Posted by Oluwaseyi Temitope John on Sunday, April 6, 2014 Under: Feature Articles
As a South African Citizen, there are lot benefits and advantages you have access to which citizens of other countries in the world cannot get.
Do you prefer to own your property or a car? How long have you been renting? Do you know how much your current landlord bought the property you are living in? Have you checked with your bank if you qualify to buy a property? How often do you check your credit records?
Let me start from the first one. Buying a car is not bad but personally, I believe having your own property should come first, I know few will not agree with me on this.
Long term asset is different from short term asset and we all know which asset both stands for. If you buy a car today, say 2012 Model, the price will NEVER be the same in 2014. But when you buy a property today for R500, 000 you can sell it next year for more. I guess you agree with me on that. With a minimum income of R10, 000 you are qualified to buy a property worth R333, 000 and pay R3, 000 monthly to the bank for 20years. (9% interest rate).
In Durban, I am sure you can still find a flat for that price or less, not too sure about other provinces. You can even consider the township which will be cheaper. That means if you are paying R3, 000 rent you can also buy a property, but remember, there is a levy and rate payable monthly. Levy is to the Body Corporate and rate to your local municipality; prices vary depending on the size of the property.
If you can afford to pay double monthly it automatically reduces your repayment term to 10 years and whenever you get bonuses from work, you can put it into your bond to pay off quickly.
According to study, the average term a property is used is 5 years; most of the people decide to sell after 5 years, either upgrading to a bigger place. This implies that you can sell the property and pay to the bank what you owe and move on. You might also get profits to add to the new property you will be buying. Its free to walk into your bank for pre-approval. They will request for your pay slip and ID copy and tell you how much you are qualified for. Why not take that step and walk into your bank for a pre-approval and you can decided from there.
If you have been renting for up to 5years, I believe it’s time to consider buying. If you cannot afford it, speak to a friend or family and have a joint bond, as most people share flat, you can also share a bond. Best thing is sister or brother; you can put both incomes together to qualify to buy. You can buy with your parents, even if they are not staying but for you to qualify for a better bond and get a tenant to share which will be used to pay back the bond .
Some people say, Hawu, they bought this property 10 years ago at a cheaper price now selling at high prices. The fact is they took a decision to buy at that time and it is now gold. You also need to buy now, so that you too can sell at a good price in the future.
In : Feature Articles
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