Where
is our hard-earned money going?
It is obvious that today’s 2012 budget speech by Pravin Gordhan will affect everything that we are
going to be paying for in the coming year; this includes our insurance
premiums, the interest rates on our bonds, borrowing money, education, and all
the utilities that we use on a daily basis. The SA budget will also affect the
food we consume, the clothes we wear, our old-age pensioners, water and lights,
our business lives, and anything to do with leisure.
It is going to be interesting to see how
the 2012 budget speech will affect
the ordinary man in the street, and especially those that are in need of buying
a home this year. The budget will no
doubt affect anyone investing in property in a very big way.
If the SA Government continues to spend as
much on public servants’ accounts it would then be a tough one to swallow, and
will have an adverse effect on everyone living in SA.
Although the property market has slowed
down its pace in the past couple of years, there are those that still need to
buy homes for a variety of reasons. These could be first time home buyers, those
taking up job opportunities in different and varied locations for a variety of
reasons; there is a multitude of reasons for buying or changing a home, even in
a tough economic climate, and the 2012 budget
speech is going to have a domino effect on those that need to invest in
properties, especially if it is for the very first time.
Many home owners forget to build essential
insurance into their costs, and remember that insurance companies are always
going to look at a multitude of factors that will affect monthly premiums.
Location is always a very pertinent point to take into consideration,
regardless of what the outcome of the SA
budget is going to look like later
on today. Insurance houses will always take into consideration the level of
security you have installed to safe-guard your largest asset as well, and
location, location, location is the biggie here.
Bear in mind that if you buy property where
there is a tendency for landslides or flooding, your insurance house has the choice
to exclude these conditions; find out if your insurance would be willing to
cover for flood damage, etc., especially if you live in an area that is prone
to natural disasters; most times, though, the insurance company will load your
household insurance for these claims. Remember that looking at the fine print
and asking whether your insurance would cover for these eventualities is all-important. If
you are in doubt regarding insurance cover, it is always prudent to ask someone
you trust to give you and honest second opinion. Should the location of your
home have a tendency towards being a fire-hazard, such as a thatch roof home,
then your insurance company would automatically insist that you add on extra
lightning conductors to safe-guard your home.
SA
Budget or no, when looking to buying or investing
in a property, look for the best in the business; select a trustworthy estate
agent with an excellent track record, and when insuring your home, it is
prudent to shop around to find a quote and package that is best suited to your
needs.
When you invest in a property your insurance company will be particular about a couple of other factors when
covering your home.
These are:
·
Safety; ensure that all the
wiring, plumbing or gas lines are in peak condition.
·
Your prospective home has to be
in a reasonably good state of repair when you are looking for insurance cover.
Remember that you will have to have a good
credit record when applying for a bond, or for insurance so ensure that your
credit history is healthy; you can easily find this out online from the three
major credit bureaus.
It is going to be an interesting and
challenging year not only for South Africa, but also for our European brothers
and sisters. Do your homework before making any financial decisions in 2012 to
safeguard your assets. The 2012 budget
speech focus is going to be interesting and will show where our money is
going to be spent.
