S.A. Slapped Again!

It's seems my predictions in my post 30 minutes ago were WRONG!!!

Another interest rate hike has slapped us on the rear! Tito Mboweni announced that the reserve bank was to raise the repo rate by 50 basis points to 11.5% thereby increasing South Africa's interest rate to 15%.

Not all bad news though! For those of you putting in a little extra every month, the interest you earn on your money has just been raised by another .5%.

South Africa's Current Interest Rate is now 15%.

Interest Rate Slap ???

Well as we all know, it's interest rate decision time again today! I know everyone expecting a interest rate hike but if anyone listened to the FNB Property Guru on Radio 702 this morning things aren't looking that way....

According to FNB, hiking our interest rates again will not curb inflation but will in fact damage the economy even more. The reason being that the sudden increase in the cost of living in South Africa and rising inflation is a GLOBAL problem not local, and hiking the interest rate will not curb inflation as inflation is currently being affected due to the increase in fuel prices, food prices and weakening rand.

So what can we expect??? Well I think we can expect 14.5% interest for the rest of the year!

Lets keep our fingers crossed and see what happens.

WizardMan Out

Paris Hilton: "S.A. Rates Will Stay The Same" - WHO THE HELL IS SHE!!

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.

Ombudsman, a good representitive to have on your side

A Gripe with Bank!

Once again we need to keep our eyes open dealing with banks, many banking clients aren’t sufficiently informed about their new rights because of the banks’ new responsibilities under the National Credit Act.

Clients need to be aware that they need to be informed about the full cost of credit. This includes your principle debt, all the interest you will pay, the initiation fee, administration costs and credit insurance. This pre-agreement /quotation must stand for 5 business days, which allows you to go to competitors and compare offers. Therefore, if you sign the final credit agreement it is assumed that you understand and agreed to it, you will not get any sympathy if you complain after signing.

But…….. you can turn to the ombudsman if you think the bank was reckless in lending you money as the credit legislation requires banks to do their homework before extending your credit. You can also contact the ombudsman if the bank increases the limit on your credit card/overdraft without your agreement. They may only increase your credit once a year – only by a limited amount and with your approval.

If you’re unhappy with the investment advice you’ve received from representatives of you bank you could also consider contacting the ombudsman.

Make use of the ombudsman, a good representative to have.

Bruna The Mistress~

Banks Close Doors on Bond Originators

It's a sad sad day in South African today, where the banks have officially closed the doors on bond originators. As of 12:00am this morning ABSA, STD, FNB & NEDBANK are no longer paying commission to bond originators for business brought to them...

This statement not yet released to the public means companies like, Bond Choice, MortgageSA, Ooba, Wizard Home Loans and other will need to rely on companies that offer securitization such as SA Homeloans.

It's a move that has everyone flabbergasted.
What NEXT???????

We need to start a petition, any suggestions?