South African consumers are urged to save money for home deposits if renting or use extra cash towards mortgage repayments.
If you are renting, start saving for a deposit on a home of your own so that you can get the long-term benefits of the current low prices and low interest rates.
According to Berry Everitt, managing director of Chas Everitt International Property Group, it is good news that household debt levels continue to fall but consumers can’t afford to be complacent.
Everitt says households in South Africa should keep looking for more ways to save and prepare for increases in the costs of transport, food, water and electricity and against future interest rate increases.
He says this is not the time to buy a new car or go travelling if your home is in need of repairs or renovations that have been neglected during tough times.
“Take the cash that is ‘free’ now that your debts have been repaid and do something really constructive with it.”
If you are renting, start saving for a deposit on a home of your own so that you can get the long-term benefits of the current low prices and low interest rates.
If you already own a home, use the extra cash to reduce the capital amount of your home loan, cut the repayment term and generate huge savings in interest.
He adds that consumers should continue to seek ways to cut costs, barter goods and services and earn additional income in a very determined effort to further improve their financial position in the coming year. – Denise Mhlanga
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