Translate amortisation into big savings
BetterLife - South Africa
When you apply for a home loan, you will definitely hear about “amortisation”, and it’s important to understand how this works because it’s actually the key to good management of your mortgage.
“In simple terms, amortisation is the process of paying off a debt or a loan over a set period by making monthly payments that are each made up of two parts, the principal repayment and the interest repayment,” says Shaun Rademeyer, CEO of BetterLife Home Loans, SA’s biggest mortgage originator.
“The principal portion of the monthly total goes towards repaying the original amount you borrowed (the capital), while the interest portion obviously goes towards paying off the interest the bank is charging you in order to lend you the money.”
Translate Amortisation
Housing Review 2015 Q2
Absa - South Africa
The property market
The residential property market will continue to be driven by economic trends, household finances and consumer confidence, which will affect the affordability of housing and the accessibility of and demand for mortgage finance. These factors will be reflected in trends in property demand and supply conditions, residential building activity, property prices, property market activity, buying patterns, transaction volumes, growth in mortgage advances and home loan repayment patterns.
House price growth is forecast to remain in single digits in 2015 and 2016, with price growth expected to be lower this year against the background of the outlook for the economy and household finance-related factors. Base effects will also contribute to lower price growth in 2015 compared with the previous two years when nominal price growth of between 9% and 10% was recorded. Based on the current forecasts for nominal house price growth and consumer price inflation, marginal real price inflation is projected for this year and next year.
Housing Review 2015 Q2
Snoozing not an option for landlords
IolProperty - South Africa
Landlords who are slow in taking action against their tenants for rental arrears are likely to be burdened with legal costs and escalating arrears. Some landlords are generous and are willing to write off arrears if their tenants are willing to move out. The write-off is a huge loss for a landlord who relies on the rental income from a single property that he or she owns.
It is wise to have a written undertaking that the arrears would be written off on condition that the tenant moves out of the property on a specific date. This undertaking will help to bring an application through the courts for an eviction should the tenant fail to vacate on the agreed date.
In application proceedings, the landlord is certain that there are no dispute of facts. He or she will present the case based on facts and evidence in an affidavit for the magistrate or judge to decide the case.
IolProperty
Residential Yields Review
TPN-FNB - South Africa
Outlook
With regard to the direction of residential yields in 2015, much will depend on the movement of interest rates. In the near term, we expect further yield compression (decline). Although house price inflation is slowing, so too is rental inflation according to the TPN rental escalations measure as well as the StatsSA CPI for rentals, and it is a question of which will slow the fastest.
We believe, however, that the capital growth on letting houses could moderately exceed rental inflation in the near term, with interest rates not yet expected to rise, and home buying demand looking set to remain solid albeit not growing strongly any more. This could change late in 2015, when we expect to see CPI inflation rising as the disinflationary impact of the recent oil price fall diminishes, and interest rate hikes resume in the final quarter of the year. That could be expected to cool 1st time buyer demand, and strengthen rental demand, resulting in stronger rental inflation and slower house price growth, translating into rising yields from late this year.
Residential Yields Review
Agent Magazine February/March 2015
Estate Agency Affairs Board - South Africa
HEADLINES
RE/MAX leading the way for TRANSFORMATION OF THE REAL ESTATE SECTOR
THE ‘ONE LEARNER – ONE ESTATE AGENCY’ YOUTH BRIGADE EMPOWERMENT PROGRAMME
CONTINUING PROFESSIONAL DEVELOPMENT FOR ESTATE AGENTS
Home Owners Association and EAAB, NCC, CSOS, REBOSA, IEASA working on solutions
Agent Magazine February/March 2015
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