That's what we did in 2010 my husband and I were approved for R25000 monthly bond payment or R2.5Mill home bond combined. We chose to buy a R350 000.00 house, and we fully paid it in a year and a half, we renovated it and sold it for R1,380,000.00 💃💃💃💃 we then proceeded bought 2 plots, built on them and sold the houses for +R6,000,000 combined. Today we live a bond free life with 2 other houses and few apartments that we are renting out. I'm 30 and my husband is 35 and we are very much happy with the choices we made then. This is how you win in life and be silent about your achievements.
@@FinancialBunny i wish that more black people knew this instead of wanting to buy a small expensive house in suburbs where they can't even breathe because of it's costs. Start small in the township (if that's where you are rooted), create financial freedom by small investments then buy big ONLY WHEN YOU CAN AFFORD TO DO SO. Being business driven and having the gift of being able to do things for myself, I rented a chair in a Salon at the age of 18, registered my business, opened 3 separate savings accounts to control my spending, got bond approved at 21 with no credit in my life is beyond me. In highschool I was already paying for my fees because of doing people's hair after school, weekends and holidays and I managed to pass and I'm doing my BCom Honours
I looooooooove your financial advice and i don't know if its just me, but the fact that I'm watching a black female South African makes it that much more impactful. Thank you
You're telling the true. Sometimes people make emotional decisions with money and they ends up being a bad position. Patience is key, and accepting that you cannot afford something right at that moment. So it's better to buy what you can afford, grow that and after something buy your dream home.
Hi. Thanks, i appreciate the advice. I however believe you are out of topic. The clip is titled how to beat the home loan system, then the advice is focused on the before home loan considerations...
Hi Nicholatte , let me say I earn less than R8000 and the house i want to buy is has room to rent that can make up to R20,000 or more do I qualify for the home loan because the house is probably going to cost around 1 million or more , do for that home loan or not ?
That's exactly what we did, the bank wanted R8000 for 20 yrs per month and we paid R7000 more that's a total of R15000. We managed to fully settle the loan in 9 yrs , that's a saving of +R700 000, which we could have paid in interest.
I will teach you how you can earn $2000 weekly all directly To your means of cashout with a legit and a guaranteed Account Managers Giving out info to first 20 serious persons that comment “how” FOREXTRADING investment has been placed as the most profitable investment package all through the internet trading platform testimony of success are brought out daily weekly and monthly. Making a good amount of money within a short time mining is one of the most profitable online business alot of people have made enough money from it you too can Despite the risk involve in BO/FX mining, it is very much possible to make it big in FOREXTRADING FOREX INVESTMENT & MINING!!! WhatsApp 👇👇👇 +1(409)203_7273
Thank you for taking your time to make videos that educate south African people. Being 22 I do not have much knowledge on this subject , so watching these videos have really made me aware of the extensive amount of factors to consider and in turn made me wiser .
I am very proud of you !! We just came out of a technical recession and the most black youth is clueless of it is. Consequently we get ourselves in debt traps while we are loosing jobs. But thank God you are here and tables will slowly turn around. Eyes r opening...
It's zero taxed, legally. That's the nicest part of it. You save a lot on interests, and you can even use that money if you want to, as long as you have not cancelled your bond. Banks don't like it, but there is nothing they can do about it by law.
Another thing on top of this, if you want to play with the system, you can just refinance over a short period for things like a car, another bond etc, at the most lowest interests. Few people use this because they don't know how it works. It's super cool.
@@bonganiskosana5114 good morning...if I am paying extra and I have access bond facility... I can use the money in the access bond and not be charged extra... If the bond is 4k and I pay 8k.. Nd I would finish paying in 10 years becouse I pay double it doesn't get affected if i use some of the money I have payed extra?
Do you need a quick loan, loan to start up a bussiness or pay off your bills get back to us for more information via whatssap here is the number +2347068767768
You are quite helpful but I don't agree with you with the part that says a loan over a long period is a Future Value. Future value is something different
Well the top comment here was more useful in a single sentence than this entire video. This whole video could be summarised as: BUY CHEAPER THAN YOU CAN AFFORD NOW AND PAY IT OFF BEFORE THE ALLOTTED TIME.
The science is the same, one can decide to pay higher installment with a view that they can increase their earnings every year (which is true with most people) # Rich people save or buy big for better returns. The choice is yours as long as you set your priorities right.....
@@dudettethechicklet2828 higher price tag in high valuated market e.g. buy a 1 bedroom in Rosebank is different from buying the same room in kempton park. In short, go big if you have the appropriate plan.
New Banking law says that banks are allowed to penalize you if you try to reduce your contract years by paying additional installments because the bank has signed a contract with you on the Future value of that loan, now it would be loosing out on the interest it would of earned and you would be in breach of contract so they have now inserted a clause stating that banks can charge you a penalty if you pay up your loan in advance.
@@FinancialBunny Thanks for this useful tip, so one would necessarily pay off the bulk of the loan and lets say for arguement sake on a 20 year bond worth 800000 principal debt, pay off 799999 and be left with the interest of R1 growing at lets say 10.5% pm until 20 years have elapsed?
Not necessarily Thomas. If you give the bank 90 days notice that you will be paying off the loan then there is no penalty fee. You can also pay off the loan and only owe R1000 for the remaining months of the 20yrs. This becomes an access bond that you can use to pay for other things with the same interest rate.
correction. Bank can only penalyz you if you settle more than 250k bfo time..but if less they can't. also only allowed to penalyze u max 3 months of interest
Thank you so much for this information. Is it possible to pay off a car loan like this . So I can use the instalment money and use it towards the home loan
Good girl my boy...been saying that for sometime to everyone I know who will listen. I am giving my daughter her inheritance at age 13 because the house will be finished.
@@faithmabale6051 Its called opportunity cost, when you make additional payments you locking up cash that you could lets say have used to buy shares, bonds, etc. These assets will bring additional income which will offset the interest rate paid while at the same time giving you an income. You increase your asset base, which is a positive for for your credit score and plus you diversify your portfolio. Locking money in an illiquid asset like a house is not always a great idea, houses are not good storers of value. One mustnt forget that a house is like an other asset and its prone to market forces and when you lock so much value in your house you stand to lose aloy when the matket turns. I hope u understand, typed this in a rush! Forgive errors
@@williamchabalala7373 .this is an interesting view.. but what if you want to close it off earlier? I mean that is usually the main reason why one would want to add more into the chunk of this debt
@@zimumuhlemachika4184 you can still do that by liquidating your assets and taking the proceeds to pay off the house.. The only difference is that you are not looking money into one asset and also yoi are creating another income channel which u can potentially leverage to create more wealth... If you decide to layoff the house, all you do is liquidate your position and pay of the house!.
So you would advice that one splits the extra amount in two..say maybe I pay a R1000 extra.. take the R500 and buy shares then take R500 pay into the home loan?
That is a great advise and it makes so much sense but here is the thing the houses on the market are way too expensive a decent house is at least 800k of which in this situation you cant apply the method of buying a house that is 5k less than you approved for because those houses don't exist in the market
I know right 😂😂😂 , this is a lot more applicable when you are in an executive job position because you qualify for 20k instalment per month, so if you lower, you’re paying 15k
I think to beat the system you don’t have to buy a 500000rands house when you could instead buy a 1 mill rand house, here is my logic (I stand to be corrected) Point 1: for most black people we pay black tax with our disposable income, meaning even if you buy a cheap house you’re still not saving or investing Point 2: most cheap houses are in ‘not so great locations’ , for example, in middle density suburbs people can come build shacks very close to your homes hence depreciating the value of your property Point 3: most cheap houses have less space so you have little or no room to extend your house, meaning you can’t increase its value spontaneously So after 20 years you’ve paid a house worth 500000 , you still don’t have savings 😏
That's what we did in 2010 my husband and I were approved for R25000 monthly bond payment or R2.5Mill home bond combined. We chose to buy a R350 000.00 house, and we fully paid it in a year and a half, we renovated it and sold it for R1,380,000.00 💃💃💃💃 we then proceeded bought 2 plots, built on them and sold the houses for +R6,000,000 combined. Today we live a bond free life with 2 other houses and few apartments that we are renting out. I'm 30 and my husband is 35 and we are very much happy with the choices we made then. This is how you win in life and be silent about your achievements.
Wow
Yoh yoh yoh, TEACH US. Amazing truly. You had a plan, implemented and it delivered
@@FinancialBunny i wish that more black people knew this instead of wanting to buy a small expensive house in suburbs where they can't even breathe because of it's costs. Start small in the township (if that's where you are rooted), create financial freedom by small investments then buy big ONLY WHEN YOU CAN AFFORD TO DO SO.
Being business driven and having the gift of being able to do things for myself, I rented a chair in a Salon at the age of 18, registered my business, opened 3 separate savings accounts to control my spending, got bond approved at 21 with no credit in my life is beyond me. In highschool I was already paying for my fees because of doing people's hair after school, weekends and holidays and I managed to pass and I'm doing my BCom Honours
Lol 😂😂 lie
Does this person know CGT? Anyway, stop lying to us. you sold two houses in the hood for R6mil plus? pssssh.
I looooooooove your financial advice and i don't know if its just me, but the fact that I'm watching a black female South African makes it that much more impactful. Thank you
Lol
Why is everything about race & gender yeeerr ?
I've heard you should also not just take the first "quote" (lack of better word) but compare with different banks and negotiate interest rate.
You're telling the true. Sometimes people make emotional decisions with money and they ends up being a bad position. Patience is key, and accepting that you cannot afford something right at that moment. So it's better to buy what you can afford, grow that and after something buy your dream home.
I'm binging on your videos...I really wish I could have came across your channel earlier
The wonderful woman helped me with financial literacy. Thank you Miss😁
I wish i had this information before i bought. i bought the maximum house i could afford.
Hi I love your videos they are an eye opener thanks mo afrika
I don't always immediately subscribe , but your content is that good👌🏼💯
"I am also on TH-cam apparently "... Great beginnings ...same wise advise😂
So thankful that I found this channel
You're a sweetheart. That's exactly what I needed to hear. Thank you so much sis Nicolette for this information. Much appreciated.
Hi. Thanks, i appreciate the advice. I however believe you are out of topic. The clip is titled how to beat the home loan system, then the advice is focused on the before home loan considerations...
I agree.
Great tips , Nicolette Mashile
Regards
Gaven Malope
I'm really loving this as I'm starting to build up for a property
Do you have to have collateral when taking out a home loan for the first time ? ( who’s a high earner )
I wonder is the assets for who?
Thank you girl. Very informative
Does it have to be a home loan? Or can it be a personal loan ?
Does saving up a huge amount of money to pay as deposit for either a car or a house actually decrease the installment or bond?
With a car every 10000 you put as deposit decreases the installment by 100
Wow!! That’s so little 🤦🏽♀️
Thank you
Anne Day thank you so so much. Please keep up with your work here. You’re truly very helpful to me and a lot of people out there
Thank u luv😘keep up the good work I've gained a lot from you,GOD bless you 🙏
Hi Nicholatte , let me say I earn less than R8000 and the house i want to buy is has room to rent that can make up to R20,000 or more do I qualify for the home loan because the house is probably going to cost around 1 million or more , do for that home loan or not ?
Great video :)
Love u bby. ...
You are beautiful but know very little how the system works
And after 5 years your video saved a life from making a terrible mistake. Thank you.
That's exactly what we did, the bank wanted R8000 for 20 yrs per month and we paid R7000 more that's a total of R15000. We managed to fully settle the loan in 9 yrs , that's a saving of +R700 000, which we could have paid in interest.
Look at all that interest saved. That’s an investment apartment
Well done!!! 👏👏👏👏👏
I like that idea and i'm sure it takes a huge discipline and sacrifice .
Nthabiseng Mokwene well done. You beat the system ✊🏾
I will teach you how you can earn $2000 weekly all directly To your means of cashout with a legit and a guaranteed Account Managers
Giving out info to first 20 serious persons that comment “how”
FOREXTRADING investment has been placed as the most profitable investment package all through the internet trading platform testimony of success are brought out daily weekly and monthly. Making a good amount of money within a short time mining is one of the most profitable online business alot of people have made enough money from it you too can Despite the risk involve in BO/FX mining, it is very much possible to make it big in FOREXTRADING
FOREX INVESTMENT & MINING!!!
WhatsApp 👇👇👇
+1(409)203_7273
Beating the amortisation schedule... pay higher instalments, paying less interest over shorter time.
100% correc
Moral of the story, live and spend below your means.Liquidity is king...Great advice!
Thank you for taking your time to make videos that educate south African people. Being 22 I do not have much knowledge on this subject , so watching these videos have really made me aware of the extensive amount of factors to consider and in turn made me wiser .
I am very proud of you !! We just came out of a technical recession and the most black youth is clueless of it is. Consequently we get ourselves in debt traps while we are loosing jobs. But thank God you are here and tables will slowly turn around. Eyes r opening...
Insightful as always. Thank you... Just a quick question: how does paying extra to your instalments affect ones tax?
It's zero taxed, legally. That's the nicest part of it. You save a lot on interests, and you can even use that money if you want to, as long as you have not cancelled your bond. Banks don't like it, but there is nothing they can do about it by law.
Another thing on top of this, if you want to play with the system, you can just refinance over a short period for things like a car, another bond etc, at the most lowest interests. Few people use this because they don't know how it works. It's super cool.
@@bonganiskosana5114 thank you sir... I'll explore those options...
@@bonganiskosana5114 good morning...if I am paying extra and I have access bond facility... I can use the money in the access bond and not be charged extra... If the bond is 4k and I pay 8k.. Nd I would finish paying in 10 years becouse I pay double it doesn't get affected if i use some of the money I have payed extra?
My house Bond is R6800.... I am now in a position to pay 15000 per month. The balance is R600k. How long will it tae to pay off my house?
Check Property24 website...look for Mortage Bond Calculator.
I just need 5min with you. It'll change my life
Do you need a quick loan, loan to start up a bussiness or pay off your bills get back to us for more information via whatssap here is the number +2347068767768
Great advice, Proudly South African
Find out more about the ''Snowball effect''
R9,000 per month. SOO how I must be allright wwith it.
Thank you so much. I thought its ridiculous what they said I can afford and certainly brought the amount wayyyyyyy lower!
very informative and quality sound
I want to invest in SA real estate. HELP!!!!
You are quite helpful but I don't agree with you with the part that says a loan over a long period is a Future Value. Future value is something different
Sihle Socishe ok, agreed
Well the top comment here was more useful in a single sentence than this entire video.
This whole video could be summarised as:
BUY CHEAPER THAN YOU CAN AFFORD NOW AND PAY IT OFF BEFORE THE ALLOTTED TIME.
Thank you girl friend ❤❤
Which is best: to buy a repossessed house or none repossessed?
The main issue here is your affordability...
do not try to
I disagree on the low interest comparisons. We need to compare likes to likes.
Thank you sisi may God bless you.i really appreciate your advice
The science is the same, one can decide to pay higher installment with a view that they can increase their earnings every year (which is true with most people) # Rich people save or buy big for better returns. The choice is yours as long as you set your priorities right.....
Please elaborate by rich people buy for better returns
@@dudettethechicklet2828 higher price tag in high valuated market e.g. buy a 1 bedroom in Rosebank is different from buying the same room in kempton park. In short, go big if you have the appropriate plan.
Switched on woman.
Wow Girl!!! So true
Thank you,This made so much sense...Ey ngoba siyawahlomekela amabank yeeeer 🤦♂️
hey ses i want to open a lending /loan shark company i dont know where to start
Eish
Great video.... Have you purchased a home yourself?
She does own one
not just a home but properties...
She has got a lot of properties
She has lots of properties
Is there such a thing as mortgage refinance in South africa??
She was so cute in this video serving us with facts love her strong personality
New Banking law says that banks are allowed to penalize you if you try to reduce your contract years by paying additional installments because the bank has signed a contract with you on the Future value of that loan, now it would be loosing out on the interest it would of earned and you would be in breach of contract so they have now inserted a clause stating that banks can charge you a penalty if you pay up your loan in advance.
thomas Rammutla you don’t need to close off the account that’s the trick
@@FinancialBunny Thanks for this useful tip, so one would necessarily pay off the bulk of the loan and lets say for arguement sake on a 20 year bond worth 800000 principal debt, pay off 799999 and be left with the interest of R1 growing at lets say 10.5% pm until 20 years have elapsed?
Not necessarily Thomas. If you give the bank 90 days notice that you will be paying off the loan then there is no penalty fee. You can also pay off the loan and only owe R1000 for the remaining months of the 20yrs. This becomes an access bond that you can use to pay for other things with the same interest rate.
If you give them notice they can't penalise you, penalty comes when you need to immediately settle and close the account.
correction.
Bank can only penalyz you if you settle more than 250k bfo time..but if less they can't. also only allowed to penalyze u max 3 months of interest
You are really awesome! I am learning so much!
What to do if I am declined to get a home loan though I can afford monthly installments?
Thank you so much for this information.
Is it possible to pay off a car loan like this . So I can use the instalment money and use it towards the home loan
Wish I knew this before before...Lol we live and learn.
hey this is educative do you mind doing a video on land investments.
Abantu abamnyama neaingisi ai madoda
Wow, you are incredible. Thanks for the tips ❤️
A very wise decision,thank you
Love this girl, marry me please :-)
Thank you 😘😘
Great that you mentioned credit ratings, most of us don't know how to build credit, so if you could go about on how to build credit.
Great content!!
I don't agree with you
Email me at mishqaachmat20@gmail.com I will show you how to get your credit rating to 750
Thanks Nicollete, keep up the goood work
boo boo you making a lot of cents(sense) 😘😘😘😘
Good girl my boy...been saying that for sometime to everyone I know who will listen.
I am giving my daughter her inheritance at age 13 because the house will be finished.
I looooove you Nicollet. This is really helpful
Хеллов
wise words
I don't understand a thing u said
Tshepo Shibane You are dumb
Preach!
Does saving up a huge amount of money to pay as deposit for either a car or a house actually decrease the installment or bond?
For a house yes, a car maybe not
Don't make additional payments on your loan!
Why not?
@@faithmabale6051 Its called opportunity cost, when you make additional payments you locking up cash that you could lets say have used to buy shares, bonds, etc. These assets will bring additional income which will offset the interest rate paid while at the same time giving you an income. You increase your asset base, which is a positive for for your credit score and plus you diversify your portfolio. Locking money in an illiquid asset like a house is not always a great idea, houses are not good storers of value. One mustnt forget that a house is like an other asset and its prone to market forces and when you lock so much value in your house you stand to lose aloy when the matket turns. I hope u understand, typed this in a rush! Forgive errors
@@williamchabalala7373 .this is an interesting view.. but what if you want to close it off earlier? I mean that is usually the main reason why one would want to add more into the chunk of this debt
@@zimumuhlemachika4184 you can still do that by liquidating your assets and taking the proceeds to pay off the house.. The only difference is that you are not looking money into one asset and also yoi are creating another income channel which u can potentially leverage to create more wealth... If you decide to layoff the house, all you do is liquidate your position and pay of the house!.
So you would advice that one splits the extra amount in two..say maybe I pay a R1000 extra.. take the R500 and buy shares then take R500 pay into the home loan?
Girl I love the way ur hair looks on this video. U look great....
Great Vid.
Great advise, young people please use it
That is a great advise and it makes so much sense but here is the thing the houses on the market are way too expensive a decent house is at least 800k of which in this situation you cant apply the method of buying a house that is 5k less than you approved for because those houses don't exist in the market
I know right 😂😂😂 , this is a lot more applicable when you are in an executive job position because you qualify for 20k instalment per month, so if you lower, you’re paying 15k
Does saving up a huge amount of money to pay as deposit for either a car or a house actually decrease the installment or bond?
Yes it does Andy
A huge deposit for a home loan increases your chances of getting favourable interest rates and for being approved in general
Love the content...financial bunny...thank you
Thank you ❤
I think to beat the system you don’t have to buy a 500000rands house when you could instead buy a 1 mill rand house, here is my logic (I stand to be corrected)
Point 1: for most black people we pay black tax with our disposable income, meaning even if you buy a cheap house you’re still not saving or investing
Point 2: most cheap houses are in ‘not so great locations’ , for example, in middle density suburbs people can come build shacks very close to your homes hence depreciating the value of your property
Point 3: most cheap houses have less space so you have little or no room to extend your house, meaning you can’t increase its value spontaneously
So after 20 years you’ve paid a house worth 500000 , you still don’t have savings 😏