Thursday, 24 April 2008
Interest Rates Going Up Again - Start Saving Now!
Incase you haven't heard, the real estate market is about to take a little knock. Yesterday the stats for inflation were released and inflation has jumped to a 5 year high of over 10%. This does not bode well for real estate markets in South Africa and it most certainly does not bode well for interest rates.
The problem is, we're expecting another 2 interest rate hikes this year. That means R1 000 000 house at a good rate (going rates are currently -1.7 / -1.8 below prime) will cost you:
R 12 653.00 per month
This is alot of money considering not even a 1 year ago the same bond was costing you:
R9321.31 per month
How many people do you know that get an annual increase of R3332 when we have an economy that's really having to fork out alot of additional funding just to keep their businesses running, with costs of fuel, electricity and generators jumping through the roof.
So here at SA Property, we're going to put together a 5 part series:
Saving Money - How To Afford A R1 000 000 House!