Proactive budgeting for home maintenance can save you from unexpected repair costs and preserve your property's value. Discover how to effectively plan your maintenance expenses today.
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Owning a home is a rewarding yet challenging investment that demands careful planning and foresight.
South Africa’s residential property sector is expected to come under renewed pressure following the SA Reserve Bank’s decision to raise interest rates by 25 basis points, with property groups warning that higher borrowing costs will squeeze household finances and slow market momentum.
The increase pushed the repo rate to 7% and the prime lending rate to 10.5%, following a rise in inflation, with the Consumer Price Index (CPI) climbing to 4% in April — the highest level recorded since August 2024.
Property industry leaders said the decision will increase monthly bond repayments for homeowners and prospective buyers already battling rising fuel prices and higher living costs.
Stephen Whitcombe, managing director of the FIRZT Property Group, said the increase highlighted the importance of careful financial planning for buyers entering the market.
“For homeowners with a 20-year bond of R1 million, the 0.25% increase translates into an approximate monthly repayment increase of around R165 to R175, while a R2m bond could see repayments rise by roughly R330 to R350 per month,” he said.
REMAX Southern Africa CEO and regional director, Adrian Goslett, said the higher borrowing costs would place additional strain on consumers, but added that the local property market had historically proven resilient during shifting interest rate cycles.
“Higher interest rates will naturally influence buyer affordability and may result in consumers approaching property decisions with even more caution; however, the South African property market remains underpinned by long-term demand as property is viewed as a stable investment,” he said.
While homeowners often focus on bond repayments and municipal bills, an essential component of securing the long-term value of a property lies in budgeting for maintenance costs.
According to Goslett, proactively planning for these expenses can alleviate financial strain when unexpected repairs arise.
As a general guideline, it is advisable to set aside approximately 1% to 3% of your home's value annually for maintenance costs.
For instance, if your property is valued at R2 million, this translates to an annual maintenance budget ranging from R20,000 to R60,000.
However, Goslett emphasised that the ideal amount may vary based on several factors, including the property's age, the quality of its construction, its size, and the environmental conditions to which it has been exposed.
Older homes often require more frequent maintenance due to an ageing infrastructure, while newer or recently renovated properties typically demand less immediate attention.
Yet, it is crucial for homeowners to remain vigilant, as neglecting routine checks can lead to deferred maintenance issues that could escalate in cost and urgency later on.
Regular upkeep activities–including repainting, roof inspections, and the servicing of electrical and plumbing systems–are vital to preventing significant expenses down the line.
Goslett pointed out that a well-maintained property not only retains its value but also attracts potential buyers more readily when it comes time to sell.
A home that has been consistently cared for projects responsible ownership, which can translate to quicker sales and stronger offers.
“Maintenance should be viewed not as an optional expense but as an integral part of the ownership journey,” Goslett said.
By planning ahead and designating the appropriate budget for maintenance costs, homeowners can safeguard their investments and enjoy greater peace of mind.
With Winter already here, many South Africans have braced themselves for the costs that come with the season.
This was according to Tina Manyanya, spokesperson from short-term lender Wonga.
"From maintenance expenses to higher grocery costs, it’s key that households are prepared for a shift, particularly as living costs continue to rise," Manyanya said.
When setting up a monthly budget, it is easy to overlook the things we don’t want to think about, or the things we hope will never happen.
However, Manyanya reminded South Africans that winter can bring a number of unexpected costs, from car repairs and doctors’ visits, to leaks and small household maintenance.
“Setting aside even a small amount for a rainy day can help relieve pressure on your bank account, while also building better good habits for the future. Keep an eye out for cracks or rust on your roof to avoid leaks. Be proactive and clear out gutters and downpipes before heavy winter rains arrive, helping to to protect your home from unwanted water damage and bigger repair costs later,” she said.
In the end, these small yet significant financial commitments can lead to substantial rewards, preserving both the condition and value of one of life’s most important assets.
PERSONAL FINANCE