can do for themselves is to build up as much equity in their homes as they can, as fast as possible, so that they are financially able to move whenever they may want or need to.

Accepting the situation For those who find themselves having to stay put, Aucamp says her team often advise homeowners on the things they can do to make their house work better for them.

“You could always change the living areas by swapping the dining and sitting rooms, or a bedroom with a study. This will give you a feeling that it is a new space. If you do this and paint the rooms new colours, it can feel like a new house.”

Quoting MK Son, Geffen says: “A house is made of brick and mortar, but a home is made by the people who live there.”

And to this end, loving your home is not so much about what it looks like but rather about learning to appreciate the little things and to focus more on how you feel in it.

IF YOU cannot make a plan to move from the property you live in, there are ways to make your situation less miserable. PICTURE: EDSON DE ASSIS/PEXELS