unbelievable
New member
Hi everyone,
So I’m relatively young (22m) however been working since 15 and I’m in a pretty high position job, Medical practice manager. I do this and 3 other side jobs while studying (Final year BA, working towards PhD).
Because my expenses are relatively low, R14 00 - R17 000 per month, I am able to save a lot. On a good month I can put away R25 000 but on almost all months I can put away R20 000. My partner is also studying but is recently starting a job and is willing to contribute R5000 into savings.
I’m looking at buying a house before 30. My credit is is pretty good (640/720) and I have R120 000 credit available to me through CC or loans. I don’t think I’d struggle to get a mortgage.
However I am wondering why I would take a loan. It takes 20 years @ R18 000 to pay off a R1.75 million house. If I put R25 000 away every month for 5 years with an increase of 5% p.a, I’m looking at getting R2.1 million (R1.6 million in todays money).
So why pay off a house loan over 20 years when I can own a house in 5 years with savings? Am I missing something?
So I’m relatively young (22m) however been working since 15 and I’m in a pretty high position job, Medical practice manager. I do this and 3 other side jobs while studying (Final year BA, working towards PhD).
Because my expenses are relatively low, R14 00 - R17 000 per month, I am able to save a lot. On a good month I can put away R25 000 but on almost all months I can put away R20 000. My partner is also studying but is recently starting a job and is willing to contribute R5000 into savings.
I’m looking at buying a house before 30. My credit is is pretty good (640/720) and I have R120 000 credit available to me through CC or loans. I don’t think I’d struggle to get a mortgage.
However I am wondering why I would take a loan. It takes 20 years @ R18 000 to pay off a R1.75 million house. If I put R25 000 away every month for 5 years with an increase of 5% p.a, I’m looking at getting R2.1 million (R1.6 million in todays money).
So why pay off a house loan over 20 years when I can own a house in 5 years with savings? Am I missing something?