How long will it take you to pay off your bond? Most South Africans take 25 to 30 years. As a result, the true cost of the bond increases dramatically thanks to the amount of interest you end up paying. According to FNB's product specialist Ester Osche, property investing certainly is a popular way for people to grow their wealth over the long-term. However, you need to manage your bond effectively in order to reap exceptional investment returns from your property.
You can reduce your loan term, interest and total loan repayment if you pay R1000 extra on your bond. This will make a massive difference to the loan term— Ester Osche, Product Specialist at FNB
According to Ester, these are the 5 steps to take to get the most out of your property investments.
Understand your affordability - Speak to your bank to find out exactly what you can afford to buy. Consider all the costs involved and save up a deposit.
Find a property that is below your maximum affordability - Doing this means you can pay a little extra every month to reduce your loan-term
Stop trying to impress others - Buying fancy cars, clothes and jewelry to impress friends can be detrimental. Use this money wisely and add it to your bond repayments instead
Create additional income streams - If your new property has a flat attached, rent it out. If you have a side business, use this income wisely and contribute extra to your bond repayments
Listen to the full audio with Ester Osche below