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Question of the Day: Have you ever ordered a product online and received a fake knock-off?
Can you pay your bond?
- Thread starter Pixual
- Start date
Soon the banks will start repossesing houses.
Try the auctions then.
Also when a house is repossesed, the banks will accept offers of 80% of the outstanding bonds.
diebaas
Senior Member
Been to an auction and if you dont have a good capital backing you cant compete with the rich okes, cause they just push the price untill you cant compete anymore.
I personally know of a guy that ownes 10 houses in my area and 5 of them he bought recently on auctions.
There is no way they can buy all the houses that will come on auction soon.
Drove through my town yesterday.
approxamately 30% of houses is on the market.
Housing market is definately a no-no to invest in on the short term right now.
diebaas
Senior Member
Looked over the weekend in my area and its the same story 30% or more, well lets just say in every road there is about 2-3 houses in the market.
R350 000 for a 1000sqm stand now think for yourself what houses is going for.
Wait another 6 months to a year before you buy.
The legal process to reposess a house is a long drawn out affair.
At this stage people are trying to avoid losing their houses, and are desperate to sell,thinking they can still make a profit, however small.
Lots of people overextended themselves recently.
The interest rate is catching up.
There is another on it's way.
Think it will be at least 1%.
Then the paw-paw will really hit the fan.
Actually the whole idea originally was to sweat it out as I bought in an area I could ill afford, then when I retire, sell it, spend half on a place down the coast and add the balance to my pension, but crime has gone through the roof, and this house is now like fort knox, also town houses are now rediculousy priced thus defeating the object of selling and saving some etc, so we have decided to just stay put and hope that the rates don't go too high
Actually the whole idea originally was to sweat it out as I bought in an area I could ill afford, then when I retire, sell it, spend half on a place down the coast and add the balance to my pension, but crime has gone through the roof, and this house is now like fort knox, also town houses are now rediculousy priced thus defeating the object of selling and saving some etc, so we have decided to just stay put and hope that the rates don't go too high
I remember not so long ago it went up to 24%.
It will increase this year.
I would say that the long term trend (2 to 4 years) is down, but in the short to medium term (2008) we may expect one or two Repo Rate increase/s upwards to 11.5 or 12% before the next cycle downwards (End 2008 into 2009 and beginning of 2010) to 8.5% by 2010 or shortly thereafter.
Hard to predict a direction beyond 2010 as unforseen World Events can play a factor plus the Political Situation in South Africa?
Political events will play a major role in the run up to the election.
Lots of insecurities there.
The zuma factor might influence overseas investors.
Interesting article, particularly with regards to the income groups most impacted.
The Weekender – 23 February 2008
The debt abyss lures more SA consumers – Michael Bleby and
Nicola Mawson (abridged)
Nedbank Retail MD, Rob Shuter Costlier, said debt has doubled the number of people unable to pay their loans from a year ago. The worst-hit group for house repossession over the past six months is the middle-income market, which Nedbank defines as a household income of between R100 000 and R400 000 a year.
Absa Vehicle & Asset Finance Managing Executive, Marcel de Klerk, said the bank has seen a ‘definite increase’ in the number of repossessed vehicles, especially among households earning up to R240 000 a year. This income group accounts for about 85 percent of repossessions
The Weekender – 23 February 2008
The debt abyss lures more SA consumers – Michael Bleby and
Nicola Mawson (abridged)
Nedbank Retail MD, Rob Shuter Costlier, said debt has doubled the number of people unable to pay their loans from a year ago. The worst-hit group for house repossession over the past six months is the middle-income market, which Nedbank defines as a household income of between R100 000 and R400 000 a year.
Absa Vehicle & Asset Finance Managing Executive, Marcel de Klerk, said the bank has seen a ‘definite increase’ in the number of repossessed vehicles, especially among households earning up to R240 000 a year. This income group accounts for about 85 percent of repossessions
diebaas
Senior Member
The poor will get poorer and rich will get richer
Sad but true.
If only we as South Africans saved for a rainy day instead of overextending ourselves.
Unfortunately there are not many incentives to start a saving culture ,is there?