11 December 2024
The end of the year brings sunny days, festive cheer, and – if you’re lucky – a year-end bonus! While the temptation to splurge on a getaway or the latest tech might be strong, savvy homeowners know this financial windfall can pave the way for long-term gains. Here’s how to turn your bonus into a smart investment in your home and your future:
Add value through home improvements
A little sprucing up can do wonders for your home’s resale value, but not all upgrades are created equal.
“The key is to focus on upgrades that align with the needs and expectations of buyers in your area and offer practical lifestyle benefits,” says David Jacobs, Regional Sales Manager for the Rawson Property Group. “It’s also important to avoid overcapitalising. You don’t want to spend more than you’ll recoup when it’s time to sell.”
So, which upgrades should you prioritise?
Here are three that tick all the right boxes:
1. A fresh coat of paint
“There’s nothing like a well-done paint job to give your home a fresh, modern feel,” says Jacobs. Neutral colours are a safe bet, appealing to the widest range of future buyers. Plus, this low-cost improvement can dramatically enhance your home’s first impression, adding an easy wow factor for any visitors you may have in the new year.
2. Kitchen and bathroom touch-ups
These spaces are often dealmakers – or breakers – for buyers. If selling is on your radar, Jacobs recommends cost-effective updates like replacing old fixtures, adding stylish lighting, or updating cabinet hardware.
“It’s amazing what a few thoughtful touches can do to modernise a space without the expense of a full renovation,” he says. Of course, if you’re planning on staying put, using your year-end bonus on a more extensive renovation can be a great way to spoil yourself now and boost your home’s resale value later.
3. Security upgrades
In South Africa, home security isn’t just desirable – it’s essential. Adding features like CCTV cameras, automated gates, or electric fencing can improve safety and boost your property’s marketability.
“Strategic security upgrades show buyers that a home is well-maintained and move-in ready,” says Jacobs. “Just keep it subtle – nobody wants to live in a home that looks and feels like a prison.”
Pay down your bond for long-term savings
If home improvements aren’t on your immediate to-do list, your bond offers another golden opportunity to make your bonus work for you. “Putting even a portion of your bonus into your
bond reduces your debt, shortens your repayment period, and saves you thousands in interest,” says Leonard Kondowe, National Manager at Rawson Finance.
For instance, an extra R5000 once-off lump sum on a R1million bond at 11.25% interest could shave up to 4 months off a 20-year repayment term and save over R41,000 in interest! (Exact savings will vary depending on your specific loan terms.)
“It’s one of the easiest ways to accelerate your financial freedom,” says Kondowe. “Plus, if you have an access bond, that money remains available in case of emergencies, giving you greater financial flexibility as well.”
That said, Kondowe stresses that short-term debt like credit cards or personal loans should always be your first priority.
“These debts carry the highest interest rates, so paying them off quickly saves you the most money in the long run,” he says. “Once they’re cleared, you can shift your focus to your bond.”
Find a healthy balance 
While investing your bonus wisely is important, the festive season is also about balance. “It’s okay to treat yourself a little,” says Kondowe. “As long as you’re being smart with most of your money, setting something aside to enjoy the season is perfectly fine. You’ve earned it!”
The gift that keeps on giving
Your year-end bonus is more than just an excuse for a short-term treat – it’s an opportunity to build a stronger financial future. From refreshing your home with a new coat of paint to updating your kitchen or making extra bond repayments, thoughtful choices now can pay dividends in the years to come. “The festive season is a time for fun and for joy,” says Jacobs, “but it’s also a great time to think ahead. A little planning today can lead to significant and lasting benefits.”
So go ahead – give yourself the ultimate gift this year: a brighter, more secure financial future. Your home (and your wallet) will thank you!
