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Quick Area Review:
Cape Town is one of the world’s most magnificent cities, boasting wonderful, clean and safe suburbs. Most areas in and around Cape Town are a good option, have a large selection of houses for sale, and are in general considered safe and secure to live in. Few places in the world can beat the charisma that Cape Town offers to many, including international tourists.
The West Coast of South Africa offers an idyllic existence if you are searching for a smaller place to settle down in. Little towns such as Yzerfontein, St Helena Bay and Churchhaven offer the kind of lifestyle that dreams are made of.
The little towns found in the Karoo, such as Beaufort West, Britstown, Colesberg, Hanover and Laingsburg are only a few mentioned here, frozen in time, with the townsfolk living life at a sedate and slow pace.
Port St. Johns on the Transkei Wild Coast, the exquisite Garden Route, and Cape St. Francis close to Port Elizabeth, Durban and the West Coast of South Africa are all options that one should look at when searching for that perfect house for sale.
Johannesburg and Pretoria offer job opportunities, but when looking for quality and a little piece of Heaven, then look a little father afield, as you might be pleasantly surprised.
To give you an Idea of how to calculate Equity, You will need to know the current marketable value of your home,
You will need to know the balances of all of your mortgages and any lines of credit that use your home as collateral (known typically as Home Equity Lines of Credit).
Because of the sub-prime mortgage crisis of 2008, most banks stay within 80% of your total equity (or “loan-to-value” ratio). They will “loan” you 80% of your home’s “value”. Depending on the banks risk tolerance and your credit, they could raise it to 90%, but you may have a higher interest rate.Let’s say your home’s market value is $350,000. You owe $125,000 on your first mortgage and do not have a second mortgage or any lines of credit attached to your home. You do want to get a Home Equity Line of Credit, and your bank will lend you up to 80% loan-to-value.
Equation: $350,000-$125,000=$225,000 the amount of equity in your home.
Maximum line of credit from your bank: $225,000 X 80%=$180,000.This is the maximum the bank will loan in this scenario, solely based on the home’s value.
