Taking the decision to buy property is a huge step, it is also not a step that all citizens qualify for.
While most homeowners who bought their homes through the bank would have paid for them in cash if they could, that is a privilege afforded only by a few citizens in Mzansi. The rest of us continue to pay our home loans monthly looking forward to the last repayment which happens two decades later.
While paying for a house for 20 years might sound like a long period, there are ways to repay it quicker than the prescribed time, saving you thousands of high interest fees.
Every little extra helps – Experts in the property industry always advise to add a little more to the bond repayments as that makes a huge difference later. An amount as little as R50 added every month will significantly increase your bond interest when this is done continuously adds property experts at REMAX.
Making an example on bond of R900 000 at 9.25% interest, Mike van Alphen, National Manager for Rawson Finance shares.
“Your minimum monthly repayments over 20 years would be R8 242.80. If you bump that up to R8 500, just R257.20 extra every month, you cut more than a year and a half off of your loan term, and save R103 348.80 in interest, shares property hub Property24.
If it is possible to change your spending habits or cut down on some of them do so, experts advise. Other things that you might want to reduce in order to save more money are dining out, entertainment subscriptions, bad shopping habits, adds the above-mentioned hub.
Also see: Seaside living demands drive Western, Eastern Cape house price growth
