You can improve your chances of being granted a home loan or vehicle finance as well as the interest rate you are offered, if you have a deposit of 10 to 20%. With interest rates expected to increase over the next two years, banks are going to...
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Starting a property portfolio
“I am 22 years of age and I work as a risk manager earning R18 000 a month. I am moving to Boksburg to be close to work and will be renting, however I see that Cosmopolitan is building affordable houses selling at R320 000. I am thinking about...
What determines your home loan rate?
“I bought a house 15 months ago and I have been paying about R500 extra. As a first-time buyer I received a +0.4 prime rate. Can I get the bank (Absa) to review and reduce my interest rate, if so what do I need to do and what will they be...
Investing in property as a club
Ewald Kellerman, Head of Sales at FNB Home Loans says that investing in property as a club brings with it certain challenges: Change in ownership/members of the rental club may be costly. The bank will hold the members liable for the loan, not the...
Don’t rush into home ownership
Most young people have two main goals when they start working: to buy a car and to buy a home. Both of these are big commitments and if you have not done your homework properly, home ownership in particular could cost you more than you realise....
Investing in residential property: is now the time?
Investing in residential property has fallen out of favour over the last few years. In 2003 around 25% of property purchases were for investment purposes; that figure has fallen to 8%, according to the FNB Property Barometer. These figures are...
How to reduce your mortgage payments
“I would like to buy an R80 000 house and would like to know what my monthly mortgage payment would be,” writes Wilfred. Maya replies: How much you will need to pay each month to cover your mortgage will depend on your initial deposit and interest...
Township house price growth slightly ahead of suburbs
John Loos, property economist at FNB, analyses the trends in house price growth in South Africa, comparing the former "black townships" to those areas formerly known as "white suburbs". The areas formerly classified as "black areas" under...
Listed property’s bumpy road offers investment opportunity
By Ian Anderson, chief investment officer at Grindrod Asset Management South Africa’s listed property sector continued its slide during the week ending 31 May 2013, as the Rand breached R10/US$ and bond yields moved sharply higher. Having declined...
Bankrupted by the body corporate
Sectional title is often the more affordable way to buy a home but it comes with its own challenges and you need to be a proactive resident to ensure your body corporate is run properly. A City Press reader was recently informed by her body...
Previous Articles
REIT legislation uplifts listed property sector
Ian Anderson, chief investment officer at Grindrod Asset Management, reviews the performance of the listed property sector over the past week. South Africa’s listed property sector soared more than 3% last week, as investors poured into sector heavyweights like...
What a first time homeowner needs to know
Buying a home is a financial plan not an emotional impulse. You need to have a strategy in place before taking on the commitment of homeownership Jana and her husband Bertie want to take the big step and buy their first home. This is a serious commitment for any...
Estate agents see weakening in property market
The latest FNB Estate Agent Survey found that after a much improved 2012 compared to 2011, the final quarter of last year showed a weakening in demand for property, possibly as a result of a weakening economy. A survey of estate agents is a good indicator of what is...
No home loans for non-FNB customers
Over the last ten years mortgage originators such as ooba and BetterBond have played a significant role in increasing the competitiveness of home loans. By assisting customers to shop around for the best rates bond originators forced the banks into a price war which...
Five tricks to reduce your home loan
Homeowners can reduce the term of their home loan and the total that they pay in with careful budgeting and clever tricks. A house is usually the biggest asset that you will buy in your lifetime, but it's made affordable by the 20-year term of monthly repayments. Most...
Would you buy a house with your friend or sister?
Higher house prices and stricter lending criteria by the banks have pushed homeownership out of reach of many ordinary South Africans on a single income. But if you really wanted to own a house would you be prepared to share the responsibility with a friend?...
Starting a property portfolio
Isaac shows how with discipline and a goal it is possible to build up a portfolio of properties on a limited salary that will one day pay you an income. It is important however to make sure that you do not over extend yourself and risk losing your entire investment....
Offshore asset allocation
“I want to invest offshore and I'm considering Allan Gray's Orbis Funds. Should I go for full equity, a medium equity or for 0% equity exposure?” writes Vaneshen Maya replies: In terms of offshore, the investment guru’s all believe that equities is the place to be as...
Build up a property portfolio or diversify into other assets?
“My primary residence is fully paid off and I recently purchased a second property which I would like to pay off in the next 5 years. I have an extra R100 000 in a money market account, should I put that into the rental property plus an extra R2000 per month and pay...
Time to fix your mortgage
Six months ago Barclays Wealth predicted that South African interest rates would increase by 200 basis points by the end of 2012. At that time banks were charging around 115 basis points above their existing rate for clients to fix their mortgage for two years. Today...