Housing prices have been coming down in real terms for much of 2011 and this negative growth trend is something that property analysts expect to continue for at least the rest of the year, probably longer.
With investment in residential property more likely to lose the average homeowner money in the near term, Moneyweb asks whether those consumers who have a choice should be opting to rent or to buy.
27 August 2011
Saturday Open Thread: "Prices to Decline" - MoneyWeb
Residential property prices to deteriorate
20 August 2011
13 August 2011
11 August 2011
Banks Downscaling Home Loan Departments
Banks brace for home loan sales staff retrenchments
Retrenchments are looming in the home loan departments of two of the four major banks, according to Business Report on Thursday.
Chief executive of First National Bank (FNB) Home Loans Jan Kleynhans confirmed that the bank was restructuring its sales department.
"At the moment we have just taken the first steps by advising [about] 90 people who may be affected. FNB Home Loans has nearly 1 000 employees.
06 August 2011
Saturday Open Thread: Double Dip Recession?
The markets got killed this week and S&P just downgraded the US bond rating.
Is the double dip recession here?
Is the double dip recession here?
05 August 2011
Rent Vs Buy - Mututal Heights: R1 500 rent on a R1.4m apartment. Crazy pills!
An anonymous user on this post sent us a link to this listing for a 2 bedroomed apartment in Mutual Heights on the market for R 1 395 000. Rates and levies are R2 520/month, transfer costs are approximately R50 000.And it's tenanted at R4 000/month. Till April 2012. Which means after expenses (but excluding maintenance) you'll be making R1 480/month. As the submitter said "I feel like I am taking crazy pills!". The difference between the rental and the bond is R11 000/month!! You're going to need a whopping 88% downpayment to have positive cashflow!
Do you even need to see the cashflow yield graph?
| Down Payment | Monthly Payment | Cash Flow | Annual Income | ROI | Cap. Appr. Required |
|---|---|---|---|---|---|
| R0 | R12551.18 | R-11071.18 | R-132854.13 | 9.52% | |
| R139500 | R11296.06 | R-9816.06 | R-117792.71 | -84.44% | 8.44% |
| R279000 | R10040.94 | R-8560.94 | R-102731.30 | -36.82% | 7.36% |
| R418500 | R8785.82 | R-7305.82 | R-87669.89 | -20.95% | 6.28% |
| R558000 | R7530.71 | R-6050.71 | R-72608.48 | -13.01% | 5.20% |
| R697500 | R6275.59 | R-4795.59 | R-57547.06 | -8.25% | 4.13% |
| R837000 | R5020.47 | R-3540.47 | R-42485.65 | -5.08% | 3.05% |
| R976500 | R3765.35 | R-2285.35 | R-27424.24 | -2.81% | 1.97% |
| R1116000 | R2510.24 | R-1030.24 | R-12362.83 | -1.11% | 0.89% |
| R1255500 | R1255.12 | R224.88 | R2698.59 | 0.21% | -0.19% |
| R1395000 | R-0.00 | R1480.00 | R17760.00 | 1.27% | -1.27% |
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