Page 14 - Kyalami_Issue 1_2022

PROPERTY

CLIMATE FOR

PROPERTY PURCHASES

REMAINS POSITIVE

Jawitz Properties takes a look According to ooba’s data, over a 20 year other factors and there are various ways
at the financial implications period, a home loan of R1 000 000 to ensure that you get the best possible
deal. For starters, the larger the deposit
would have cost R7 904 per month at
of the altered lending rates for an interest rate of 7.25%. At 7.5%, the you have saved up, the more the bank will
homeowners, ways to secure the monthly instalment will be around see you as a safe investment. Another
R8 056 per month - an increase of
important step is to use a bond originator
best possible interest rate, and just R152. If you're considering buying when you apply for your home loan, as
reasons why now is a great time property in this price bracket, it’s worth they will approach all the banks on your
behalf to get the best possible deal. The
remembering that all properties under
to invest in property. the R1 000 000 mark are currently better your credit rating, the better the
exempted from transfer duties. home loan interest rate you are likely to
get. You can therefore start preparing
In 2020, South Africans saw a historic If your bond amount is R1 500 000, the for the journey of homeownership years
series of cuts to the repo rate that interest rate increase will see you paying in advance by paying off as much debt
resulted in a prime interest rate of just just over R220 per month more. At an as possible and proving that you are
7% – a rate not seen in years. While the interest rate of 7.25%, you'd have been financially responsible.
repo rate increased to 4% in January paying approximately R11 856 per month,
2022, increasing the prime interest rate while the increase will see your payment OTHER POSITIVE FACTORS
to 7.5%, this is still a rate far lower than adjusted to R12 084. AT PLAY
has been experienced in the last few The COVID-19 pandemic has had
years. As a third example, let’s consider a bond a remarkable impact on consumer
amount of R3 000 000. You will have behaviour and, as banks compete for
ALTERED HOME LOAN been paying approximately R23 711 per their share of the home loan market,
INSTALMENTS month. The interest rate increase to 7.5% they have a healthy appetite for risk. This
The good news is that while there will will see your monthly premium rise to means higher approval rates and lower
be a change to your monthly home R24 168 - a difference of just R457 per interest rates for home loan applicants.
loan instalment, the increase will be month. While the local interest rate has
negligible and becoming a homeowner increased slightly, it is still an ideal time
is still extremely affordable. Home WAYS TO SECURE THE BEST to invest in property. A high percentage of
loan originator, ooba, has crunched the POSSIBLE INTEREST RATE home loans for first-time buyers are being
numbers and reveals that no matter what Despite the fluctuation of the repo rate, accepted, as well as 100% home loan
the value of your bond is, the increase is the interest rate that you are given when applications. In a nutshell, the time to buy
very affordable. you buy a property will also depend on property remains now.

12 Kyalami Estates • CONNECT • Issue 1 • 2022