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Online Share Trading

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deposit for house

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AJT
Super Contributor
are you sure it is an access bond - never heard of an access bond returning money, mine has always only charged me interest..
0 Kudos
AJT
Super Contributor
quite right and a lot less stress than building...
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Franksays
Frequent Contributor
Dont forget that you as a buyer have a lot of options available to you to save money on your purchase. First the selling price. Saash is right, it costs you around 30 percent more to build than to buy. If you have time and you dont need to move in straight away, you have leverage, you can use this as a concession to trade with your buyer for a lower price or an extra thing that comes with the place. Maybe you like the curtains? Sure you if you buy you pay transfer fees, but rather than trying to avoid them, negotiate them. The actual transfer tax is an unavoidable cost, but what the lawyers charge - now thats negotiable. Most will hate to admit it, but trust me an hour phonining around can cut this by a third. Rather than trying to gain 10 or more percent over a 12 month period, rather try saving this amount. Less hassle, less stress and if the market turns against you, your capital is intact. What sort of a return would you like, translate it to rands and then see how you can save this.
0 Kudos
Franksays
Frequent Contributor
Dont forget that you as a buyer have a lot of options available to you to save money on your purchase. First the selling price. Saash is right, it costs you around 30 percent more to build than to buy. If you have time and you dont need to move in straight away, you have leverage, you can use this as a concession to trade with your buyer for a lower price or an extra thing that comes with the place. Maybe you like the curtains? Sure you if you buy you pay transfer fees, but rather than trying to avoid them, negotiate them. The actual transfer tax is an unavoidable cost, but what the lawyers charge - now thats negotiable. Most will hate to admit it, but trust me an hour phoning around can cut this by a third. Rather than trying to gain 10 or more percent over a 12 month period, rather try saving this amount. Less hassle, less stress and if the market turns against you, your capital is intact. What sort of a return would you like, translate it to rands and then see how you can save this.
0 Kudos
olilau
Frequent Contributor
hey rossi, not sure if i read this correctly but it seems you already have a bond ? and its financed @ prime -1.5 which is 8% ? you will not get 8% return in any kind of bank account, and prob not in trading/investing without some (in my mind unacceptable) risk over the short term, especially since it seems that you are investing with negative gearing (ie using bond money to finance investment) ? rather take surplus money and sink it into your access bond, thereby getting 8% after tax. you will realise the capital you need when you sell whatever you have bonded.
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Rossi
Contributor
Hi there, I did think of that, the only thing is I was planning to keep the property and rent out... but maybe the smart thing to do is to pump in as much as possible! and then take profits get into the new property, put as much into that as possible and then hopefully make some good profits! AND SETTLE DOWN :)
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AJT
Super Contributor
keep the bond as large as possible on the property you want to rent out, you can get tax deductions...
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Alonzo7
Frequent Contributor
Agree - Allow the rental income to cover the Monthly Bond amount including rates & insurance. Remove all other funds from the Access Bond (provided this is a Rental Property) and pump the available funds into your Primary property (where you live in).
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Russ
Super Contributor
Rossi,you buying a first house for R15 million,or have you miscounted the noughts?
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THRESHOLD
Super Contributor
Don't buy a house. Patiently work the market (ie. invest) AND rent a bigger place. work the landlord over for a good deal.
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Not applicable
RENT.Do not buy.Place cash in NEWGOLD.Wait till prop.mkt drops( and it will...much more.) THEN buy a house, using your NEWGOLD winnings( have a 12-mth view).Safe.Sound.And a healthy deposit on your first Home.= wedded bliss....
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