10% rate So whats my savings!

 For every R 100,000.00 home loan you save a minimum of R 33.36 per month or R 8,006.40 over 20 years

If you have a R 500,000.00 mortgage you save a minimum of R 168.79 per month and thats a whopping R 40,509.60 over the 20 years - the price of a second hand car.

Thank you Gill you are on the Marc(us)

Market Update - GBP / ZAR - what do the UK Forex boys say!!!

The South African Reserve Bank cut interest rates yesterday in a move designed to slow down the rapid appreciation of the Rand. Moving rates down to 6.5% the bank expressed concerns that the currency's strength may hinder exports and derail the fragile economic recovery. At 6.5% the Rand remains one of the highest yielding currencies, and has benefitted from strong investor risk appetite and low yields elsewhere (just 0.5% in the UK for example).


Now what do you say!!

Prime Rate DROPS! Awesome Times!

The South African Reserve Bank this afternoon announced a reduction of 0.50% in the repo rate, which will result in the banks’ prime lending rate reducing to 10.00%.

All the necessary changes to our systems will be effected this evening to ensure that our affordability calculators for home loan applications and pre-qualification applications will reflect the new base rate of 10.00%.

This is GREAT NEWS!!!

FNB Housing Finance (Lower Income)

FNB Housing Finance - Rules for Developments – Pre-Valuation Qualification.

To simplify the process for both developers and bond originators, we’ve changed some of the rules that govern the Pre-Valuation of our housing developments for end-user finance:

• FNB Home Loans and FNB Housing Finance will consider providing end user finance (top-structure or building loans) for developments with unit prices <= R500 000


• We will bond a minimum number of 30 units. Developments with less than 30 units will be regarded as retail business and retail rules will apply.
• Income rule for developments where approval has been granted, will be as follows:

70% of customer deals may not exceed the income rule of R15 000 joint or individual.
30% of customer deals may exceed the income rule of R15 000 joint or individual.

Please note that FNB Housing Finance does NOT entertain investors or legal entities.

NEDBANK - A GREAT Balancing Act - to get a Home Loan!!!!

Well I am impressed when I hear a  credit manager tell me what is needed to get a home loan - open policy - nice to see Nedbank .

Three pillars of strength needed folks - thats all so YOU WANT A HOME LOAN then -

RISK - You need to make the bank feel that all the risk is not only on their shoulders but also on yours.  So what do you need for this - A deposit reduces the banks risk and adds yours into the pot, so start saving.  Be a smart finance manager, so manage your accounts and VERY VERY important PAY YOUR ACCOUNTS ON TIME or in ADVANCE.  Never pay late.  Nedbank, like most banks have an internally risk rating of you as a client, so contact your Mortgage Broker and get your risk rating in advance, THEN apply for a mortgage only.

SECURITY - Well no one wants to be left hanging and neither do the banks and this is not particular for Nedbank only.  So make sure what you buy is acceptable for the banks to finance.  If a sectional title flat or apartment get the body corporate financials and make sure the body corporate is in the black (positive cash flow), not to many arrears and outstanding levies, and up to date paid insurance.  Then the bank will feel comfortable as well.  If you have just started a job, make sure you supply your job contract together with a payslip.  Its all about feeling secure. 

Ask your broker.

AFFORDABILITY  - If you want to be declined then dont justify what you can afford.  Remember 30% of your income is the MAXIMUM that the banks will allow you to spend on your home loan.  THATS IT!

DO NOT INFLATE YOUR SALARY AND INCOME! OR DEFLATE YOUR EXPENSES! If it is unrealistic the banks will automatically add an additional 25% to your expenses and once declined on affordability it is very difficult to convince credit managers otherwise.  IT IS TO PROTECT YOU afterall!!!!!!  Ask your mortgage advisor to assist you before you have a bash yourself.

Lovely, easy and A GREAT BALANCING ACT!

Take advantage of SA's 2010 world cup and make some bucks!

Well with the world cup 2010 around the corner we expect many South African property owners to jump on the bandwagon. BAND ON THE RUN – everyone in SA property wants to make some money out of the 2010 World Cup – and why the heck not – everyone else has. Look at the Abu Dhabi inaugural grand prix, everyone was renting their apartment or house out , each Olympic games, Rugby world Cup, Cricket events, Golf, so why not the 2010 World Cup.

So what can we expect and what’s hot right now. Everywhere and everyone is creating 2010 world cup based websites for 2010 rentals, rooms, cottages, packages and in the background the real estate companies are preparing packages of every shape and size to entice the visitors from UK, USA, Africa, Europe, South America and Asia to buy a slice of South Africa and a very tidy profit.

The mortgage originators know that non residents visiting and buying property during the 2010 World Cup will get 50% mortgages and smartly if someone is visiting SA getting discounted currency transfers to and from South Africa for 2010 is an absolute must if you want to save thousands of rands or Dollars or Pounds on transfer fees. So who is offering some exciting stuff.

Well for currency transfers visit Forex Fundi.
Well for information on financing of all kinds – and this you should get to know.

For accommodation and travel – knock yourself out – I doubt of you could keep up – just come to south Africa for the 2010 world Cup – we welcome you with open hearts. Only if you support Bafana Bafana.

DUMELA!

Saving money on home insurance

Home Insurance to cover your bond is one of those things in life, that you pay for ever month, and sometimes you think that it is a waste of time, effort and money.

Since the inception of the National Credit Act on June 1st 2007, individuals have been permitted to shop around for better quotes on their bond insurance, and not been forced to take out insurance with the bank’s insurers.

The problem with bank insurance is that it's expensive, but people get pressurised into using it and land up not going with a reliable home insurance broker.

Should the owner of the home become ill or incapacitated for any reason, the insurance will kick in, and the bond will be covered until the owner recovers. Leaving behind a family when you die is really hard on your loved ones left behind to deal with all the red tape that is so often the case when there is an estate to wind up.

STOP GIVING THE BANKS MONEY THEY ALREADY HAVE :)

The clever thing to do, is to ensure that you shop around for the best possible deal that is available for your house or home bond insurance , saving you thousands.

Save time, save money and get 9 FREE independent insurance quotes today.

Rand flexes some muscle and looks like a relatively low risk bet for once

So the Rand gained one percent against the Pound last week, and promptly gained a further three percent when things got nasty yesterday, the largest one day rise since March 2009 .

Muscling in on the turf.

Such a good start to the week! But not for the Sterling boys.

So what can they expect - A weekend poll showing a high probability of a hung parliament set the scene for a wobbly week, but it was no one factor that triggered the big slide. Another contributor was Prudential's announcement that it will purchase AIG's Asian life insurance business. That will require the sale of a large amount of sterling to fund the $35bn price tag, most of which is to be paid in cash. Markets were also spooked by news items concerning Iran's failure to cooperate with nuclear watchdogs the IAEA. Sentiment toward the pound has been deteriorating sharply in recent weeks, and any one of these news items were excuse enough to cause a stampede for the exit. An apparent improvement in manufacturing activity was completely ignored, and mixed mortgage data did nothing to contribute. The prospect of low UK interest rates remaining static for a long period further differentiated the high yielding currencies, helping the Rand make hay from sterling's weakness. Firm commodity prices also made the Rand look a relatively low risk bet for once. Stock markets are also doing well, so investor risk appetite is buoyant, except when it comes to sterling.


The technical outlook is dire. They are trading at four year lows this morning, and momentum is extremely negative. The next noteworthy technical support is around 11.15, and below there a further fall to 10.50 would be likely. Despite the recent deterioration it would be prudent to cover at least half of any Rand requirement now to reduce risk. No one knows whether this is just the start of a sterling crisis, and all evidence points toward a lower pound.

So 2010 may be a windfall after all for the Rand, but what impact on those sepnding sterling out here.

Dynamics of Abu Dhabi Real Estate Market - Are you an investor?

I think as a South african who invests in world markets keeping your finger on whats happening in the prime jewel of the Middle east (Especially when it comes to who owns whom), this is one report worth reading.

Abu Dhabi State of the Market Report 2010

Abu Dhabi controls the purse strings and this should be a reminder of whats to come.

Many visitors to South Africa during the 2010 World Cup, come from this region and expect some hard sales during this period - so forewarned is the answer.

Thanks Investment Boutique, you guys rock and roll.