Despite the expected rate hike, it is still a great time to become a homeowner.
This is according to Samuel Seeff, chairman of the Seeff Property Group, who says that homeowners and buyers will need to adjust to higher home loan repayments and further cost hikes, including increased food and fuel prices.
Middle-class homeowners and prospective property buyers can expect an extra R600 to R1 200 per month on mortgages of between R750 000 and R1.5 million, depending on the rate and repayment period.
Seeff says buyers could also look to purchase below their budget to create a financial buffer. Instead of buying for R750 000 (with a full bond) at a cost of about R6 400 a month, you could opt for R690 000 at around R5 900 a month, resulting in a saving of about R500 a month.
READ: Frequently forgotten additional costs of homeownership in SA
Instead of buying for R1.5 million at repayment of about R12 800 a month, you could opt for R1.35 million at around R11 500 a month and create a buffer in your budget of around R1 200 per month.
If you have additional debt such as a credit card and car loan, you will need to take that into account on top of needing an extra budget for the higher food, fuel, and other household expenses.
Start by relooking your monthly expenses. Draw up a schedule of all income and expenses. Add a column with the potential additional costs that you need to budget for. Then, start looking at where you can cut and save.
Basic lifestyle and habit changes could save you anything between R500 and R2 000 per month depending on your household. Doing your own cleaning and gardening is not just a great workout, but can save R350 to R3 000 per month for a basic household.
See which home loan you qualify for
Are you looking to settle down? Here are affordable homes starting at R488 550 in Joburg, Midrand, and Pretoria.
1. Convenient living in Midrand for R488 550
In a secure estate in Riverside Views, this modern apartment offers two bedrooms, one bathroom, access to the kids' play area and is within a walking distance of amenities.
Click here to view.
2. Delightful living in Blue Downs for R599 000
This townhouse in Sunset Glen offers modern low-maintenance living. The home has two bedrooms, one bathroom and is within a walking distance of the shopping centre.
Click here to view.
3. Trendy living in Joburg for R679 000
Set 15 minutes from the Trade Route Mall, this home in Lehae is close to schools and many amenities. The home has two bedrooms, one bathroom and a private garden.
Click here to view.
4. Living in style and modernity in Pretoria for R765 000
This apartment in La Montagne is the epitome of a perfect starter home. It has two bedrooms, one bathroom, a clubhouse with braai facilities, and a private garden.
Click here to view.
5. A charmed life in Johannesburg for R850 000
In Rembrandt Park, this contemporary apartment offers buyers and investors convenience and peace of mind. The unit has two bedrooms, one bathroom, a patio, and a small private garden.
Click here to view.
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