Interest Rate Cut Boosts Property Investment at Kleinbaai Lifestyle Estate

Kleinbaai Lifestyle Estate invites everyone from first-time homebuyers to retirees to experience the vibrant community and serene living we offer.

The South African Reserve Bank’s monetary policy committee (MPC) just announced a 25 basis point interest rate cut, presenting an enhanced opportunity for property investors.

Imagine starting your journey with a home priced at R1,895,000 at Kleinbaai Lifestyle Estate. With a 20% down payment of R379,000, your mortgage amount stands at R1,516,000.

Thanks to the new interest rate of 11.50%, your monthly mortgage payments will decrease, presenting you with significant savings:

Monthly Payment Difference:

R16,429 – R16,167 = R262

Annual Savings:

R262 x 12 = R3,144

For a further detailed breakdown on your return on investment:

1. Determine the Mortgage Amount:

Let’s say you’re purchasing a home priced at R1,895,000 and making a 20% down payment:

Down Payment:

20% of R1,895,000 = R379,000

Mortgage Amount: 

R1,895,000 – R379,000 = R1,516,000

2. Estimate the Monthly Payment:

Monthly mortgage payments are influenced by the interest rate and the term of the loan. For this example, we’ll use a 20-year fixed-rate mortgage.

Before the Rate Cut:

Interest Rate: 11.75%

Loan Term: 20 years

With an interest rate of 11.75%, the monthly payment for a R1,516,000 mortgage over 20 years is approximately R16 429-00.

After the Rate Cut:

New Interest Rate: 11.50% (following a 0.25% rate cut)

With the new rate of 11.50%, the monthly payment for the same mortgage amount and term decreases to approximately R16 167-00.

3. Calculate the Difference:

Monthly Payment Difference: 

R16 429-00 – R16 167 = R262-00

Annual Savings: 

R262-00 x 12 = R3 144-00 p.a.

This reduction in your monthly payments is more than just a number; it’s a real opportunity to save on your mortgage and invest in your future at Kleinbaai Lifestyle Estate.

For more information, Kleinbaai Lifestyle Estate.

Property Developer: Devco Group

Bond originator: BetterBond

Sales: Greeff Christie’s International Real Estate - Whale Coast

Source: https://kleinbaaiestate.co.za/