Scribd Logo
Upload

Welcome to Scribd!

  • Bond Calculation Done

    Uploaded by

    agentsupport3397
    13 views10 pages
    This document provides information about calculating bonds for property purchases including: 1. It outlines the factors considered in assessing affordability such as earnings, expenses, and existing loans to determine monthly bond repayment amounts. 2. It compares the costs of renting versus owning a property over 20 years, finding that while renting costs more per month, owning results in an asset after 20 years while renting has nothing to show for the money spent. 3. It notes some hidden costs of property ownership beyond the purchase price like transfer fees, conveyancing fees, bond registration fees, and future expenses like rates, taxes, maintenance, and insurance that must be budgeted for.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides information about calculating bonds for property purchases including: 1. It outlines the factors considered in assessing affordability such as earnings, expenses, and existing loans to determine monthly bond repayment amounts. 2. It compares the costs of renting versus owning a property over 20 years, finding that while renting costs more per month, owning results in an asset after 20 years while renting has nothing to show for the money spent. 3. It notes some hidden costs of property ownership beyond the purchase price like transfer fees, conveyancing fees, bond registration fees, and future expenses like rates, taxes, maintenance, and insurance that must be budgeted for.

    Copyright:

    © All Rights Reserved
    Download as PPSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppsx, pdf, or txt
    13 views10 pages

    Bond Calculation Done

    Uploaded by

    agentsupport3397
    This document provides information about calculating bonds for property purchases including: 1. It outlines the factors considered in assessing affordability such as earnings, expenses, and existing loans to determine monthly bond repayment amounts. 2. It compares the costs of renting versus owning a property over 20 years, finding that while renting costs more per month, owning results in an asset after 20 years while renting has nothing to show for the money spent. 3. It notes some hidden costs of property ownership beyond the purchase price like transfer fees, conveyancing fees, bond registration fees, and future expenses like rates, taxes, maintenance, and insurance that must be budgeted for.

    Copyright:

    © All Rights Reserved
    Download as PPSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppsx, pdf, or txt
    of 10

    Bond Calculation

    Created By Mandy Da Matta

    You
    You

    Job
    Job Earnings
    Earnings

    10.5%
    10.5% +
    + R510
    R510 000
    000 Bond
    Bond
    Repayment
    20Years
    Repayment 20Years

    R17
    R17 000-p/m
    000-p/m 30%
    30% =
    = R5
    R5 100
    100
    Capital
    Amount

    CREDIT

    WORTHY

    AFFORDABILITY

    R100
    R100 000
    000

    1000
    1100

    10% Over 20 Years Bond

    Saving
    R260 000
    Interest
    Saving
    R140 000
    Interest

    Saving
    R64 000
    Interest

    Amount

    R100
    R100 000
    000

    R100
    R100 000
    000
    R1000
    R1000

    R101
    R101 000
    000

    1st
    1st

    February
    February
    Pay R1000
    R1000
    Pay
    Interest
    Interest

    R99
    R99 880
    880
    R98
    R98 780
    780
    R1
    100
    R1 100

    R990
    R990 000
    000
    R1
    000
    R1 000

    R99
    R99 980
    980
    R98
    R98 880
    880
    R1
    R1 100
    100

    R99
    R99 780
    780
    R98
    R98 680
    680
    R1
    R1 100.
    100.

    Interest
    Interest is
    is charged
    charged on
    on the
    the daily
    daily outstand
    outstand capital
    capital amount
    amount put
    put through
    through
    Monthly
    Monthly in
    in area.
    area.

    AFFORDABILITY
    R500 000

    20
    @
    10.5
    12.5%
    20 YEARS
    YEARS @
    10.5
    12.5%

    R4
    R5 680-P/M
    R4 990-P/M
    990-P/M
    R5
    680-P/M

    R400 000

    R500 000

    30
    30 YEARS
    YEARS @
    @

    10.5
    10.5
    R4
    R4 575-P/M
    575-P/M

    12.5%
    12.5%
    R5
    R5 535-P/M
    535-P/M

    R400 000

    30
    30 YEARS
    YEARS

    R3
    R3 992-P/M
    992-P/M

    R4
    R4 544-P/M
    544-P/M

    R3
    R3 992-P/M
    992-P/M

    R4
    R4 544-P/M
    544-P/M

    ABSA Affordability Gross Earnings R17 000


    + R 12 000
    (R4 000). Rent

    Bond

    R1 200. Food
    R500. Transport. (WALKING CURRENTLY)
    R500. Cell Phone.

    11 400

    4 Years R300-p/m

    R3 000 Insurance
    RA/life/funeral/forex.
    R400. Accounts Edgars - + R2 000
    R200. Electricity.
    Loans. No loans
    R500. Saving A/C
    Money Pocket.
    10 1000.
    R1 700.
    Surplus

    3 000
    Guaranteed R

    14 400

    Budget

    To Rent

    Bond

    Levy

    + R4 000

    + R1 000

    Rates &
    Taxes
    + R300

    Electricity

    Over 3 Years

    + R 300

    + R6 100

    12 x R4 000

    12 x R4 400

    12 x R4 4000

    =R48 000

    =R52 800

    =R57 600

    Cost Real
    =R158 400

    Nothing to show for this money after


    3 Years of Renting

    Budget

    To Own

    P/P R440 000

    R484 000
    R 48 000

    Of it.

    R132 400.

    R535 400
    ASSET

    1. R60 000

    R44 000

    2.
    3.

    R60 000

    R60 000

    R180 000
    -R132 400
    R48 000. Real

    Wealth Creation

    Property Doubles in
    Value every 5 Years.
    5 Years R1 Million
    10 Years R2 Million
    15 Years R4 Million
    20 Years R8 Million

    Hidden Costs
    R500 000 p/p
    Upfront Costs
    Transfer Fees
    =3
    R14 500

    Conveyancing
    Conveyancing
    Fee
    Fee (Buyer)
    (Buyer)

    Transfer
    Transfer Duty
    Duty
    (Tax)
    (Tax)

    C
    0

    TD
    R12 000

    B
    R26 500.

    Bond
    Bond
    Registration
    Registration
    fee
    fee

    TD

    Hidden Costs
    R400 000 p/p
    Upfront Costs
    Transfer Fees = 3
    R12 500 C
    0 TD
    R10 000 B
    R22 500.
    CASH

    Conveyancing
    Conveyancing
    Fee
    Fee (Buyer)
    (Buyer)

    Bond
    Bond
    Registration
    Registration
    fee
    fee

    Transfer
    Transfer Duty
    Duty
    (Tax)
    (Tax)

    TD

    Hidden Costs
    B

    Bank
    B Bond

    Lan
    d

    TD Title Deed

    ERF
    ERF No
    No 101
    101

    You
    You get
    get to
    to maintain
    maintain this
    this
    Insurance
    Insurance

    Sewerage
    Sewerage Water
    Water Roads
    Roads

    Taxes

    Rules
    Rules

    Rates

    Taxes
    Taxes

    Rates
    Rates

    Hidden Costs
    Exclusive use of
    a section of the
    building and an
    undivided share
    in the Common
    Property

    Rules

    Common
    Common Property
    Property
    Maintenance
    Maintenance
    Insurance
    Insurance

    Body
    Body Corporate
    Corporate

    You might also like