INTEREST RATES
This same rule applies to home loan deposits invested in an interestbearing account . While deposits on home loans remained low priority for many during the COVID-19 pandemic , the latest statistics from ooba Group ’ s Q3 ’ 22 oobarometer indicate that an increasing number of South Africans are recognising that they can use deposits and earned interest to
“ Every rand counts in this challenging economy and that the higher the deposit amount , the higher the potential earnings .” their advantage , with the yearon-year growth of the average deposit size ( as a percentage of the purchase price ) up a whopping 18.2 %.
How much interest will your deposit earn ?
In an effort to illustrate the beneficial impact of interest rate hikes for homeowners who have put down a deposit , let ’ s compare the possible interest accrued of various deposit amounts against the current interest rate ( 9.75 %) and the interest rate of November 2021 ( 7.25 %).
The Q3 22 ’ oobarometer revealed that the average national purchase price of a home is R1 402 408 and that the average deposit is R127 567 ( constituting 9.1 % of the purchase price ) so these figures will be used as a starting point to give a realistic representation of the possible earnings of homeowners who choose to put down a deposit .
86 DECEMBER 2022 / JANUARY 2023 SA Real Estate Investor Magazine