Thanks for the video. But I feel you should pay off your bond as soon as possible. Thereafter you can invest properly. It doesn't make sense investing extra money while you pay a bank interest. Once your house is paid off you can also rent out the outbuildings and receive additional cash from your property. All debt should be paid off, then you'll have so much of cash flow
Worth considering but the problem here is investment returns are not guaranteed whereas your bond installment and interest is a given. Definitely worth a thought though.
Great contribution. However, the biggest challenge for most people is lack of financial education and using emotions to buy or invest. However, buying property and paying a bit more than the minimum bond repayment can be said to be accidental investment. You benefit from (i). Debt paid down; (ii), Interest saved; and (iii). Increase in your equity on the property due to property value appreciation. The most important thing is not to pay only minimum payment on your bond repayment but always pay a little bit extra. You could end up having hundreds of thousands in equity which you can use to upgrade your lifestyle, take kind to varsity or invest in assets such as property.
Congratulations on ur pregnancy!!! And thanks a lot for your advice, I'm in a bad financial position right now but I am hoping to change it along this year! I am becoming 30 so it's about time!! Thanks for sharing Mapalo!
You do both of you have R2000 extra a month to invest, pay R500 to the bond as extra payment and invest R1500 every month. Then use 50% of the profit from your investment to pay extra to the bond and 50% for investing. Don't forget to have tax free savings and RA to reduce your tax.
Thanks for this. A question I always battle with. I always find myself switching between the two. It seems so great to be debt free but as you showed the numbers does not lie.
The question is, do you solve for guaranteed debt vs non-guaranteed investment returns. Also when paying off your debt, your capital secure and accessible whereas in investments your capital is at risk and not that easily accessible. My suggestion is to rent the property you consume and use the savings to invest in diversified assets such as property itself and stand a chance to earn passive income by using good debt and paying that off for additional income.
Congratulations on the pregnancy, I've been noticing the gains...now I see why😋 Please suggest the equities I can invest in with good returns, to grow my wealth
The comparison is a bit flawed. If I save 200 000 by putting 1k extra on my bond and paying my bond in 15 yrs. I can invest the money I would have used for the hl. Inveating is still the vetter option, vut tge difference is not as big as the scenario given
Defeats the purposed of the video becos your doing both, investing and paying off bond. Also u don't take into account variable prime interest, market volatility and savings interest change into account
