Solid advice, I have been doing this for years on my investment properties and it is just like he said! To add my 2 cents, in addition to the above I pay my bonds weekly, renegotiate my interest every 2years, and pay my first Installment a day or 2 after the bond is registered.
So if you have a home and you are close to pay of the bond in full and you are planning to buy your next property.Is it wise to take a loan in your current bond and buy the new property cash or make a deposit to your second property?
Generally they give 30 year loans if you can't afford the 20 year repayment. However, if you can afford it you have the choice to get a 30 year bond. This does not affect the interest rate. On 1 property that I got a 20 year loan on I got an interest rate of prime plus 0.5 basis points. Whereas for a much more expensive property 3 years down the line we got a 30 year bond for 1 basis point below prime. It's all about credit score and affordability.
Solid advice, I have been doing this for years on my investment properties and it is just like he said! To add my 2 cents, in addition to the above I pay my bonds weekly, renegotiate my interest every 2years, and pay my first Installment a day or 2 after the bond is registered.
Hi, what's the reason for doing weekly payments? And do you negotiate the rate with your own bank?
Some knowledge I really wish I had 2 years ago 😩.
Thanks for the great content. 👌
Great advice, thank you very much 🙏🏾
Glad it was helpful!
So if you have a home and you are close to pay of the bond in full and you are planning to buy your next property.Is it wise to take a loan in your current bond and buy the new property cash or make a deposit to your second property?
Hi Rowan, do you offer mentorship?
❤
Don't they charge a higher interest rate for a 30 year loan?
Generally they give 30 year loans if you can't afford the 20 year repayment. However, if you can afford it you have the choice to get a 30 year bond. This does not affect the interest rate. On 1 property that I got a 20 year loan on I got an interest rate of prime plus 0.5 basis points. Whereas for a much more expensive property 3 years down the line we got a 30 year bond for 1 basis point below prime.
It's all about credit score and affordability.
😢…could’ve, would’ve and should’ve