How to Buy a HomeDo the Banks really want to lend?

Do the Banks really want to lend?

Adele — Tue, 20 Jul 2010 14:02:48 +0000

Despite the recent increase in market activity and uptick in prices, the
recovery of the property market still hangs in the balance – and will be
tipped one way or another by the banks.

That’s the word from mortgage originator Property Factor, which says in its
latest newsletter that while the banks are advertising 100% bonds, the
success rate of applications for such bonds is actually only around 3% to
4%. The truth, it says, is that most buyers are still required to put down a
deposit. “And the higher the deposit, the better the chance of obtaining
bond approval and the more favourable the interest rate will be.”

The company also says that banks’ internal scoring systems have been
tightened, and if applicants don’t meet the minimum scoring, which is
calculated by computer, their applications will immediately receive a
non-negotiable ‘system decline’.

It is also very difficult, the Property Factor says, for anyone whose income
comes from any other source but salary to obtain a home loan. “Should
applicants receive income other than a salary, such as commission or
overtime, some banks will only take 50% of the average income over six
months into account when determining affordability.”

As for loans to buy rental properties, “some banks are not taking rental
income or potential rental income into account at all, while others will
only consider 40% of the rental income.”

Property Factor believes that the National Credit Act is too easily blamed
for keeping the lid on growth in mortgage lending, and that prospective
buyers should now be asking why, if they can prove they can afford a bond in
terms of the NCA, their applications are being so easily declined.

Meanwhile Rob Lawrence, national manager of originator Rawson Finance, says
share analysts and financial advisors are soon going to start querying what
sort of dividends the banks are likely to be paying in the coming year, and
that this many help home loan applicants.
“Every SA bank has had to write off huge bad debts and all those involved
in housing finance have consequently clamped down on loans. This double
whammy of big write offs and low lending patterns will inevitably impact on
their profits.”

Money is the banks’ commodity, he notes, “and if a bank does not sell its
money, the only other way it can make profits is through fee generation – an
option which is also under pressure at the moment.”

In the circumstances, says Lawrence, it does not make a great deal of sense
that the rejection rate on bond applications for homes is still sitting at
around 50%. “The current crop of write offs were bad loans that were made in
good times – but we are now in a different market and it needs to be
recognised as such. By now, the banks’ rejection rate on bonds could in my
view be 20% lower without undue risk to them. Home finance could and should
now be making a greater contribution to banks’ profits.”

Lawrence is also critical of the “score card” system of evaluating bond
applicants has merits, saying that it often fails to recognise the
realities of the new economy. “For example, the score card places a high
value on ‘stability’ and this is measured largely by the length of time that
a person has been in one job, either his current position or a previous
position. Freelance operators who work on limited contract periods are
looked at with suspicion – but in today’s business scene, work is
increasingly outsourced. Many of our most competent workers dislike the
corporate life and move from job to job in well paid consultancies – but
getting them a bond is well nigh impossible – and there are other areas the
banks should be considering to make it easier for them to give bonds

Selling through an Estate Agent

bradallen — Fri, 16 Jul 2010 18:46:32 +0000

We all know the process of selling through an estate agent. You select a couple of them, who value your property and you then select the one you want to instruct (usually the one who promises to get you the highest price). Someone then comes out to take photos, they put your property on the web and possibly into the local or national newspapers and then you wait.

It is not unusual for it to take at least 6 months for a property to be sold via an Estate Agent and in many cases even longer, in the current market. You must first pay for a HIP, as well as having to pay for up front estate agency fees which some estate agencies will charge even if they do not manage to sell your property. If they do manage to sell your property estate agents can charge up to 7% fee on the sale price achieved for the property.

Even before paying these fees people often end up spending a considerable amount of money repainting, gardening and generally trying to get their homes into the best condition they can in order to assist the sales process, with no guarantee that a sale will happen. Not to mention the stress of attempting to keep a home running whilst trying to keep it tidy for when potential buyers may want to pop in to look round.

Selling houses can be stressful at the best of times but, in this current climate selling property has become, in many cases an extremely stressful process.

Although selling property through Estate Agents has become the normal and obvious way to sell property it is not necessarily the best way for you and your circumstances.

If an Estate Agent does manage to find buyers who are interested in purchasing your property, this is only the first hurdle, there are many external factors that can upset the apple cart and prevent the sale actually occurring.

This is not necessarily the fault of the Estate Agent but, simply a culmination of uncontrollable factors. Just because a buyer is interested in purchasing your property, it does not necessarily mean they have the finance available to buy it. And in today’s market there is no guarantee they will manage to secure the necessary mortgage to enable them to actually purchase the property.

Even if the buyer does find a lender prepared to offer them a mortgage, if they are tied up in a chain and relying on the sale of their own property to enable them to purchase yours, there is always the possibility (which in today’s market his highly probable) that somewhere along the line there will be a break in the chain, that will potentially affect the buyer’s ability to purchase your house.

There are many other external factors that could affect a successful sale, such as the surveyor’s findings that a purchaser may have done on the house prior to the final signing of contracts.

Many people have spent monies making their property look as attractive and saleable as possible, paid estate agency fees to get their property on the Estate agent’s books. Had lots of people looking round with no offers made or some offers made but subsequently falling through; during this time the market is continuing to fall. Ultimately, to be advised by the Estate Agent that it may be worth dropping the price of the house to encourage more interest or facilitate a quick sale. All this while you also have to continue making bond repayments.

Ok so there are lots of pitfalls but selling through an Estate Agent is the only way to sell your property, right? Wrong! Contact us and ask us how!

Deals Falling over

bradallen — Fri, 16 Jul 2010 18:45:38 +0000

Having a property deal fall over has always been a hazard in any property market. However in a boom market these problems can be shorter lived because of the abundance of buyers and the speed at which properties transfer. However in the current market a deal falling over is not only more likely to occur, but can potentially have a greater impact on the sales process because getting the sales process moving is taking so much longer.

If you are like most people, you do not have a leisurely time frame in which to sell your house. Lots of people find themselves under pressure to sell their property, in a speedy fashion – this can be because you are relocating, have found another house you want to put an offer in on, want to move abroad, have been made redundant or find yourself unemployed, facing repossession or bankruptcy or severe cash flow problems.

If your situation does demand you to sell your property in a speedy manner, then instructing an Estate Agent may be too much of a gamble, as there are no guarantees of a sale, let alone a guarantee that the sale will occur at the speed necessary to meet your needs. Even if you have buyers who are expressing a level of interest they are not guaranteed to put in an offer, let alone make it all the way to the end of the process, whereby you actually sell the property. There are many external elements that will affect the sale of the property which is out of your control and the control of the Estate Agent.

What happens if the chain breaks at the last moment, or the buyer is unable to secure a financing? What are you going to do? Put it back on the market? Get an expensive bridging loan to allow you to purchase the property you desperately don’t want to lose out on?

The quickest and easiest way to sell your property is for cash. At IPS we work with a network of investors who can pay cash for your property and we buy property ourselves. You will get an offer within 48 hours and after just one viewing subject to certain criteria* If you are hoping to move into a new property but it is not ready, we can delay transfer to a time that suits you, allowing you to stay on in your existing home until you are ready to move.

Inherited Property

bradallen — Fri, 16 Jul 2010 18:44:29 +0000

When someone passes away, regardless of whether it is expected or not, there are often many time consuming and costly tasks that often have to be dealt with in this very emotional and stressful time. Inheriting a property can be a burden, especially if you are left with the responsibility of getting it sold.

Properties that have been lived in by elderly relatives, especially, are often dated and in need of repair. If you want to attract potential buyers this will necessitate you to source, organise, manage and pay for refurbishment works to be done, before you have received any monies from the property. This process may become even more difficult if you do not live near the newly inherited property.

If you choose to sell the property through an Estate Agent, it may not be a quick process and there is the risk that with the property vacant for a significant period of time it could attract vandalism and squatters. This can put you into a vicious cycle of not attracting buyers, having to pay more monies to repair damage, the longer that the property remains unsold. Ultimately 6 months down the line the Estate Agent will probably advise that you drop the price in order to attract more interest and then there will still be Agency fees to pay on top of that.

We can assist you with a quick sale of your property and will purchase properties that meet our criteria.

Divorce

bradallen — Fri, 16 Jul 2010 18:42:50 +0000

This is always a difficult time with lots to sort out and usually very emotional for all parties concerned. As well as restructuring your life and the lives of your children, you will need to find new accommodation, meet with Attorneys, make arrangements for the children and potentially sell the family home in order to enable you both to purchase separate properties and move on.

Selling the property through an estate agent can take a long time, which only adds to the emotion and stress of an already stressful situation. An unsold property can also make it impossible to get a clean break and start trying to rebuild a new life both financially and emotionally.

A much less painful way is to sell your property to is through IPS, who can give you an offer within 48 hours after just one viewing subject to certain criteria*. You can receive the cash quickly and be free to move on with your lives.

Distressed properties Introduction

bradallen — Fri, 16 Jul 2010 18:41:40 +0000

Due to the current economic down turn and the substantial increase in unemployment, it is not going to come as news to you that repossessions are now at record levels. With repossession becoming an ever increasing reality for many families in the South Africa, it is important that everyone understands not only the long term and also the short term affects, but also how it can be avoided.

If you are repossessed, you are added to the blacklisted at the credit bureau and all major credit agencies are informed. This means that your credit rating becomes adversely affected which in turn means that it will become incredibly difficult to gain credit of any description and very few banks would provide you with a financing now or in the future. The result is that you and your family would have to move out of your home and find elsewhere to stay, meaning that you have to face the trauma of uprooting your family. With the recession deepening it is best to do whatever is necessary to prevent repossession before it is too late.

400 new black estate agents for SA

bradallen — Thu, 22 Oct 2009 07:28:51 +0000

Bank, Estate Agency Affairs Board, French govt join the cause of industry’s racial transformation

As part of the transformation drive in the South African property sector, Absa Bank, in collaboration with the National Housing Finance Corporation, The Estate Agency Affairs Board and the French Development Agency, is overseeing the training of 400 black real estate agents.

Two-hundred of these trainees have already completed their theoretical training in accordance with the new educational dispensation for estate agents, and will graduate today.

“The project matches Absa’s transformational agenda in that it directly empowers and equips black South Africans, while also adding value to the communities in which we operate,” says Luthando Vutula, Managing Executive of Absa Home Loans.

“As the leading mortgage financier in South Africa, we continue to lead by example,” Vutula added.

In tackling the shortage of trained estate agents in townships and other previously disadvantaged areas, the training project is boosting the cohort of agents who can speak to prospective home buyers and sellers in their own language.

Well-trained agents, who can communicate effectively with emerging property owners about home financing, play a key role in educating South Africans about home financing and property ownership. This enhanced awareness will help extend mortgage providers’ reach into previously disadvantaged – and still under-borrowed – communities. Ultimately, this stimulates activity in a still relatively under-traded market segment.

“All in all, more informed decisions will underpin the development of the property market and will help breathe life into property values once the cycle turns,” says Vutula.

Vutula expects meaningful recovery in the property market by the first half of 2010, a trend which is being signalled by the Absa House Price index. Although overall house price movements are still negative, the declines are slowing markedly.

Notably, the affordable segment of the housing market (houses of between 40 and 80 square metres, with values up to R430 000) continues to clock up positive house price growth, albeit far more muted than the pace reported early last year. Year-on-year house price growth in the affordable segment has plummeted from nearly 15% in the first quarter of 2008, to just under 2% in the second quarter of 2009.

“Contrary to general perception the Affordable Housing portfolio is performing well relative to the other segments within the Absa Home Loans stable. In order to tap into the township market Absa Home Loans has designed a secondary market strategy wherein we address specific issues to unlock the market potential such as valuation methology & specific secondary market proposition thereby allowing home owners to access home loan finance to improve and renovate their homes.

Price changes in this market segment appear to be stabilising, thanks to a succession of interest rate cuts and a measure of relaxation in banks’ lending criteria in the third quarter of this year. The trend has helped preserve the positive equity – the excess of property values over mortgage values – in the affordable market segment.

In line with the goals of the Property Charter, the property sector and the estate agency industry face the challenge of drawing as many trained black estate agents into a recovering property market – and especially into the affordable housing market – as possible.

“This project does just that,” says Vutula. “It instils practical skills and entrepreneurial thinking into a group of people who are excited about industry prospects. It also bolsters Absa’s goal of seeing more South Africans – especially those from previously disadvantaged communities – owning their own homes and building their personal wealth.”

The training project is focused initially in Gauteng, KwaZulu-Natal and the Western Cape and has been designed to cater to the educatio

The views expressed here are those of the contributors and not necessarily shared by Realestateweb. This announcement is published in the interests of the Realestateweb community of readers. Submit a media release or blog by sending an email to news@realestateweb.co.za.

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Njengom thengi qaphela lezi izinto

bradallen — Sun, 11 Oct 2009 17:10:32 +0000

Ngaphambili kokuthi uthenge ikhaya,qiniseka ukuthi uphenya kakhulu ngaleyo ndawo ofuna ukuyithenga.Lokho kuzo kusiza ukuthola ukuthi leyo ndawo kahle kahle ingathengisiwa ngemali engakanani futhi lokho kunga siza ukuthi ukhone ukubeka imali yakho ebhangi.Phenya ngendawo phansi naphezulu.

Bheka ngaphakathi kanye nanga phandle ukuthi akumoshekanga.Unuke uphinde uzwe ukuthi leyo ndawo ayina damp na,namabonda uwezwe ukuthi awekho manzi kancane.
Qaphela uphende omusha noma lama phepha awo kuhlobisa amabonda ngoba lezo zinto zingabe zifihla ukubola kwendawo.Qaphela ukubola kwama plangu,iminyango na phansi,futhi ubheke inthuthu yama plangu.

Qiniseka ukuthi ama tayela waphuzulu kwendlu aphelele wonke ngoba maka ngaphelelanga kungenzekha ukuthi kunga ngena amanzi endlini,indlu inga mosheka.Qaphela izihlahla ezinkhulu ngabo nazo zi nga mosha amabhilidi.Indlu yakho mayi ngenelwa amanzi uzobona ngamanzi ngoba ayamosha.Amanzi mawamoshile chela umdayisi wendawo ukuthi ayalingise.

Bhekisisa nama bathroom ukuthi umoya uyagena;ubheke ukuthi izimpomphi kanye netoilet ukuthi kuya sebenza kahle.Bheka ukuthi imibala yama bondanda ne carpeti ukuthi kuhanbelana nemibala wena owuyikethile,ubheke ukuthi ocarpeti abana nkinga noma kumele ufake abasha.

Bheka amaplaki.Phezulu kwendlu uqiniseke ukuthi kuhamba kahle futhi indlu mayi ndala kungenzeka ukuthi kufanele ufake izinto eziningi kuyo.Phenya ukuthi yaqcina nini uku bhekiwa igeyser,ubheke ibokisi logesi ngoba iynthambo ezinga fakelangwa kahle ziyingozi futhi kunga biza kakhulu ukuzi lungisa.Qiniseka ukuthi uthola icertificati sogesi ngoba siyafuneka ngaphambili ukuthi indlu ibhaliswe ngegama lakho,ngoba nguwena ozo sizekala.Izintambo zogesi mazinga hambi ngendlela angeke usithole icertificate sogesi.

Bheka ukuti engadini uzodinga ukususa izihlahla ezinye,uphinde futhi ubheke ukuti ezinye izihlahla azimoshi na.Qiniseka ukuthi kune bhonda mawu nezi nyamazane.Maku nama gayti neminyanga wegalagi bheka ukuthi konke lokho kuyasebenza noma kudingiwa ukulungiswa.Bheka ukuthi phansi emgodini lapha okuphuma amanzi khona zonke izinto sihamba kahle na.Qiniseka ukuthi uyayi thanda indawo.

Bhuza umdayisi wendawo imibuzo eminingi kakhulu,phenya ukuthi yini indaba yena ayithengisa lendawo.Buza ukuthi leyo ndawo ayina zigebhengu na noma uthinthe ipholistashi ubabuze ukuthi leyo ndawo injani inezigebhengu kakhulu noma ungathenga iphephandaba uthola iyndaba zeyi gelekeqe zithini.

Zonke lezinto esikhulume ngazo ngaphezulu qiniseka ukuthi uyaziqaphela zonke lezo zinto mawu yobheka izindlu, hamba uphete iphepha elibhale zonke lezinto ezingaphezulu.Funda ukuthi” Ungathenga kanjani ikhayi nathi” i-IPS

Uncedo mawuthenga,uphinde uqashise

bradallen — Thu, 08 Oct 2009 06:39:39 +0000

Yini kumele ubhadale ibond,uma umqashi wakho angakubhadalela ibond yakho?Sebenzisa imali yebhangu uthenge indawo wenze umqashi wakho abhadale wena irent.Ukuthola iManagement Agent ethembekile kunzima kodwa thina sitholile ama Management Agent aphuma phambili futhi sisebenza nabo ezindaweni eziningi lana emzansi.

Manje kuproperty market i-investor ehlakanipile izocabanga ukuthi ingasizakala ukusebenzisa irental Agent ethembekile ezo qashisa indawo ye investor.
Ukuqashisa indawo yakho akusho ukuthi uzo khona ukubeka imali yakho ingasebenzi,kunzima wena kumele ufake isikhathi esinde kanye nomsebenzi omuningi.

Kuncono usebenzise iRental Agency eyaziwayo futhi encqobekayo.iRental Agency elapho ekuqaleni kuze kuyo qcina iyona ongayi themba ngoba ikhombisa ukuthi inendaba nawe.
iRental Agency ngokwayo yona kufanele yenze ukuthi indawo yakho iyaziwa futhi nabantu banga khona ukuyoyibona indawo yakho,kubalulekile ukuthi ube Nolwazi elincono ngom qashi wendawo yakho kufanele wazi ukuthi umqashi wakho unezikwelethi yebo noma cha kanye nama phepha avumisana ukuthi umqashi wakho uzohla isikathi esi ngakanani endaweni yakho. iAgency yona kufanele ihlanganise icontraki yomqashi ukuthi uzohlala isikhathi esingakanani endaweni ngabhambile kwalokho ideposit iyno okumele ibhadaliwe kuqala.Makwenzeka ukuthi irental management nayo iya vuma ukuphathana nezi ndaba zemali kanye noku koleka imali yerenti ephuma kumqashi wakho.

iEtchells & Young Property Brokers inezi mphawu eziphuma phambili kakhulu,iyona ephenyisisa kahle ngomqashi wakho.Futhi bane ndlela ebasebenzelayo kahle ukuthi bamakete maba funa abaqashi bendawo noma ibhilidi,neqembu labasebenzi be Etchells & Young Property Brokers bafundisiwe kakhulu ngenxla yetraining abantu maba wazi umsebenzi wabo bayakona ukusiza abanye futhi kuphuma izimphawu ezimangelisayo.Futhi bahlala bakhuluma nama investor abo ngasonke isikhathi,ukuthi ama-investor ahlale azi ukuthi kwenzekalani nge investment yabo.

Baziwa ukuthi bangama Rental Management Leader ngenxla womsebenzi wabo onqcomekayo. Banama portfolio manager kanye ne property management programme ehamba phambili.
IPS ne Etchells & Young isebenzisana kahle kudala isebenzisana ngalendlela,womabili lama ncompany abheka futhi baqiniseka ukuthi ama portfolio ama investor ahamba kahle kakhulu.
Vakashela iEtchells & Young Property Brokers mawu funa ukuqashisa indawo yakho lana eJohannesburg noma ePitoli.Mawu funa uku qashisa indawo yakho eKaapa vakashela iChorus Realty .Woma bhili lama agency angasiza kakhulu mawu funa uku qashisa.

Okumele ukwenze,uphinde futhi ungakwenzi mawu Investa

bradallen — Wed, 07 Oct 2009 11:14:02 +0000

Umbuzo uthi “U-investe noma unga-investi”

Noma kungaba ukutshontsha okuncane,kowda sokukonakele ukuthi kube nolwazi elincono ngabantu abakithi lana eSouth Africa.
Mawu kethe ukuthi ufuna ukuinvesta,izinyathelo ozozi landela yilezi”
The Do’s – Okumela ukwenze

Ukuphenya,ukuphenya,ukuphenya – Phenya ngomakhi wendawo noma we bhilidi,phenya ngendawo yakhona,phenya ukuthi indawo yakhona izoba nani,izokupha ini kahle kahle,njengoba kushiwo” ukufundisisa ngentho ukuzi kwazisisa kwakho kancono ngaleyonto kanye nomqondo wakho”

Location – Indawo Phenya kakhlu ngendawo yakhona,kungenzekha ukuthi iprice ayibhizi kakhulu kodwa lokho akusho ukuthi leyo ndawo izohamba phambili,kwesinye isikathi udinga ukusebenzisa imali ukuze ikhubuyele futhi….

Buy well – Thenga kahle Qiniseka ukuthi uwafunda wonke amaphepha,uphinde futhi uqiniseke ukuthi unemali kanye Nolwazi elizo phuma kumeli wakho
Qiniseka ukuthi izinombolo ziyasebebenza – Hlala nomuntu ozokwazisa kancono ngezindaba zeyi mali ngoba lowo muntu uzokhona ukuthi akukhombise izinombolo zemali ongayenza,akufunakali ukuthi uzandise kanti angeke ukhone.
Appoint the right advisors – Qasha abazi kancono – ngoba labo banto abazi kancono yibo abazokusiza ngazonke izindlela ngoba bayawazi umsebenzi wabo…

The Don’ts – Okumele ungakwenzi
Ungathembi ukuthi uzokwenza imali ngokushesha – Ahambile lawo malanga ungathenga i-off plan property uyithengise ngabhambile kokuthi ingene egameni lakho ibize wena. iProperty i-investment eyesi kathi eside futhi i-investment okumele uyicabangele udle amatambo wenqondo; uzobona ngesikathi ukuthi ikhula kanjani kanye nokuthi ikwenzela imali engakanani leyo property.
Ungazibi ukufuna noku dingekayo – noma kungaba lula kanjani,ungakhohlwa ukuthi ukufuna kuhlukumeza lokho okudingekayo.Makhu nama property amanengi endaweni eyodwa kuzo hlukumeza leyo ndawo.Makube akuna maproperty amanengi endaweni kuzo siza ngoba abantu bazo funa ukuhlala kuleyo ndawo.

Don’t be influenced by your emotions-Ungacabangi ngenhliziyo yakho cabanga ngekhanda lakho “Ungathandi iproperty thanda ukuthi leyo property izokwenzelani futhi ingaku lalethelani” uDolf De Roos yena uthi iproperty yi investment,masi khuluma nge investment sikhuluma ngezinombolo,izinombolo zisho ukuthi kungena imali,izinombolo mazi hamba kahle kusho ukuthi ne investment yakho nayo inga khua kahle,akumela ukathazeke ngalutho izinto zakho mazihamba kanjalo.Yini okunye ongakudinga?

Never be swayed by gimmicks –Ungavumi ukuthathiwa yizinto ezingasho lutho izinto ezifana nalezi “thenga indawo yokuhlala kunabantu abazoku bhadelela imali yakho yama bond instalment weyi nyanga ezinthathu. Uzibuze ukuthi yini indaba abantu banga funa ukuku bhadelela ama bond instalments wakho?iProperty abayibabazayo ukuthi ilunge ngemphela akuna sidingo ukuthi uzikhathaze ngayo leyo property kufanele izithengise yona abantu bangakasho lutho ngayo.Ngesinye isikahti abantu abanalo elinye ichebo kumele bathengise iproperty yabo futhi leyo property isentsha ayina nkinga ungathola ukuthi i-investment enhle kakhulu.

Oko kuqcina
Ungathengisi,iproperty i-investment engakuhambisa kude,kukhuphi lapho ongasebenzisa imali yebangi wena uzokhona ukubhadelela iproperty yakho,uthola ukusebenzisa imali yom hali wakho ukuthi ukhone ukubhadala imali oyitsheleke ebhangi,konke lokhu makwenzeka wena uhleli futhi uthola imali yakho nyaka ngo nyaka…..