Bond interest rate

ambroseg1 said:
Repayment is between R22k and R25k depending on term length and interest rate.

I also live debt free. Only debt I do have is my current home loan of which I pay double payments every month.
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25k a month fck me in the pooper thats almost my entire salary just into a house.

I'll need to upskill like a master as my property tycoon dreams still has a long way to go it seems.

I can't fathom what profession you need to be in to own those houses I see when I drive up to camps bay.
 
Thor187 said:
25k a month fck me in the pooper thats almost my entire salary just into a house.

I'll need to upskill like a master as my property tycoon dreams still has a long way to go it seems.

I can't fathom what profession you need to be in to own those houses I see when I drive up to camps bay.
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They own businesses. I am sure one or two of them are CEO's of some or other listed company but owning a successful business seems like the way to go.

Or win the lotto / inherit from a rich uncle :D
 
F1ve_Claw said:
They own businesses. I am sure one or two of them are CEO's of some or other listed company but owning a successful business seems like the way to go.

Or win the lotto / inherit from a rich uncle :D
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I need to make my shares a success so I too can be one of those.
 
Thor187 said:
How much does it cost per month to pay that off.?



I am very new to this but I want to start buying property the greater of my wealth will be in shares, but I would like to own at least one physical home for myself and one Comercial property that I can rent out and sell when the price is right but long story short I'm not sure why would be the best save up till I have 1 mil and take out a 200k loan for a 11k property ( the other 100k would be to cover costs) or should I save up till I have say 400k and take out a massive loan like you have?

I don't want to be in dept for my entire life.

So far dept free I buy everything cash phones included.
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*debt
 
Just recently went through this. In 2008 I got prime minus 1.75%, come 2016 after negotiation and negotiation the best I could get is prime plus 0.0001%.

The banks absolutely refused to go minus anything and this is after a 100% clean track record. I even threatened to move all my accounts. This is on R300 000 on a 2.6 million rand house.
 
Thor187 said:
I don't want to be in dept for my entire life.
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if you understand how leverage works then you would not have this view, through using a loan (some else's money) you in effect can increase your wealth with very little "investment" from yourself (your own money), in effect increasing your return on investment (which is the goal) by multiples
 
saturnz said:
if you understand how leverage works then you would not have this view, through using a loan (some else's money) you in effect can increase your wealth with very little "investment" from yourself (your own money), in effect increasing your return on investment (which is the goal) by multiples
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Or you end up having so much debt you can't make a living anymore.

I'll rather stay clear of loans, heard way to many bad stories.
 
Thor187 said:
Or you end up having so much debt you can't make a living anymore.

I'll rather stay clear of loans, heard way to many bad stories.
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The issue is, you need money to make money - thus debt being good (in theory). Sidetracked a bit from the thread though
 
Thor187 said:
Or you end up having so much debt you can't make a living anymore.

I'll rather stay clear of loans, heard way to many bad stories.
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had I not used a loan, I would have had to save for the property I'm living in, and probably paid more than double for it

there are many similar stories on this forum

perhaps share your bad stories so we can get context, because debt works
 
I assume lending R1 Million to buy JSE:CTOP50 would not be wise?
 
saturnz said:
had I not used a loan, I would have had to save for the property I'm living in, and probably paid more than double for it

there are many similar stories on this forum

perhaps share your bad stories so we can get context, because debt works
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Purchased our first house with a 75% bond.
Paid in 2x what we needed to = money you save in access bind beats higher interrest rate you get on any savibgs account.
Paid for my wife's studies through bond + purchased a new car cash.
(All the time paying back the money at 2x the required monthly installments)

But: you need to be diciplined and strict with your spending otherwise it wont work for you....
 
Thor187 said:
I assume lending R1 Million to buy JSE:CTOP50 would not be wise?
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it depends on the research you do, if you go into it blindfold you may come undone

but borrowing to purchase stocks certainly is for the brave and not something I would advise if you have very little knowledge on markets or the stocks you are purchasing, this is probably why a bank would lend you R1m for a house but would be reluctant to do for stocks.
 
F1ve_Claw said:
They own businesses. I am sure one or two of them are CEO's of some or other listed company but owning a successful business seems like the way to go.

Or win the lotto / inherit from a rich uncle :D
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I am in middle management. My wife is a PA.
 
Grep said:
Just recently went through this. In 2008 I got prime minus 1.75%, come 2016 after negotiation and negotiation the best I could get is prime plus 0.0001%.

The banks absolutely refused to go minus anything and this is after a 100% clean track record. I even threatened to move all my accounts. This is on R300 000 on a 2.6 million rand house.
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So I shouldn't hold my breath for Prime and strongly consider 10.7% from SA Home Loans?
 
Try get an investec home loan. I was getting paid less than 12k a month and was offered prime minus 1.
 
beefymoocow said:
Try get an investec home loan. I was getting paid less than 12k a month and was offered prime minus 1.
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How did you go about applying? And when did you get this home loan?
 
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