- Equity– Interested buyers would require a minimum of 10% to 20% equity. It can come in the form of cash saving or superannuation housing advance funds.
- Must have an ability to repay or have an active cash flow- Interested buyer must be employed or the buyer can be a engaged in Small to Medium Enterprise (SME) with active cash flow.
If the interested buyer contributed 10% equity (k40,000) and bank fund K360,000, for 40 years through BSP First time homer buyer scheme. The approximate repayment is K1,500 monthly or K750 fortnightly or weekly K375.
Yes, its cheaper and more affordable to buy than rent. For instance, a 3-bedroom house in Kennedy estate can go for rent at k1,000 week. However, if you buy the same house for k400,000 for 40 years, with 10% equity, you will repay only K375 per week until you eventually own the house.
Buying a property will secure your further and your kids further, as it’s a generation wealth. It can pass on from one generation to another. If you rent, you are basically paying someone’s mortgage off, at the end of the lease, you don’t own the property?
Bond fee is normally equivalent to 1 month’s rental.
There are 3 types of calculations landlord use:
- Multiply weekly rate by 4 to get the monthly rate : Eg: K1000 week x 4 = K4,000 monthly
- Multiply weekly rate by 52 weeks in a year, divide by 12 months in a year to get the monthly rate. Eg: K1000 x 52 weeks/12 months = K4, 333.33 monthly
- Divide weekly rate by 7 days, multiply by 365 days in a year and divide by 12 months to get the monthly rate. Eg: K1,000 per week/ 7 days per week x 365 days per year / 12 months per year = K4345.23