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Why Settle For a Rented Home?

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In the last 50 years of its existence, South Africa has seen tremendous changes in the way its cities have developed and the activities in real estate have shaped up. Although the city was always a hot bed of engineering activity, several other IT and ITES and a lot of R&D work that has considerably stepped up the real estate development within the city. It is not just the expanding limits and new roads that take visitors by surprise, but a whole lot of new complexes with world class amenities and good neighbourhoods that have come up recently. There is a spurt in all three segments – residential, commercial and retail.The fact that banks have stepped in to tie up with firms, lend credibility to the projects. Developers themselves have become more pro-active in enhancing their image in the industry and are competing with one another to offer better products. In the years to come the projects would be more oriented to the buyer as there would be more supply of homes at affordable rates. They are now ambitious about living in a good community, where there are state of the art shopping complexes, health facilities and health care centre. Home loans being available easily and they don’t need to wait till their retirement to buy homes.Once you decide to avail particular home loans, the next thing that storms your brain is choosing between fixed and floating rate of interest. And here is where you are caught in a catch 22 situation. Applying for home loans has become easier. Enticing advertisements and easy installment plans may be tempting you to avail a loan every now and then. Shifting from home loan rate to fixed is not really advisable as there are not many banks that offer genuine fixed rate loans anyways. If you’re applying for a loan for the first time is would be quite a straight forward deal.Those who thought themselves to have sailed safely by buying floating rate loan at 7% in 2003 are now highly tensed. Most banks are charging around 11.50% interest rate. Your home loans tenure should not be a driving factor for you to narrow down on the option of prepaying the loan. It should largely depend on current interest rate and the amount of spare cash with you. Interest component falls down and principal component goes up as a proportion of the EMI with the loan tenure. For that reason, many of mortgage loan borrowers assume not to prepay an apt way, say, after half way through the loan tenure, because the interest falls.Nowadays, almost every bank is offering a home loans with the repayment period of maximum 20 years. Apart from the tenure, the only thing which is left to consider is rate of interest. For that reason, you should never rush to buy a home loans. Always carry out a research and study the market meticulously to make the best use of what many banks and housing finance companies are willing to lend. Repay all the other pending outstanding loans like car loans or personal loans. It adds to your ability to repay and the lending institution takes greater interest in giving you best Home Loans


Written by davisjeffery24

August 10, 2013 at 8:59 pm

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