Wednesday, 28 February 2007

Its 28th Feb - Start Hiding your Money

Its the end of the financial year and everyone seems to be transferring money and paying off accounts!!!! Whats going on?????

Thursday, 22 February 2007

TREVOR You Beauty You

Trevor Manuals tax deal for individuals is fantastic.

Take this opportunity to put the tax you save into your home loan account You will be shocked what you save. If you send me your current bond amount, rate and tell me how much extra you can put in (From your tax savings) Ill show you what the impact is. Its quite frightening

Example You have a R 450,000.00 home loan over 20years at 12% = R 4954.89 per month

So if you now save R 200.00 per month on tax and add that to your monthly payment (Savings)

Your bond term will reduce from 20 years to 17,3 years
Your monthly payments increase to R 5154.89 per month
You save interest of R 501.20 per month
Best of all you save R 120,288.50 over the period of your bond.
You can save email me and I'll show you how much you will save

South African budget 2007/2008 - Trevor Manuel


For those of you interested I managed to get hold of a "SUMMARY" of yesterday's South African budget speech for 2007 and 2008. Take a look:

South African Budget Review - Trevor Manuel – 21 February 2007

The Minister of Finance, Mr Trevor Manuel, delivered his budget speech for the 2008 tax year at 2pm today. The following is a summary of the more pertinent points:-


Trevor stated that Companies Tax remains at 29%, however Secondary Tax on Companies is to be replaced by a Dividend Tax on Shareholders in two phases. Phase 1, commencing 1 October 2007, will consist of reducing the current STC rate from 12.5% to 10%. Phase 2, which will commence in 2008, will consist of a complete move to a Dividend Tax on Shareholders, although its administrative enforcement will still be by way of a withholding tax at company level.

Whilst the Income Tax Act allows for depreciation of buildings used in manufacturing, there are currently no benefits for commercial buildings. A wear and tear allowance of 5% pa on new buildings and upgrades is proposed.


The tax rates applicable to small business corporations are as follows:-

2008 tax year
R0 – R43 000 nil
R43 001 – R300 000 10% of the amount over R43 000
R300 001 and over R25700 + 29% of the amount over R300 000

2007 tax year

R0 – R40 000 nil
R40 001 – R300 000 10% of the amount over R40 000
R300 001 and over R26000 + 29% of the amount over R300 000


The tax tables applicable to individuals have been revised (see below), however the maximum tax rate remains unchanged at 40%.

The primary tax rebate has been increased to R7 740 (2007 : R7 200), while the additional rebate applicable to persons over 65 has increased to R4 680.

These changes have resulted in the annual threshold below which no tax is payable, being increased to R43 000 (2007 : R40 000) for persons under 65 and R69 000 (2007 : R65 000) for persons over 65.

The monetary caps for tax-free medical scheme contributions has been increased from R500 to R530 for each of the first two beneficiaries and from R300 to R320 for each additional beneficiary.

Retirement Fund Tax will be abolished from 1 March 2007.

The interest exemption has been increased to R18 000 (2007 : R16 500) for persons under 65 and R26 000 (2007 : R24 500) for persons over 65. The foreign interest and dividends threshold has increased from R2500 to R3000pa.

The private/business split with regard to travel allowances has remained unchanged, with the first 18000km still being classified as private in the absence of a logbook.



With effect from 1 October 2007, the gains on the sale of any equities which were held for longer than 3 years will be classified as capital gains.

The annual capital gains exclusion for individuals has increased to R15 000 (previously R12 500)

The primary residence exclusion for individuals has remained unchanged at R1 500 000.

The capital gain exclusion on death has increased to R120 000 (previously R60 000)


Donations up to R100 000 per annum are free of donations tax (previously R50 000). Donations tax will be levied at 20% thereafter.


Trevor Manuel proposed that the first R3 500 000 (previously R2 500 000) of a persons estate is free of estate duty. Estate duty will be levied at 20% thereafter.



0 – 112 500 18% of each R1
112 501 – 180 000 R20 250 + 25% of the amount over R112 500
180 001 – 250 000 R37 125 + 30% of the amount over R180 000
250 001 – 350 000 R58 125 + 35% of the amount over R250 000
350 001 – 450 000 R93 125 + 38% of the amount over R350 000
450 001 and above R131 125 + 40% of the amount over R450 000


0 – 100 000 18% of each R1
100 001 – 160 000 R18 000 + 25% of the amount over R100 000
160 001 – 220 000 R33 000 + 30% of the amount over R160 000
220 001 – 300 000 R51 000 + 35% of the amount over R220 000
300 001 – 400 000 R79 000 + 38% of the amount over R300 000
400 001 and above R117 000 + 40% of the amount over R400 000

Born in Kensington, Cape Town on the 31st January 1956, Trevor Andrew Manuel is currently South Africa's Minister of Finance. Currently running in his 11th year as Minister, he is one of South Africa's most well respected polititians.

Tuesday, 20 February 2007 - Commercial Properties

I came across a website today called Eprop. They are specialists in online commercial property in South Africa dealing with Office, Retail and Industrial property sectors.

I'd heard of them before but never realised they were so big...
They apparently have more than 15 000 visitors to this site on a constant basis and are the biggest commercial property marketplace in South Africa.

If anybody has more information regarding this company, possibly who they're owned by and how long they've been going for let me know.

Old Mutual Bank, Standard Bank, ABSA, Nedbank, First National Bank

What does everybody think about the home loans services from the banks?
2. SO SO

Gives us your experiences that you've had with home loans and homeloan applications.
Which banks have you dealt with? Old Mutual Bank? Nedbank?

Who gets your vote??

Standard Bank
First National Bank
Old Mutual Bank

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ABSA Home Loans - Flexi bond

absa flexi bond
Its interesting that ABSA home loans has gone through a very exciting change over the past period of time. Quick turn around, great interest rates and superb bank products.

We have always been staunch "Other" bank clients but have recently done a family based deal with eight applicants and a huge bond. Not only did we get 20 year loan on vacant land, but the interest rate was great as well.

Please share your ABSA bank experiences with me.

ABSA you guys rock!!!!!!!

Monday, 19 February 2007

Interest Rates - Up or Down?

According to some sources this week, Tito Mboweni (South Afica's governor of the Reserve Bank) has decided to hold back on interest rates. The Sunday Times newspaper yesterday said that even though the inflation rate targets have been met there is no indication of an interest rate cut anytime soon. There was some speculation of an interest rate hike but according to economists the outlook looks very positive.

Looks like people have also stopped buying so many "non critical" things on their credit cards, our credit growth seems to have eased out a little. This is a positive aspect for interets rate cuts as well.

Nice to See. Well done S.A.

Magical Blogger...

Well, it's been almost a full week now and I'm loving this BLOGGING. As you may have seen Chris "The Mage" has done his introdution letter. Rosetta "The Mystic", Storm "The Pixie" and Patsy "The Sorceress" will all be posting pretty soon. Please give them sometime, they're still a little "Blog Shy" ;-).

As you can see we've decided to go with the Wizard/Magical feel to our BLOG as we believe that mortgage is MAGIC! It's an aspect of everyone's lives and if done properly and good advice has been given, it can be a better investment than any you'll find.

It's LOW risk, with great returns. Trust me, if you're scared of homeloans and the word "bond" makes you quiver, let us know we'll put your mind at ease. Come people lets POST I need some hits :)

WizardMan Out!

Thursday, 15 February 2007

Real Rights, Is it for you?

Real rights means the right to build in a Sectional Title according to the rules of the Home Owner's Association within the period indicated by the date of registration of the certificate of Real Right in your name.

Standard Bank is the only Bank at the moment that does offer Real Rights.

It works as a building loan with draw downs as the work progresses with the land portion paid upfront to the Developers.

The intregity of the Developer is very inportant as he will guide you through the process from beginning to end.

Standard Bank will only cover 50% of the whole Complex and only in Blue chip areas with maximum of 25 units . Building cannot be done in phases and only Duplex or simplex units will be paid for. In double volume ownership units only bottom floor units will be paid for.

This is not an easy option so keep this in mind!

Standard Banks Great Product - BUSINESS MORTGAGE

Standard Bank residential home loans department offer a fantastic product known as a BUSINESS MORTGAGE.

This means you can via normal residential homeloans departments (Where you get great interest rates and service) buy and finance a business (SEMI COMMERCIAL)

Perfect example is a house that you use for your business in fact as long as there is a residential portion to it.

Limitations - 80% loan not 100% loan but you still get a great rate

Fantastically done Standard!!!!!!!!!

Wednesday, 14 February 2007

Homeloan Tips and Tricks

The Bond Originators - Did you know?

  • Up to 49 people can share one home loan.
  • You cannot purchase property if you are under 21. Bummer!
  • A bank will assist you with the money for your Attorney fees - On Top of a Home Loan.
  • If you cannot afford a home loan on your own, you can share with friends, family or even get someone to stand surety for you.
  • You should only use 25% of your gross salary towards a home loan. If interest rates rise - AND THEY ARE BOUND TO - you want to be covered.
  • A Bond Originator will help you get what you deserve - its hassle free!
  • DO NOT PAY A BOND ORIGINATOR - the banks will.
  • Make sure you check your offer to purchase carefully - better still get a legal buddy to help.
  • Increase your monthly bond installments slightly, even R50 a month more will drop you bond repayments incredibly over 20 years. Speak to any bond originator or mortgage origination company and they'll tell you. Actually most mortgage origination sites will have bond repayment calculators that will show you how much you'll save every month. Check
  • Pay lump sums and bonuses into your bond. The quicker that mortgage loan rate comes down the better for you. Plus which other account do you know that will pay you an interest rate of 12.5%
  • Don’t lower your home loan repayments when rates drop. Keep it up. Make this your monthly "stowe" away for any extra money that you may have. This is recommended by all the top bond originators.
  • Email THE MAGE for questions!!!!

Introducing: Chris "The MAGE"

Serving up the goodies as the head WIZARD is my game and anything you need to know about the residential property business, especially financing is food for me. Email me at The Mage and it will be a pleasure to give you financial food for thought.
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Or we can just CHAT right here...

Interest Rate Increase - SO WHAT!!!!

wizard midrand INTEREST RATES INCREASE - 10 APRIL 2008 - READ ON


I will help you understand and manage interest rate changes so that you never feel the pain. Change will happen! But so will your money management.

Become your own banker in the process. We pay thousands on charges, costs etc and all we need to do is change the way we work. Make your bond account you financial friend and interest rate changes become a thing of the past..........Its a killer

your advantage – Wizard Midrand

I deliver because I believe that – GETTING A HOME LOAN IS ONLY HALF THE JOB DONE!

Tuesday, 13 February 2007

Mortgages - What are they?

Day 1 in the life of a mortgage originator:

Nobody's viewed my first BLOG posting, but HEY that's no surprise. I'm sure I'll have millions tomorrow ;-)

I thought we'd start the first topic off with a good old question:

"What is mortgage origination?"

I'm going to try not bore you as this is most likely a definition pulled straight out of the dictionary, but at least if you find this page and you're anything like any of my mates (sorry guys) you'll have a clue as to what this blogs about.

Mortgage origination is a well established worldwide. Things may differ slightly from country to country depending on the nature of the residential mortgage industry but the concept is pretty much the same.

In South Africa, where the residential mortgage market is dominated by four major institutions, the concept has a very distinct and unique flavour. The industry has been established for some five years now and could equally have been termed mortgage broking. Put simplistically mortgage originators, looks to attract clients requiring finance for a residential property and then placing that business with one of the major financial institutions (This being the banks, ABSA, FNB, NEDBANK, STANDARD BANK. Those institutions would pay the commission to the originators, thus you pay nothing! - What we do forget to mention here, is that you pay for the bond, transfer fee's etc but you get my drift.

It just makes so much sense in using a bond originator. They do all the hard work for you, they get you the best rate and if you have any financial difficulties or bad credit records, that's where they're ultra AWESOME. Banks can be real crappy in these situations...

Well. Let me go do some work. I've been faffing on this BLOG for too many hours and now I'm doing nothing at work all day. Lets hope nobody reads this BLOG right??? ;-)


Monday, 12 February 2007

Off to bed but I need to try out my first posting...

Well everyone, finally after months and months of wanting to create my own blog and months and months of procrastination I've finally grown the "balls" to do it.

Before I go off to bed though I want to tell you what the aim of this blog is and what brought upon this sudden thought!

South Africa is going through massive growth and reform in it's "PEOPLE", "BUSINESSES" and "MARKETS" and with so much going for us I think it's time people started offering FREE services and free advice to our youth and underprivileged.

I know what you're thinking, how is this puny little blog going to spread, well I have absolutely know idea, but I'm going to try anyway. I want people to express their feelings and provide as much assistance to those Home Owners, Home Buyers and people seeking financial assistance.

I work for a company called Wizard Midrand Home loans. We are a bond origination company and we have staff and family here that are willing to spend the extra time in helping those individuals that need it.


Over And Out.