Jumping into the market to find property in Hazyview may seem like a better idea at the start of 2019, and although there are many positive aspects on the horizon, some caution is still needed to make sure you stay ahead of the tough economic times.
The Private Property website offers regular updates on all matters relating to the property market, with excellent advice from industry experts. One of the matters touched on recently was the decision by the Reserve Bank Monetary Policy Committee to keep the repo rate on hold. That means that consumers won’t see the repo rate moved from 6.75%, and the prime lending rate will remain at 10.25%.
Experts were backing the decision too, but warned consumers that it was not time to sit back and pretend to enjoy the good times. Instead, budgets need to remain tight and planning for the future could be essential. They recommend taking 0.25% of your home loan instalment each month and dropping it into savings. This would ease the stress if the rate is eventually changed later this year.
Alternatively, you could direct those funds straight into your home loan, which would allow you to save in the long-run. To give more clarity on this option, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, talks about paying extra into a home loan worth R1.5m and the effect it would have.
“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.”
