Refinancing Your Property

Have you owned your own home for more than 3 years?
Are you aware that your home is worth much more than your original bond?
Have you considered unlocking that value to make it work for you?
Interested? Then read on...

The property market is going through boom times and this means that your home may have increased in value up to 30% or more in the last few years. That's a lot of capital you can easily access to put to much better use. Make your money work harder for you!

There are two ways to get to that vault of money...

sell your home and use the profit or

refinance your bond.

Sell your home and you may be liable for;

Capital Gains tax.

Estate agent commission (up to 7% of your selling price).

And you no longer have a home! You will either have to rent or buy a new home at today's prices.

Refinance your bond.

Refinancing is simply arranging a new bond for a larger amount - at a better rate - to release capital and improve your financial position.

Currently bond rates are at their lowest in many years. And they look like remaining there for some time to come. It may be possible to get a bond at 2% below prime! Is that not better than your current rate? Of course you can look to an additional bond with your bank for that equity in your home. But it may make sense to re-bond the entire amount.

For example; You have current bond of R500,000 with Bank A at Prime -1.3%.
You may arrange an additional bond with Bank A for the equity in your home of say, R300,000 at a better rate of Prime -1.8% on this amount. Great, but you are still paying Prime -1.3% on your original bond. Would it not be better to refinance R800,000 with Bank B at Prime -1.8% and settle Bank A bond? You decide!

Now you have access to the equity in your home - what should you do?

Do not spend it on any living expenses! That's a sure fire way to debt.
You want to invest it where it will give you a higher rate of return than the cost of the bond.
And that's not easy. Remember, this is a long-term strategy. Yes, returns from market-linked investments are currently good. But markets are volatile and can quickly decline. There are some investments that will give you the potential of longer term, higher returns. You just need to find them! And property is a great investment to consider.

Please note that refinancing is not without risk. Like all investments it has risks of it's own. Amongst others, you need to consider future interest rates, the hidden costs of refinancing and the type and risk of the investment into which you place your money.
There are ways and means to reduce these costs and you need professional advice before you refinance.

That's where I come into the picture!
I can assist you in obtaining the best rate for your bond.
I can assist you in investigating where to invest your money to maximise your return and minimise your risk.
I have access to powerful computer programs that use the many variables you need to consider when making a decision.

If refinancing interests you, please contact me and together we can investigate this powerful wealth-building tool.

Should you wish to investigate extending your bond, please complete the BOND ENQUIRY FORM and send it to me.

Don't leave your concern here. Call me for advice - no obligation!

Especially if you want to Refinance Your Property.

pyburn@peterpyburn.co.za