Comments on: There’s an army of Wealth Creators waiting in your Homeloan Barracks http://propertyloans.co.za/263/there%e2%80%99s-an-army-of-wealth-creators-waiting-in-your-homeloan-barracks/ the lowest Home Loan interest rates & best bond deal Tue, 07 Feb 2012 23:52:24 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: yes2property http://propertyloans.co.za/263/there%e2%80%99s-an-army-of-wealth-creators-waiting-in-your-homeloan-barracks/comment-page-1/#comment-116183 yes2property Wed, 07 Jan 2009 06:51:46 +0000 http://www.propertyloans.co.za/263/there%e2%80%99s-an-army-of-wealth-creators-waiting-in-your-homeloan-barracks/#comment-116183 Very good advice, we have been doing it for a while and it really pays off. Very good advice, we have been doing it for a while and it really pays off.

]]> By: Adam Wesson http://propertyloans.co.za/263/there%e2%80%99s-an-army-of-wealth-creators-waiting-in-your-homeloan-barracks/comment-page-1/#comment-54311 Adam Wesson Thu, 22 Nov 2007 09:10:04 +0000 http://www.propertyloans.co.za/263/there%e2%80%99s-an-army-of-wealth-creators-waiting-in-your-homeloan-barracks/#comment-54311 Many people have a bond as well as a savings or notice account. The reality is that it is a waste of time saving while you have debt aka. homeloan. However, there is a smarter way of saving. Instead of paying money into a 32 day notice account and earning a small amount of interest, rather use your bond as your savings account. You ask, "how would paying my house off save me money?" Well, on a notice account you might earn about 6% but on your bond you might be paying 13.5% p/m. For every extra rand you put into your bond, you decrease the capital amount and therefore pay less interest. Your bond term is also typically over 20 years. An example of this is paying an extra 35% into your bond would mean you pay your bond off in half the time (10 years instead of 20). Say your bond is R10000, you now pay in R13500 and pay it off in 10 years. Thats a saving of R10000 x 120 months = R1 200 000 (without any compounding) Not bad for 10 years, much better than that 32 day account. Many people have a bond as well as a savings or notice account. The reality is that it is a waste of time saving while you have debt aka. homeloan.

However, there is a smarter way of saving. Instead of paying money into a 32 day notice account and earning a small amount of interest, rather use your bond as your savings account.

You ask, “how would paying my house off save me money?” Well, on a notice account you might earn about 6% but on your bond you might be paying 13.5% p/m.

For every extra rand you put into your bond, you decrease the capital amount and therefore pay less interest. Your bond term is also typically over 20 years. An example of this is paying an extra 35% into your bond would mean you pay your bond off in half the time (10 years instead of 20). Say your bond is R10000, you now pay in R13500 and pay it off in 10 years.

Thats a saving of R10000 x 120 months = R1 200 000 (without any compounding) Not bad for 10 years, much better than that 32 day account.

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