Here are some quirky and clever ideas to pay off that loan sooner rather than later...
This innovative website and App allows you to offer short or long-term rentals of a sleeper couch, extra bedroom, granny flat, entire home, flat, teepee or igloo. Seriously. Customers rate your establishment and in turn, you rate the customers. The better your rating, the more customers you are sure to attract. Why not make your home a destination and earn some $$$ to pay off your mortgage? Especially if you plan on vacationing away from your home anyway.
This one is for the brave. Air PnP gives access to restrooms wherever they are needed on the planet. Perhaps you have a guest loo or bathroom that you are happy to temporarily loan to desperate folk who find themselves in your neighbourhood? Well, you set your price, the folks pay AirPnP, and Air PnP pays you. Like the Air BnB system, both the restroom and customer are rated to help prevent any future unhappiness.
3. Change the numbers
Why not shorten the length of your home loan from 30 years to 20 years? And save hundreds of thousands of rands! A R1 million house bought at 9.5% and paid off over a 30 year loan period, will have a bond repayment of R8409 per month and cost the owners a total price of R3 million. The same home bought at 9.5% and paid off over a 20 year loan period, will have a bond repayment of R9321 per month and cost the owners a total price of R2,2 million. You would save R800 000 by using this method. Use this bond calculator from Property24 to work out your savings.
4. Twice as nice
Ask your bank about paying your home loan in bi-weekly rather than monthly installments. As there are 52 weeks in a year, you will end up making 26 payments which is the equivalent of 13 'monthly' payments per year, instead of the usual 12. It's a small change but can save you huge amounts of money without you really feeling it.
Do any of these ring true for you? Or perhaps you have some even better ways that you can suggest to help get our citizens out of debt?