Corona and the 1% rate cut | Expect sharp shock and extended processing for property sales
Home-owners who wish to sell now should anticipate that the process could take an additional two to four months – and then only if they are working with an agent with access to the most advanced property marketing and transaction management technology, as well as extensive local and international referral networks.
So says Berry Everitt, CEO of the Chas Everitt International property group.
The announcement by the South African Reserve Bank’s Monetary Policy Committee on Thursday that the repo rate is going down by 100 basis points from 6.25% to 5.25%, following January’s 25 basis point drop from 6.5% to 6.25%, is a welcome – and necessary – step to give the economy a much-need boost, particularly in light of the ongoing effect the Covid-19 pandemic is likely to have on the country.
This is how much you will save on your bond after huge 100BP rate cut
The repo rate has been cut by 100 basis points, will see a short-term reprieve for consumers as SA locks down the during Coronvirus national disaster - but experts warn to against the risk of bad debt.
The Reserve Bank’s Monetary Policy Committee cut the repo rate to 5.25% (from 6.25%) reducing the mortgage rate to 8.75% (from 9.75%) on Wednesday, 19 March.
Here's what you can expect to save and pay per month on the following bond values.
Click here to calculate your saving
Remote working pitfalls and what to do about it
South Africans are entering the second week of social distancing, thanks to the Coronavirus. This means many have for the first time joined the global league of professionals who work in a “virtual office”.
As we all aim to flatten the curve through self isolation, there are a few pitfalls to consider around this new Working From Home (WFH) environment - and certainly a few teething problems you might have encountered that need addressing.
Here are three that will go a long way to ensuring you remain in the smooth zone, while working during self-isolation:
Ensure a solid Internet connection and never work from bed!
Setting up your remote working environment is absolutely crucial - but nothing will drive you loopier than an unstable Internet connection. While you don't need to go for the most expensive package - be sure to check on your line capacity when it comes to upload and download speeds. This also depends on the type of work you do.
Before you take out a 100% home loan, consider this
The first-time buyers’ market was stimulated by the recent announcement in the budget speech to adjust the threshold for transfer duties. While removing this cost on homes priced up to R1 million will help many first-time buyers enter the market, buyers will still need to cover the various additional costs involved in buying a home, including deeds office transferring fees, bond registration costs, bank initiation fees and other administrative expenses.
This makes the option of a 100% home loan incredibly tempting. But you need to weigh the costs, like a higher interest rate.
According to BetterBond, the amount of 100% home loans increased by 34% and accounted for 49% of all bonds granted in 2019. It seems that financial institutions are increasingly willing to grant these sorts of home loans - and, it is not difficult to understand why.