Real Estate Investor Magazine South Africa September 2014 | Page 35

RESIDENTIAL

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Tony Clarke
Managing Director
Rawson Property Group

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Dr Andrew Golding
CE
Pam Golding Property Group

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The recent rate hike means a homeowner with a R1.2 million home
loan at prime rate over 20 years was paying R10,797 and is now
paying R10,990 — an increase of R193. However, it is forecasted that
the interest rate will increase by a further 0.25% in Q4 2014 and by
1% in 2015. Homeowners with a 20-year loan at the prime interest
rate,who were paying R868 per R100,000 at the beginning of 2014,
would be then paying R998 per R100,000 at the end of 2015 - a
14.9% increase. This will affect homeowners and ten