Often the interest accrued on a car repayment is higher than for a bond repayment, although the term for a bond is usually much longer. A R700 000 bond repayment at 7% requires a monthly instalment of R5 400 over 20 years. A car payment for the same value, and also at 7% interest, is R14 000 over five years. “While it will take longer to repay the bond, there is the advantage of having a roof over your head and an asset that appreciates, making a bond the better choice,” says a panel expert. “The mindsets of many South Africans need to change from investing in assets that appreciate as opposed to investing in assets that depreciate. It is better to invest in assets that have steady and stable growth over a medium to long term, even if these do not reflect a significant percentage growth month-on-month or year-on-year; and, to be honest, you don’t get much better than a home in that regard.