Fluctuations in property value and interest rates can also affect prospective buyers. With the current increase in interest rates, the cost of financing rises, and demand for credit weakens over time, resulting in lower house prices. As house prices decline, it can be a good time to purchase property, provided you have enough financial leeway to withstand the risk of potential further interest rate hikes.
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The current economic climate in South Africa has many prospective and current homeowners worried about rising interest rates and the cost of living, and applying for a bond may seem like something only a select few can afford to do.
To understand what your home loan repayment is made up of (in terms of principal and interest), you first need to understand compound interest, and how it works in reverse for debt.
Many homeowners don’t understand the difference between a market value and a bank value. This is particularly important when a homeowner wants to refinance a property that was previously unbonded, or paid off.
It can be a shock when the bank valuation comes in below the market value they had already assessed in their head. So, why does this happen? How can two “values” be so different for the same property?
Purchasers buying property for R650,000 and below will potentially qualify for FLISP, a government subsidy for first-time homebuyers. FLISP can be used to cover transfer and bond registration costs, thereby allowing the purchaser to buy a home without upfront savings.
South Africa's interest rate hike has been a topic of much discussion among economists and consumers alike. The recent increase in interest rates by the South African Reserve Bank has sparked a wave of concern and speculation about the impact it will have on the economy and individual households.
Phoenix Bonds is a leading home loan advisory service provider in South Africa, offering expert guidance to clients seeking to finance their dream home.
The South African housing market has seen a period of strong growth over the past two years, with low interest rates and a strong demand for property driving sales and pushing up house prices. However, this boom is beginning to cool off as interest rates rise and the cost of living continues to increase.
Instant loans, also known as payday loans, have become increasingly popular in South Africa as a way for individuals to access cash quickly and easily. However, with the rise of technology and the internet, it has become easier for scammers to target unsuspecting individuals with unsolicited loan offers via SMS.
The Monetary Policy Committee (MPC) meets six times a year to set interest rates and battle inflation. Economists’ projections can be varied, but the result is typically in the middle. A collection of estimates across the industry has allowed the team at Phoenix Bonds to put together an “average” interest rate forecast for 2023.
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