Don’t take up a bond. I know they tell you a house is an asset- true, it is but for the bank, not for you until you own it 20 years later.
#MoneyMistakesToAvoid
#MoneyMistakesToAvoid
Here’s a practical idea, this here is a 3 bedroom house for R865,000. The bond payment will be R8205 p/m at the best case scenario for 20 years. Which amounts to R1 969 200.00 (over double) 
There are initial transactional costs, at best case scenario will cost you R52,3331 (which you must pay cash) added to that R1 969 200.00 is R2 021 531.00 remember this is for a house that costs R865,00
But wait you can’t stay for free now can you? You still have to pay rates & taxes. For this area it’s R456 p/m over 20 years that’s R109 440.00 added to that R2 million that’s a total of R2 130,971.00
But wait again, this house is 62 YEARS OLD! 😱 it’s 2020 now and it already looks like a shack. 20 more years in your name it’s gonna be 82 years old & falling apart. You know what that means🤗 RENOVATE!
On average people spend about 50% of the initial property value in renovations over the duration of ownership so say over 20 years, you will spend about R432,500.00 on maintenance & renovations! Added on that R2.1 million.... you have about R2.5 million spend on the house approx.
But that’s not all 😰.... the bank won’t give you a bond without a life policy and insurance 😱 that could be an average of R500 together. For 20 years again, that’s R120 000.00 added to the R2,5 million that’s over R2,6 million. For a house that’s R865 000😪 biggest scam ever!
