Jehosefat Posted February 20, 2018 Posted February 20, 2018 All the new regulations that have come in since the 2007/8 financial crisis have made it a lot more expensive for banks to make loans to customers (higher capital requirements, higher cost of capital, additional liquidity and funding requirements etc.). Hence the pricing going up from Prime - 2% for really good customers to around Prime - 1%.
Help.Me. Posted February 20, 2018 Posted February 20, 2018 Sorry for the hijack, anybody on here with property that you are letting out? Is it still a good investment with the laws more in favour of the tenants?
eddy Posted February 20, 2018 Posted February 20, 2018 I was doing some economic research on historic exchange and interest rates last week and it reminded me of my first house purchase. After PW Botha's Rubicon speech the ZAR lost 20% in a day and after the debt standstill was announced prime (which was really prime i.e. for very best - read corporate - clients) went to 25%. Mortgages were priced at prime+. That is where I got my aversion to borrowing for all but the most necessary purchases from.
Letum911 Posted February 20, 2018 Posted February 20, 2018 Sorry for the hijack, anybody on here with property that you are letting out? Is it still a good investment with the laws more in favour of the tenants? Laws at the moment do protect the tenants, however the Landlord is not without recourse if he does things right. If you do let out property make sure your lease agreement is solid, deposit is in place (and in an interest baring account), and your accounting system is running well. If these are done properly the law should run a fair course. From speaking to a few guys who rent out apartments a fair return is around 6-7% of your monthly bond and good around 9%.
MTBeer Posted February 20, 2018 Posted February 20, 2018 Sorry for the hijack, anybody on here with property that you are letting out? Is it still a good investment with the laws more in favour of the tenants?depends where your property is I guess. Is the potential return worth the risk. My one property bought in 2014 is now breaking even and has almost doubled in price and rental is now covering bond. So in the 3.5 years that I have had it I have invested about R100k of my own money (rates + levies) plus R120k deposit and transfers etc, and I'm up R800k to R900k and now the rental is covering all expenses and capital amount is still growing. Rental is also on 10% annual escalation. Was lucky with right time and right area. There isn't a one answer fits all for property.
Long Wheel Base Posted February 20, 2018 Posted February 20, 2018 Sorry for the hijack, anybody on here with property that you are letting out? Is it still a good investment with the laws more in favour of the tenants?I have 3 rental properties. If you do your checks right you can prevent a lot of headaches later on. I use TPN and for about 200 bucks I can do a full credit check on the potential tenant. Trust me when I say I have done a few checks and straight away told the person to go look elsewhere.
Long Wheel Base Posted February 20, 2018 Posted February 20, 2018 depends where your property is I guess. Is the potential return worth the risk. My one property bought in 2014 is now breaking even and has almost doubled in price and rental is now covering bond. So in the 3.5 years that I have had it I have invested about R100k of my own money (rates + levies) plus R120k deposit and transfers etc, and I'm up R800k to R900k and now the rental is covering all expenses and capital amount is still growing. Rental is also on 10% annual escalation. Was lucky with right time and right area. There isn't a one answer fits all for property.YOH that's a lot. I have never put the rent up more than 4%(I have it in my agreement that it can be anything up to 5%). One of my properties is up for lease renewal end March and she is getting a 1.5% increase(Rent currently R6900).
MTBeer Posted February 20, 2018 Posted February 20, 2018 YOH that's a lot. I have never put the rent up more than 4%(I have it in my agreement that it can be anything up to 5%). One of my properties is up for lease renewal end March and she is getting a 1.5% increase(Rent currently R6900).10% is pretty standard in Rondebosch Kenilworth. Highly sought after area. edit Sorry wrong one
Cappi Posted February 20, 2018 Posted February 20, 2018 10% is pretty standard in Rondebosch Kenilworth. Highly sought after area. edit Sorry wrong oneRondebosch / East,Kenwyn,Claremont, Kenilworth are all well sought after. close to top schools and UCT. properties seldom stand empty or even take long to sell. massive demand from the joberg'ers and Durban folk. We own 3 properties in the area and get 10% increase easy. without the tennants counter offer.As for bank interest rate i got -1.95% in 2008. my banker told me not to close my access bond as i will never get this rate again.
Let's Ride Posted February 20, 2018 Posted February 20, 2018 Own one property paid for and busy buying a rental property in Woodstock. UdZ so we get 50 percent back of the purchase price over 10 years. Hopefully it turns out too be a good investment. Hopefully for our retirement.
Let's Ride Posted February 20, 2018 Posted February 20, 2018 Getting a bond for the rental property. Will let you know what rate we get.
The Ouzo Posted February 20, 2018 Posted February 20, 2018 my bank loves me. They phone me every month to see how business is going.Its just a pity they always run out of money and have to ask me for some.
Shebeen Posted June 26, 2019 Posted June 26, 2019 back on this topic. anyone used fnb's move your home not your bond? https://www.fnb.co.za/home-loans/move-home-not-home-loan.html my current (2006) rate is prime -1.8% I'd like to keep that! I'd also like to grow it
Recommended Posts
Archived
This topic is now archived and is closed to further replies.