Read on Twitter
EMS Twitter has posted some terrible stuff, but this is worse than Arsenal's defense. https://twitter.com/MahlodiJR/status/1276620761399209985
Here's why this tweet makes zero sense:
1. Relative financing period across the assets are very different. A car is usually paid off over 4/5yrs while a home loan typically extends to 20yrs
Same asset value & a shorter time to pay = higher monthly payments.
Math, not meth
1. Relative financing period across the assets are very different. A car is usually paid off over 4/5yrs while a home loan typically extends to 20yrs
Same asset value & a shorter time to pay = higher monthly payments.
Math, not meth
2. Entry level car prices start off high
If you finance a car for R250k, you're comfortably in the R5k/ month range. That's before fuel, insurance & general maintenance (if there isn't a motor plan).
Most people pay roughly the same monthly amount for their first car.
If you finance a car for R250k, you're comfortably in the R5k/ month range. That's before fuel, insurance & general maintenance (if there isn't a motor plan).
Most people pay roughly the same monthly amount for their first car.
3. Situation is salary dependent
Pravin (who came from India) & Pravesh (from Durban) both bought Polo Vivos for R250k.
Both pay R5k/month.
Pravin earns R200k a month, after tax. That's 2.5% of his net salary.
Pravesh earns R10k a month? That's 50% of his net salary.
Pravin (who came from India) & Pravesh (from Durban) both bought Polo Vivos for R250k.
Both pay R5k/month.
Pravin earns R200k a month, after tax. That's 2.5% of his net salary.
Pravesh earns R10k a month? That's 50% of his net salary.
4. Distribution of rental costs are wider than vehicle prices
If you're renting a place in one of those developments with 1200+ units in Fourways (the ones that are like hospitals)
... it's priced differently to a same size unit in a smaller complex in Sandton or Midrand.
If you're renting a place in one of those developments with 1200+ units in Fourways (the ones that are like hospitals)
... it's priced differently to a same size unit in a smaller complex in Sandton or Midrand.
5. Trade-off between car & house costs
If you're stuck with paying R5k/ month for your car you then you might decide to trim other major expenses.
So maybe you find a cheaper rental or share an apartment.
Don't let anyone make you feel bad about numbers that are normal.
If you're stuck with paying R5k/ month for your car you then you might decide to trim other major expenses.
So maybe you find a cheaper rental or share an apartment.
Don't let anyone make you feel bad about numbers that are normal.
"KK, why are you comparing the mortgage period with a rental?"
Most people would (at the very least) try to rent out houses at a rate that covers their bond payments. In SA it can get messy with the divergence between the two.
Buying to rent doesn't always work out smoothly.
Most people would (at the very least) try to rent out houses at a rate that covers their bond payments. In SA it can get messy with the divergence between the two.
Buying to rent doesn't always work out smoothly.
Finer threads than Armani
