Paris Hilton, hehe, you must be joking, just looking for some good link bait so people will start commenting on my BLOG again. Pretty sad isn't it! Anyways... Here is a pretty good article. Some positive prospects for the South African Property Market.
Looking Ahead
Slow market but property is still a valuable asset.
Reports show that the property market has hit a seven year low and the slow down should be seen as evening out of a significantly higher base value. That’s good, especially for buyers.
According to bank reports interest rates are likely to remain high for 2008 and that the South African Reserve Bank will keep rates on hold due to the visible slowdown in consumer demand. However, the unfavorable short-term outlook for inflation means that the risk of further interest rate increases remains, which places further strain on household finances.
There are a few options that can provide you with some interest rate relief:
Extend your bond term to 30 years thus reducing the monthly repayment. This does mean that your interest amount will increase over the term of the loan.
Another alternative is to consider fixing your home loan rate for one or two years. Then your monthly home loan repayment will always be the same, therefore, creating peace of mind.
Arrangements can be made if experiencing difficulties in maintaining your monthly payment:
Arrange with your bank to pay arrears over a stipulated period of time (catch up the arrears installments over an agreed period)
Reducing payment for a period (after this period you must have the ability to make your normal repayments)
All these arrangements are great news for home owners, therefore, love your home and make a plan and ask for assistance.
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