Clever renovations can significantly increase the market value of one's home - and they don't need to break the bank. Rhys Dyer, CEO of ooba, South Africa's leading mortgage originator, says, "There are various means to finance renovations, even if you don't have the available cash resources.
Home loan interest rates - currently at 10.5 percent - are at their lowest level in years. But many consumers don't know how to tap this financial resource and are wasting money using expensive credit facilities.
Many first time homebuyers are missing out on the best bond deals - simply because they don't know of their existence or don't know where to seek advice on home loans. MortgageSA Managing Director Saul Geffen says, "Most first time homeowners are unaware that they can obtain a 108% bond or that getting impartial advice from an originator is absolutely free.
As the value of property increases, more and more people are refinancing to unlock the value in their home but few people realize how it really works, its true cost - or even that the option exists.
MortgageSA, South Africa's leading mortgage originator placing one in five mortgages, said that the possibility of a fixed mortgage system, currently being discussed by the Reserve Bank, could be a double-edged sword for consumers.
With stock markets in seesaw mode, the stability of property as an investment asset class has once again come to the fore. "House prices are expected to increase by 12% this year and while this may not be as high as in recent years, it still represents a good return" says Saul Geffen, Chief Executive of leading mortgage originator, MortgageSA.
As interest rates rise, homeowners have an even bigger incentive to invest in their bonds, as they will be saving even more interest while benefiting from the secondary advantage of a shorter term of repayment.
In the property game there are two ideal scenarios. The first is a serious seller who is happy to price their property competitively. The second, a serious buyer with a clear idea of what they want. In these scenarios the chances of matching buyer and seller is strong.
Young investment savvy South Africans should look at the property market as a first step towards building an investment portfolio, and a key step towards personal and financial independence. Property sales continue to rise and first time home-buyers, many of whom are aged between 22 and 32 years, have driven a sizable chunk of this growth says Bradd Bendall, Head of Sales at ooba.
By extending a bond repayment period to 30 years, home buyers will end up coughing up huge extra amounts of interest over the term of the bond - making property purchase much more costly than the standard 20 year period.
Before deciding to dispose a property, sellers should take Capital Gains Tax (CGT) into account, as this is one of the most important stages to consider before putting a property up for sale.
Since their advent in 1999, bond originators have made a business out of taking the hassle out of securing home finance by helping homebuyers navigate the lending laws, doing the application paperwork and securing the lowest bond interest rate - all at no charge.