Tag: bond repayment

For those who have just won the Lotto – or in a more likely scenario – are exceptionally good at saving - choosing to buy a home in cash can have its advantages. However, this option also means forgoing tax benefits, and tying up a substantial amount of hard cash in a fixed asset for a long period of time.

The journey to joint home ownership can be an exciting one and may improve your chances of being approved for a home loan. However, whether you are financing a home as a couple (married or unmarried), as business partners or even as friends, a home loan is a serious and long-term financial commitment.

Purchasing a home is one of the most significant financial decisions most people make in their lifetime. This requires careful consideration and planning, especially in today's economic climate, where interest rates are skyrocketing, and income is not set in stone.

Property remains one of the best long-term investments and if you can subsidise the cost through a rental income, even better, but when deciding on where to buy your investment property, you will need to consider a number of factors to ensure the best possible returns.

Interest rates have gone up several times in the last few months in South Africa, and it looks like they will keep rising for the foreseeable future. So, this begs the question: what are interest rates, why are they rising, and how do they affect you?

As interest rates continue to rise, it is more important than ever to put down a deposit on your new home to keep your monthly bond repayments down. Inflation in South Africa rose to 5.9% in April 2022 and by the end of May, the Reserve Bank’s Monetary Policy Committee increased the repo rate by 100 base points to 4.75%.

In the wake of the pandemic, many face the reality of their meticulous credit records being negatively affected by the whirlwind of last year’s economic instability. Landlords and tenants alike have been affected due to income loss, leading to missed bond payments, downsizing and, unfortunate, if unavoidable evictions.

Applying for a home loan is the most important step on the home buying journey, but many first-time applicants are in the dark about what the banks – the institutions with the power to approve these home loans are looking for. The process is relatively straightforward, provided you have all your financial affairs in order.

The South African Reserve Bank recently announced that it is holding the repo rate steady - but what does this actually mean for property owners, and why should prospective buyers care if the repo rate falls or increases?

Travel bans, lockdown, working from home and avoiding public spaces have suddenly become the new normal, and you may be feeling unsettled and anxious as the coronavirus crisis wreaks havoc on our everyday activities and routines.