There are, currently, many positive signs for the future of the property market.
Tony Clark, MD of Rawson Properties, believes that interest rates in South Africa are set to be cut even further.
Clark adds that an interest rate cut of 0.5% will benefit the property market, perhaps far more than most people realise.
Currently, many households have more disposable income now than they have had in years. And buying confidence is starting to return. Added to that is the fact that interest rates are at record lows, and house prices are now more affordable.
The prime interest rate is at 9.0%, and another cut could bring the rate down to 8.5%.
The banks are also granting more 100% home loans, making homeownership much more attainable.
These factors all point to a very positive future for the property market.
My husband and I bought a house in 2017and paid deposit and yet the bank gave us a bond for 30years. We were expecting to get a bond of 20 years hence we paid the deposit in full. Which means now that we will be paying far more back than what we hoped for. Both of us only have 17 years left to work and was hoping to be finish with the bond by our retirement year. Is there a way this can be changed without affecting the installment that we are paying already?
Yes there is a way to lessen the bond term without effecting the current set up. It’s all about paying over and above your minimum monthly installment currently being paid. The key is to pay this additional amount directly into your bond account a day after your bond repayment has been debited. This ensures that the extra monies are allocated directly towards the capital balance of the bond account. The advantage of structuring it this way, is that you have more control over how much extra you wish to pay each month, and you can still have access to the excess amounts you pay in the event of any cash flow emergencies. To find out exactly how much extra to pay for a 17 year term, please email our senior consultant Olen Sterling olen@propertyloans.co.za who will gladly assist.
I am looking for a homeloan please let me know if i can get one my goined amount is 13700 and am working for local goverment and do get a subsidy