Interesting articles about insurance

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How to get your house paid off in less than half the period

If you were courageous enough to buy a home, you will reap huge benefits by paying additional funds into your home loan. Can you imagine moving to a new home or a second home, after seven years and the first house paid off?! It is yours now and doesn’t belong to the bank anymore.

Most buyers often take as large a bond as they can possibly afford. What they should really do is take a smaller bond, thus buy a smaller property. Something they could easily afford.

Get your house paid off over a reduced term

How to do it:

Increase the repayment, as determined by the bank, by a minimum of 10%. This will make a significant difference in the period. If the bank requires a repayment of R5000, you should pay at least R5500.

Every year when you have a salary increase, even a tiny increase, you should increase the repayment, in line with your new salary. Keep the percentage of your bond to your income, consistent.

Arrange for the debit order to be paid on the same day as your salary. Doing this wont show an effect in any month, but will decrease your repayment term by up to 18 months. Paying your bond on the first of the month or the date set by the bank, interest is calculated on the outstanding balance as at the day before. Paying early reduces the interest.

Discipline gets your house paid off quicker

Paying more than is absolutely necessary, requires substantial discipline for most buyers. Just know that every added payment to your bond, makes a difference. Not only in the repayment term, but also the total amount you pay.

Recently the prime rate, which was 9.25% increased to 9.5% and might increase to 10% in the next twenty four months. There are hardly any investments that are guaranteed to yield a return of 10% per annum. When you  pay additional funds to your bond, you’ll be saving 10% on that amount.

Buying or renting?

When you wonder whether you should buy or rent the property you live in, it makes sense to buy if you’ll be living there for eight or more years. Staying in a property for a shorter time, the transaction costs of buying and selling, makes renting a wiser option. From eight years on, rental escalations will outweigh the benefits of renting and it makes more sense to buy.

Other benefits of paying more than required

The substantial interest rate saving is not the only benefit of  increasing your bond repayments. These days employment is not guaranteed to the employable. Many salary earners are so over-indebted that being without a salary for three months, will force them to sell something, just to get by.

A benefit of paying extra to your bond is having some breathing space, some capital and emergency money if you need it.

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Air strikes continue reinforcing Israel Gaza conflict

A number of rockets were fired from Gaza after Israel halted its operations earlier this week. Resultantly Israel resumed air strikes on Hamas-controlled Gaza.

Israel had accepted an Egyptian ceasefire proposal and ceased operations. Hamas declined the initiative as a “surrender”. Reportedly Palestine lost 192 people in eight days of Israeli air strikes. Israel reported the first fatality on Tuesday.

Israel launched Operation Protective Edge to stop Hamas militants firing rockets into Israel. Prime Minister Benjamin Netanyahu said that Israel had “no choice” but increase its operations. Can one blame the country for protecting its own?

Hamas chose to continue fighting. By Tuesday 125 rockets had been fired into Israel. Netanyahu warned that if the rocket fire continued, Israel would hit back hard – and now it has.

What sparked the Israel Gaza conflict?

Tensions exploded in June when three Israeli teenagers, one with American citizenship and all them seminary students, were kidnapped and killed. They were hitchhiking in the West Bank. The kidnap took place on June 12 and their bodies were discovered on 30 June. Then Israel arrested more than 300 Palestinians, many of them members of Hamas. At this time Hamas warned Israel it had “opened up the gates of hell”. Hamas demands concessions, such as the lifting of the tight constraints Israel and Egypt execute on Gaza’s border, before they are prepared to consider any deal.

Egypt refuses to give up on diplomatic efforts after the setback, but the continuation of hostilities raises the question again of whether Israel will eventually order ground operations.

Israel Gaza Conflict – The consequences of continuation.

The IDF attacked 30 targets in Gaza, including 20 concealed rocket launchers, tunnels, a weapon storage facility and operational infrastructure used by a senior militant, after restarting its air strikes.

The terms of the Egyptian initiative was that after the ceasefire a series of meetings in Cairo would follow, with high-level delegations from the two sides.

According to Hamas spokesman Osama Hamdan they only heard about the ceasefire initiative in the media and it could not be put in place without details of an agreement made known to Hamas.

The armed wing of Hamas ignored the ceasefire declaring its battle with Israel would “increase in ferocity and intensity”.

Don’t wait for the bomb to explode to wake you up to the fact that you lack decent Insurance!



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Investors withhold their money

Unstable economy due to strikes

In this beautiful country, South Africa, our unstable economy is the result of unions being alowed by government to have autonomy to rule that workers are forced to strike. Most of these workers, if not all, can not afford to loose pay due to strikes, but they fear for their lives if they dare to pitch up for work. It is common knowledge that workers are intimidated during strike periods. Even murdered.

Members of the unions are mostly unschooled and low skilled people, who are easily convinced by people who drive huge shining expensive cars and live in luxurious homes, but they don’t realise it is their money, their membership fees that paid for all that. None of those union executives, go without food, electricity, warmth in die winter or any other necessities, ever.

When hunger strikes as a result of loss of income, resultant from the strike, it is always NGO’s  and charities that have to step in to feed the people. Why don’t the union, from their funds, feed their members? They rather feed them lies to create racism and anger and more poverty!

Unstable economy leads to Investor doubt

The question is: ‘would you invest your money in any company that could be affected by strikes to the point where production comes to a complete standstill?’

Strikers don’t understand that higher salaries is the cause for lower profits, higher food prices, higher costs of production, increasing the price of the products produced. It is a never ending spiral. This causes our rand to fall against the dollar, the pound and the euro, which increases the costs of imports and unfortunately SA has to import many products that isn’t produced locally. The share price of the company with striking workers automatically fall and the potential investor looses interest and turns away. Can you blame him? No! The result: the present unstable economy becomes more off-balance and the spiral continues deeper into the dark pit.

Another consequence of higher salaries are that employers are forced to reduce their employees and even close up shop. An increase in unemployment is inevitable. Increased unemployment results in increased crime. Increased crime results in higher costs to secure property as well as decreased tourists to come and spend their valuable pounds and dollars in our country.

Is it clear yet? Let me spell it out! Strikes are causing the present unstable economy.

Experiencing any kind of loss without Insurance causes instability in your budget!