Streaming issues? Report here
John Maytham 2019 1500 BW John Maytham 2019 1500 BW
Afternoon Drive with John Maytham
15:00 - 18:00
volume_up
volume_mute

Up Next: The Money Show with Bruce Whitfield
See full line-up
Afternoon Drive with John Maytham
15:00 - 18:00
Home
arrow_forward
Local

Is now a good time to buy a property?

30 June 2020 2:16 PM
Tags:
Property
!Khomani Cultural Landscape
Cape Town property
interest rate
buy property South Africa
Buying property
CoCT property
Africa property investment
bond repayment

With the prime lending rate having dropped more than 2% since the start of the year could now be a good time to buy a property?

One of the most common questions when it comes to buying a property is 'when is the best time to buy?'

According to corporate specialist financial planner Slyvia Walker now is a great time to take advantage of record-low interest rates:

In January the prime interest rate was at 10%, it's now 7.25% so it's come down significantly.

Sylvia Walker, Corporate specialist financial planner 

She says that makes a huge difference in terms of how much one is able to borrow:

If somebody is earning R30 000 a month, earlier this year at 10% they would have qualified for a loan of about R932 000, now with the lower interest rate they can qualify for a loan of around R1.13 million.

Sylvia Walker, Corporate specialist financial planner 

Because the interest rate is low, the criteria the bank would look at in terms of your income is obviously a lot easier now to afford the property you want...

Sylvia Walker, Corporate specialist financial planner 

However, Walker says there are considerations to make before taking the biggest loan you can get:

What happens if that interest rate starts to climb, it might become unaffordable.

Sylvia Walker, Corporate specialist financial planner 

Walker says to avoid any nasty surprises when it comes to their home loan repayment, some people opt for fixed-rate bond:

The fixed interest rate is normally about 1-3% higher than the current rate, and it's really a bit of a gamble.

Sylvia Walker, Corporate specialist financial planner 

Listen to the full interview below:


30 June 2020 2:16 PM
Tags:
Property
!Khomani Cultural Landscape
Cape Town property
interest rate
buy property South Africa
Buying property
CoCT property
Africa property investment
bond repayment

Recommended

More from Local

cape-town-stadium-green-point-123rf

Anchor tenant deal between CT Stadium and WP Rugby enters 'advanced' stage

3 July 2020 1:08 PM

Cape Town Stadium chief executive Lesley de Reuck says officials are finalising the first draft of the anchor tenant agreement.

Share this:
Read More arrow_forward

cleaner-domestic-worker-house-keeper-yellow-glovesjpg

'Domestic workers struggling to access government's special Covid-19 relief'

3 July 2020 12:11 PM

Sadsawu's Myrtle Witbooi explains many domestic workers aren't UIF registered and the direct contact number is hard to access.

Share this:
Read More arrow_forward

bambi-fatmanjpg

Lone hippo finds a new home and companion in Mossel Bay

3 July 2020 11:04 AM

A lone hippopotamus that was found wandering near the Rondevlei section of False Bay Nature Reserve last year has finally found a home.

Share this:
Read More arrow_forward

shack-reerected-in-emplwenipng

Leaked City WhatsApp chat shows ordering destruction of shack again

3 July 2020 10:06 AM

A video of City of Cape Town officials dragging naked Bulelani Qholani from his shack in the Mpolweni site went viral.

Share this:
Read More arrow_forward

Covid-19 coronavirus testing 123rf

UCT epidemiologist: Covid-19 will be with us for at least a year to 18 months

3 July 2020 9:02 AM

Prof Boulle says W Cape trend a lower, flatter trajectory that will continue for a long time but is easier on the health system.

Share this:
Read More arrow_forward

oxygen-mask-medical-care-hospital-respiratory-illness-Covid19-coronavirus-123rf

[UPDATE] Western Cape braces for 'longer and flatter' Covid-19 peak

2 July 2020 7:47 PM

Premier Alan Winde says the province's coronavirus peak will likely be flatter, later, and longer, according to epidemiological evidence.

Share this:
Read More arrow_forward

cemetery-tombstone-gavesite-pexels-free-imagejpg

'Abnormal' number of natural deaths suggests 'not all Covid deaths get reported'

2 July 2020 7:00 PM

The South African Medical Research Council (SAMRC) has reported an unusual increase in the number of natural deaths in South Africa.

Share this:
Read More arrow_forward

171207licence-sajpg

AA calls on Mbalula to extend licence renewal period to 2021

2 July 2020 5:35 PM

The Automobile Association (AA) has called on Transport Minister Fikile Mbalula to extend the validity of all licences until 2021.

Share this:
Read More arrow_forward

empty-school-desk-chair-classroom-grade-learning-education-teaching-pupils-123rf

Education department halts school return for some grades

2 July 2020 4:12 PM

The Department of Basic Education has backtracked on which grades will be allowed to return to school next week Monday.

Share this:
Read More arrow_forward

empolwenijpg

Suspend Richard Bosman, JP Smith and Malusi Booi immediately - Ndifuna Ukwazi

2 July 2020 3:25 PM

Social justice group Ndifuna Ukwazi has called for the immediate suspension of senior city officials who ordered the evictions in Khayelitsha.

Share this:
Read More arrow_forward