Home Loans

It’s probably the largest debt anyone will ever take on, so securing home loans is not something to be done hastily. Because of the money a person would borrow and how much is repaid in interest, it’s imperative to do all the homework possible before taking on such a debt.There are ways to save money on home loans no matter the amount and no matter one’s credit standing and financial picture. However, the lenders are not always going to explain these things to borrowers and they themselves may not be the best source for advice. They can tell you certain things that might be done to improve your credit rating and to qualify for better home loans from them in particular, but before you meet with anyone you want to start with your own finances.Here are some quick but important tips for saving on home loans.

Start With Your Finances

You probably don’t need perfect credit or a huge down payment to qualify for all home loans, but obviously the better your financial picture, the better the interest rate you’ll get. Having a larger down payment also means being able to lower your monthly payments and means having smaller home loans to begin with; this means saving money since you’re paying interest on a smaller amount right from the start.If you don’t have a good understanding of your financial picture this will not help you to save on home loans. You may not want to see your credit record or go over your savings accounts to see how much of a down payment you have, but avoiding it won’t help any. In some cases it may be better to put off shopping for home loans for six months or so while you catch up on other expenses and pad that savings account. While it might be difficult to put off the purchase for now, remember that purchasing a house is a decision that will affect you for a lifetime, so think about where you’ll be financially several years from now if you can be patient and go through the process when you’re ready.

Lowering the Amount Due

It’s tempting to look only at your monthly payment when shopping for home loans, but the overall amount due needs to be considered. Remember that the more you borrow up front, the more you’ll be paying in interest over the life of those home loans. If you can save up more of a down payment this will help; think carefully about the option of stretching out the loan over more months and years simply to afford the monthly payment. It also helps to overpay the mortgage due on those home loans. Even if it’s just a little bit every single month, this will help to pay down the interest and the overall amount due. The more you can pay on the note itself, the less you’ll pay in interest over the life of those home loans.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Property remains a viable asset class in which to invest and still forms one of the most important investment cornerstones for South Africans. For those who are currently looking at investing in a property, the timing couldn’t be better.

Since buyers’ market conditions prevail, those who do their homework thoroughly and follow sound investment advice are sure to reap solid returns in the long run.

There is no doubt that South Africans are spoilt for choice when it comes to property investment options. From bachelor flats and apartments to game farms and small holdings and everything in between, buyers have a range of property types from which to choose.

However, location remains the most important factor when purchasing a property – no matter what type of property it is – and so buyers need to select the area in which they invest carefully. Buyers also need to take the time to investigate the relevant properties on offer in their area of choice and compare the costs per square metre, the fittings and finishes etc.

When looking to invest in a residential property as a primary home, buyers need to consider what their needs are and identify which accommodation options best suit their requirements. Those buyers looking to invest in leisure or rental property will have completely different requirements to buy-to-live purchasers and those who are looking to buy vacant land.

For example, first time, single buyers looking to get their foot in the door should consider investing in an apartment while townhouses, on the other hand, are an ideal property type for young couples or those wanting to scale down for retirement.

Those purchasing a property in a sectional-title scheme or apartment building should check the rules and regulations governing the building or scheme, particularly ones regarding pets, visitor access, parking and maintenance.

While single detached dwellings are by far the most common form of housing in South Africa, gated communities are another popular option of freehold property, because homeowners often have access to a range of facilities and amenities within the estate. These kinds of properties are very popular among families or young couples who want to start a family in the near future. This is because of the lifestyle elements they offer where children are free to ride their bikes around the neighbourhood, play in the communal parks or play areas with the security of the estate to ensure residents safety.

No matter what type of property buyers are considering purchasing; there are some questions buyers need to ask before making one of the biggest financial commitments of a lifetime.

These include:

Why is this a good area in which to invest?

• Are property values appreciating in the area? By how much?
• Is the neighbourhood well maintained?
• Is the neighbourhood safe?
• Are more and more houses being built or bought in the area?
• Is the area mostly zoned for residential properties?
• Are roads well maintained and is there a proper infrastructure in place?

Other important location considerations include:

• Is the area zoned for heavy commercial development?
• Are there noisy highways, airports, or railroads nearby?
• Is there heavy traffic in the area?
• Are future highways or developments planned within the area?
• Are there wastewater plants or landfills nearby?

When buying vacant land, buyers should ask the following questions:

• Are sewer and water lines available?
• How much fill removal or fill replacement is necessary?
• The cost of removing large rocks and boulders in order to build?
• Is there proper drainage on the land?
• Is the soil suitable for construction?

At the end of the day, a good investment can only be assured if a buyer has done all the necessary homework and comparisons and is sure that the investment they are making is worth the financial commitment they are laying down to acquire it. While the recession has meant that property is not appreciating at the rate it once was, astute property investments still have the ability to provide investors with solid gains.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za