Cash vs Home title deed

[deweyzeph]

This. My bond on a 5 bedroom house is now down to 6 500 per month after last years interest rates. In this area, a 2 bedroom townhouse can easily rent for 10 000 per month

The other thing people fail to consider when comparing a bond repayment to a rental price is what proportion of your bond repayment is interest and what is capital repayment. The interest you pay on your bond every month is essentially "rent" that you pay to the bank for the pleasure of staying in your house. When I first started paying off my house the interest made up almost 80% of my monthly bond repayment. Now, 6 years later, and with the low repo rate, it only makes up 50% of my bond repayment.

Plus, your bond is the best tax-free savings investment you're going to get. When you put your savings into your access bond you're essentially getting an interest rate of 7 to 9%, and it's absolutely 100% tax free. You're not going to get a better deal than that.

 

[holler]

If you're worried about liquidity in the event that you leave RSA quickly, I would say keep your bond at maximum at all times and take any surplus funds overseas.
That would mean taking up a re-advance on your homeloan every 3-5 years and chucking that overseas. The re-advance would be equal to capital repaid, plus capital growth on the house.

 

[Corelli]

It's also a good idea to open up an offshore bank account and store your cash in foreign currency. I don't understand why more people don't do this when it's so easy to do. Any South African who values their savings should be storing it in an offshore bank account.

We now refer to that as crypto, and in a digital wallet, its pretty much wherever you are. With government unable to track digital wallets. Or well paper ones as some do allow.

 

[Corelli]

Just note officially Europe and America is bankrupt.

Asia may be a better place for investment.