The South African Reserve Bank last raised interest rates in January 2014. Over the next 18 months, the market is now expecting a further 1.75 percent increase in interest rates from the South African Reserve Bank according to David Croser, executive for research and investments at PPS Investments. Croser said investors should look at diversifying their portfolios to stay ahead, and ensure they are able to build up capital, and not see it disappear. Read more in Protecting portfolios against rate hikes
Banks aren’t allowed to lock you into that 20 year loan term – it’s a maximum length, not a minimum, and there’s nothing to stop you paying off your loan faster in order to decrease the amount of interest you have to pay. According to Mike van Alphen, National Manager for Rawson Finance, there are a few ways to pay off your bond faster that won’t necessarily put a huge strain on your finances. Read more in Three easy ways to pay off your bond faster
In Focus On, we look at how Cape Town’s Southern Suburbs have capturing the attention and buying power of returning expatriates who are putting down roots and buying up homes.