The last thing on many people’s minds in 2018 was searching for property in Heidelberg due to the tough economic conditions, however, 2019 has brought about some renewed optimism and has those on the fence looking to make a move.
Experts have suggested that buying property now could be the smart move, and after news that the Reserve Bank Monetary Policy Committee had decided not to increase the repo rate was revealed, it makes this a viable option for some.
However, even though experts have backed the decision to keep the repo rate at 6.75%, with the prime lending rate at 10.25%, you should continue to remain cautious on how you handle your payments. In an article on the Private Property website, experts provided some tips on how to best maximise the steady repo rate.
Saving 0.25% of your home loan instalment now could prove useful if the repo rate is adjusted further down the line in 2019. And, if it ends up remaining the same, you will have instant access to some emergency funds if you need them.
If you would prefer, you could look to push the amount straight into your home loan as an added payment, which would go a long way in shortening your repayment terms. Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, discusses just how big an impact this can make, and uses a home loan of R1.5m as an example.
“By putting in just an extra R300 per month towards your bond, the repayment period would be shortened by over a year, saving you R130,000 – enough to buy an entry-level car. Putting in an extra R500 per month would shorten the repayment period by two years and save you around R200,000.”
