Monday, 30 April 2007

The Adventures of Rick and Jimbo (Chapter 5)

The Adventures of Rick & Jimbo………………..

Hi Jimbo, How’s things coming on with the building of your house on Raptors View Wildlife Estate?

Cool Rick, the plans have been approved and the builders have already started digging the foundations, check out the photo...

Bet you and the family can't wait to eventually move in to your own home, when will it be ready?

Well Rick, they estimate by the end of October this year.

Great, just in time to invite Brad & Angela around for a while.

Hey Rick, I’m only building a 3 Bedroom house……………..

Compliments of Jordan Properties
Click here for Chapter 1, Chapter 2, Chapter 3 and Chapter 4 of Rick and Jimbo's adventures!


Before any interest rate hikes etc..the're bound to happen somewhere, SAVE with your bond.

Did you KNOW??????
A R 500,000.00 bond at -1% costs you R 5332.15 per month
BUT if you add an additional R 100.00 per month to your payment - Check this out!!!

R 258.76 per month on interest


R 62,103.39 over 20 years......THINK about it

Also you will have access to the extra funds
Be in a position to get a better rate from your branch.

Thats where you win!!!!

Check out pay off your home loan earlier

Tuesday, 24 April 2007

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increase in value in 5-7 years. For more information and bookings please visit "Wizard Home Loans and Purple Cow Properties"

Sunday 06.05.07 Presentations at 3pm and 6pm
Monday 07.05.07 Presentations at 3pm and 7pm
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Thursday 10.05.07 Presentations at 3pm and 7pm
Houghton Golf Club, 2nd Avenue, Lower Houghton, 2041, Johannesburg

Sunday, 22 April 2007


Howdy Folks... Hope you've all had a great weekend. Apologies for the mess on this blog at the moment. It's a Sunday night I've decided to get clever and stuffed a couple of things up on the layout.

Will be changing a couple of things as well, to be honest after BLOGGING the entire weekend again I've realised that the look and feel SUX!


Friday, 20 April 2007

Sanlam Home Loans!

Sanlam Home Loans
Not sure if anyone's seen that advert on T.V.;


*terms and conditions apply*

Just a note on this. This may be of some use to mortgage originators as well. The rate that Sanlam bank offer above is solely based on your property price and loan amount of your property that you are purchasing.

In other words, your bond must be over R2,000,000.00 and not more than 30% of your income must be used to repay the loan back on a monthly basis. The KEY factor to getting a rate concession (interest rate) of up to -2.45% is the loan to value. The bigger your deposit the better your rate concession.

If you're buying a place for lets say, R350,000.00 don't even bother asking for a rate of -2.45% not even if you have 16 properties in your name and have been a client with the bank for 50 years. You may get below prime but nothing close to -2.45%.

Sanlam will only be able to negotiate the rate in line with the value of the property and based on your monthly income.

Amazing Skyskraper - Bahrain

I know this has nothing to do with South African property but it's an amazing building. A family member of mine has just come back from Bahrain and she sent me these photo's... I bet all you bond originators out there would love to be doing the bonds for this little bugger ;-)...

Monday, 16 April 2007

SA Homeloans - Who, Why, What?

Well, my whole idea when starting this BLOG was to write about the different homeloan companies, banks and property agencies. Talk about those who are bullshitting, those who are cheating people out of money but at the same time giving those credit when credit was due. SA Homeloans, you're going to be the first of the home loan companies. The reason I've chosen you is:

1. You're always in the public eye
2. You're one of the few "controversial" companies in South Africa
3. There's loads of questions and queries I have...

I hope that someone at SA Home Loans reads this and helps shed some light on questions that not only I have but that many people have asked me to post up on this BLOG this evening. As a matter of fact, they're all sitting here behind me ;-)

Dial Direct Insurance - Click Here

SA Homeloans JIBAR rate

SA Homeloans have a great reputation for having some of the lowest interest rates out
there... That's a given and it's a known fact amongst mortgage originators. What most people don't know is how they can offer such low rates.

SA Homeloans differ from your normal mortgage origination companies. Instead of relying on the interest rates that the bank offer most originators, SA Homeloans's funding comes from something called the JIBAR rate. The JIBAR rate is the 3 month interbank agreed rate. This is the average interest rate at which banks buy and sell money. The average is calculated by SAFEX on the securities exchange as the average rate quoted by the various major banks in South Africa. This rate normally sits at around 9.1%. What this means, is that SA Homeloans are able to buy money at a rate of 9.1% thereby allowing them to offer people loans and mortgages at rates allot lower than those of the banks. In actual fact they should (and I stand to be corrected) be able to offer rates at 2% lower than the banks can offer you.

SA Homeloans - FACTS!

1. They only offer home loans. They do not offer further loans or further advances on your additional home loan.
2. Loan amount (Loan To Value Ratio) may not exceed 95% of your property value.
3. They have loyalty incentives where they offer you a 0.6% drop in your bond after being with them for 2 years (Kind of shows you how much money they're making)
4. They offer a 50% discount on legal fees


Well firstly because Homeloans SA rely on something called the JIBAR rate, they are at the hands of the securities exchange. This rate changes every 3 months. So let's say for the first 3 months you're offered a rate of 10% (not fixed). 3 months later they purchase more money but the JIBAR rate has jumped up by 0.3%. Automatically and you won't even know this until you get you bond statements, you're monthly repayments jump up by 0.3%. For those people, who are a but short of cash, and probably thought this sounded like a brilliant idea and an awesome rate, if you're living on the edge every month and you can barely make you're bond repayments, 0.3% increase in your repayments for the next 3 months WILL HURT YOU! Should this rate go up again in 3 months time, you're looking at a 0.6% increase. It's their way of making money and it's something that they don't explain to clients when they sign up... It's basically the "read between the lines" portion of their TV Ads. Don't get me wrong, things swing both ways, but this will catch you at some point or another...


This ladies an gentleman is the biggest NO NO in the history of mortage origination. By offering people the option of only paying the interest portion of your bond, they are automatically putting you into more debt. IF you EVER have any extra money at the end of the month, the bond is the account you want to put that money into... They even give you an example; According to SA Homeloans on a R500 000 bond at an interest rate of 10% your monthly repayments will increase by R360 every month. This is ontop of your monthly repayments that you owe. Work that out over 20 years. Plus, just imagine the JIBAR rate increases by 0.6% over the next year, that's going to hurt you...

Don't get me wrong people, this company is great and they do offer awesome rates. They also have a winning formula which is what makes them one of the most successful mortgage origination companies in South Africa, but I believe people need to weigh up their options and just be careful before falling for the "WE CAN GIVE YOU 2.5% BELOW PRIME GUARANTEED".

Related SA Homeloans Interest Only Articles:

Interest only pitfalls

Load of Love

More SA Home Loans news:


Private Property

Thursday, 12 April 2007

Decorex - Improve your lifestyle!

I know this is a property BLOG but, i thought it would be nice to throw in a little light hearted article on the biggest decorative show South Africa has to offer... After all, it's kinda property related if you think about it!

Anyways, I'm a little late with this article as Decorex Durban has already passed (For those of you who were lucky enough to go, share your comments with us please!). However, Decorex Cape Town starts on the 26th April 2007 and Decorex Johannesburg starts on the 8th August 2007 (Yeah we're always last dammit).

So if you're keen on the latest and greatest decorative fashion styles for your new loft apartment, or you just love shows, go on down to Decorex, it's going to be huge!

South African Interest Rates! Hike or Not...

Well.. I'm glad to say that I don't have to bitch and moan in this post :)

I had an entire article thought out in my head waiting for that little speech on the interest rake hike. Trust me, if that interest rate changed again for the umpteenth time in the last 12 months I was ready to grind every living politician and credit bureau in this country. I'm also sure those of you with home loans sitting over R2 Million had their speed dials ready to contact their banks or bond originators ;-), while others, yes you Cape Tonians, were not too perturbed.

I'm very pleased to say though that good old Mr Tito Mboweni (South Africa's governor of the reserve bank), has decided that our interest rate will remain unchanged. According to news reports earlier in the week, most South African reporters seemed extremely sceptical and rightly so about whether or not interest rates would rise, but it seems we're OK for now.

We may be looking at another hike in the not too distant future though. For more information check out Moneyweb's reports on "South African Interest Rates remain unchanged"

Monday, 9 April 2007

Nedbank Home Loans - First Time Buyer

As a first time buyer of a property you qualify (provided you meet certain criteria) for something that's called a first time buyers loan. I'm kind of hoping that posting this sort of information online is not going to get me into crap as I'm not sure Nedbank give this out as public knowledge but I think it's essential knowledge so I couldn't give a crap.

Now Nedbank have something called the "ALPHA BOND". It's basically what we know as a first time loan and here are the requirements that Nedbank have specified in order for an individual to qualify:

1. Min R100 000 loan. There is a maximum limit of R2 000 000.
2. Trusts, CC's and companies can receive up to a 108% loan. The 8% portion covers your registration costs etc...
3. You must have had stable employment for a minimum of 2 years
4. You must have a clear credit record. No bad debt
5. You must be a South African citizen
6. Single or joint income per month must be a minimum of R5000
7. Commission earners require 12 months with the same employee and 6 months commission statements
8. You can get either a variable rate or 1, 2 and 5 year fixed rate contracts

Hope this helps a little. Stay tuned for this weeks Buy-2-Let and Building Loan reviews from Nedbank Home Loans...

WizardMan Out!

Friday, 6 April 2007

Nedbank Home Loans!

This is the first of my new TIP and TRICKS guide to people looking for a home loan. I'm going to split them up into 4 sections: ABSA, Nedbank, FNB and Standard Bank. Believe it these people are as complicated as you think they are so I'm going to try and makes things a little more simple for us!

Today we'll start with Nedbank. Allot of people get confused with regards to bonuses, car allowances and extras and whether or not this gets added to your home loan application as additional income... Well here's some Nedbank Home Loan advice.

With regards to annual/monthly bonuses. If a bonus is paid to you monthly, it may be included as income(You will however need to provide 6 months worth of salary slips). If it's paid to you once a year as a 13th cheque, it may not be added as monthly income. If it's a performance bonus, 50% will be seen as income.

If you have a car allowance the full amount is to be added to the income when applying for your loan.

If you earn on a commission basis, the average amount is to be worked out and 50% of that will be added as income.

If you have a entertainment allowance and it's a permanent benefit, the full amount may be added to your income.

If you work overtime, the average amount is to be worked out and 50% will be added to your income.

Should you have a rental income, i.e. you're earning money from a place that you're renting out, 40% of the rental value is added as income. This needs to be proven with a copy of the lease agreement.

Tuesday, 3 April 2007

The Adventures of Rick and Jimbo (Chapter 4)

So Jimbo, now that you have purchased your Stand on Raptors View Wildlife Estate, when are you planning to build your house?

Well Rick, my Architect Robin, from Intersect Architects(+27 82 804 9787), has come up with quite an amazing layout for our house, we’re just finalizing the finer details now.

Great, but stuck out in the middle of nowhere, who the heck are you going to get to build it for you?

As I mentioned before Rick, we’re not in the middle of nowhere, and anyway, there’s this guy by the name of Peter from Houze-It Construction(+27 83 276 3199), who builds amazing homes at affordable prices, he is providing me with a quote for the house next week.

Cool Jimbo, but is there anyone who controls the quality and building standards of the houses that are built on Raptors View?

Absolutely Rick, there is this guy who actually used to be a Constable and is extremely able at carrying out this task...

Oh okay, what’s his name Jimbo?

Do the math Rick, do the math...

Compliments of Jordan Properties
Click here for Chapter 1, Chapter 2 and Chapter 3 of Rick and Jimbo's adventures!