Buying a house

J

Jelly-tot

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Hi guys. Im currently in the process of buying a house seeing that my car will be paid up in september this year. My question to you is, is it the right time to buy a house now given the current state of the SA economy and is fnb's rate of 10.69% reasonable given that its the lowest i got from all the banks. Is one able to negotiate for the current lending rate of 10.25% with them, if yes, how do i go about it?

Thank u in anticipation.
 
I was recently robbed blind legally by fnb. I hope you don't get robbed too
 
I would say it is ok, if you aren't buying at the higher end of your budget. Prices are falling (or about to fall in some areas) due to the interest rate and increase in sales due to renting becoming less of an option.

Ideally you should wait a few more months for the market to fully reflect the increase in the repo rate, but depends on your situation. As for the rate, that depends on many things (i.e age, job, risk, etc) but a week ago i got approved at prime -1.5% (effectively 8.75) but as i said depends on lots of things.( Two of my friends also just applied, neither of them could get prime even)
 
Thanks 4cer...I dont think I can wait any longer, as my rent is a grand less than the projected amount I will pay on the house and at 36 years of age with a 4 months old baby feel its about time I get a property that is mine and not raise my daughter in a flat.
 
Apply for a bond over 25 or 30 years in order to attract a better interest rate, but you will obviously need to be disciplined enough to pay the bond off over the original 20 year term or earlier if possible. A few weeks ago, I qualified for 90% at Prime -0.2 over 25 years with Nedbank. First time buyer.

Despite this, I am aiming to pay the house off in 10 years.
 
Buy as soon as possible and pay extra into the bond from day 1 all extra cash you have... it WILL pay off do the calculations.
 
I just bought 3 months ago, best decision ever, also in the same boat with a 9 month old son... That rate isnt bad, I got prime -0.4% but i paid the purchase cost (approx R50k) and an additional R100k as a deposit. Just make sure you can afford an extra 1-2% in interest rate increases over the next two years and if you can, it would be perfectly fine...
 
I say the sooner you can buy the better - rather pay off your own bond than someone else's. As long as you can afford it and you have some leeway for possible interest rate increases. Aim to pay more than the monthly payment (or buy something where you can do that) - you can cut off years (and thousands in interest) by just paying a little bit more in every month. Play around with the online home loan calculators on the banking sites to see how much you can save.
 
Nice tips!

I signed for a new place this weekend as well :)

Just waiting for my bond approval. Hoping it will be at a good rate.
 
Thank you so very much guys for your inputs. I surely will go ahead with the purchase as I m tired of paying someone else's bond.
 
Jelly-tot said:
Hi guys. Im currently in the process of buying a house seeing that my car will be paid up in september this year. My question to you is, is it the right time to buy a house now given the current state of the SA economy and is fnb's rate of 10.69% reasonable given that its the lowest i got from all the banks. Is one able to negotiate for the current lending rate of 10.25% with them, if yes, how do i go about it?

Thank u in anticipation.
Click to expand...

I'm with FNB and they gave me prime +1%, shopped around and eventually settled with Absa at prime minus 0.29% which best I could get, think if you can get a rate equal or below prime = lucky!
 
Goliath said:
I'm with FNB and they gave me prime +1%, shopped around and eventually settled with Absa at prime minus 0.29% which best I could get, think if you can get a rate equal or below prime = lucky!
Click to expand...

I got prime +0.8% so waiting for other banks now before I make a decision.
 
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