Ways you can benefit from a steady interest rate
Why you should be jumping at the opportunity to buy property in KwaZulu-Natal, with a steady interest rate there are a few ways that you can benefit. In this article we take a look at some expert advice on how you can save some money in the long run.
With the current state of affairs, you would not be to blame if you were holding back on forking out your hard earned cash. Here we take a look at why you should be jumping to to buy property in KwaZulu-Natal, and how you can benefit in the long run.
Recently the MPC (Monetary Policy Committee) had some positive news to share with South Africans, the decision to keep the prime lending rate at 10.25% and the repo rate at 6.75% was made. And although this may very well be reason enough to celebrate, we chat to experts about why you should be looking to tighten your belt.
By maintaining a lifestyle on a budget right now, you will not only be used to it when the rates do eventually go up but you will also be able to put some money away every month into an interest bearing account. Having some emergency money to fall back on can provide some much needed relief when experiencing financial stress.
Adrian Goslett, Regional Manager and CEO of RE/MAX Southern Africa goes on to say that you should be reinvesting the amount you would have been paying into your home loan if the interest rates had gone up. He goes on further to explain that a property costing R1,500,000.00 at a 10.25% interest rate will cost you R3,500,000.00 over a period of twenty years. Making your monthly installment around R14,700.00, if you add just R300.00 to your payments every month you can shorten your payment period my a year and save R130,000.00, which is enough to buy a new car!
