It has been a rolercoaster ride for the world in the last couple of months with the jolt of the epic Corona virus pandemic which emanated from China in 2019.
For a change, South Africans are not talking about emmigrating! Glass half full we say, because we live in such a beautiful country!
With these extenuating circumstances we find ourselves in, Government, financial institutions and private funders have given us a “break” in many forms, which we can all be grateful for.
The Repo rate was cut twice which meant that the bond rate went down by 2%. That was an unprecedented move by Government to assist homeowners in this crisis. This amounts to massive savings on bond repayments, the likes of which South Africa hasn’t seen in decades (see our Facebook page for estimates on savings).
Financial institutions have given payment holidays on bond repayments (T’s and C’s apply as usual), however that is certainly a gift especially where you could possibly face a problematic or stranded tenant without income which you might have to evict.
Pivate funders have come to the aid of fellow South African businesses, by offering loans to Small to Medium and Micro Enterprises. Although the demand has far exeeded the offered funding, there’s hope that many businesses might benefit in some small way.
How does this affect you as a homeowner? Lets talk about it…
- You might have a payment holiday of 3 months for your bond repayments – don’t squander the money.
- Consider your circumstances and make a decision on either your tenant if problematic, or your lifestyle.
- Consider downscaling and renting your property out, or selling your home and renting a cheaper home than your bond instalments would have been.
- The estimated job losses by the Reserve Bank before the extended lockdown were approximately 370 000, with this now possibily being as high as 1 000 000 with the extended lockdown to the end of the month. Decisive action is needed and consider communal homes with multiple families to ease the rental burden.
- Don’t wait until it’s too late.