Must-knows for ceding your life policy when buying a home
Many consumers who are eager to finalise the house buying process often rush into taking out and ceding life insurance without first doing their homework.
The ceding of a life policy involves legally transferring a portion of the cover amount to be used as collateral by a creditor in the event that the policy holder is unable to meet their debt obligation.
Lee Bromfield, CEO of FNB Life, says when applying for a home loan, banks may require that you take out life cover as security if you do not meet a certain salary bracket. The life cover is then ceded and used as collateral against the home loan to ensure that your loved ones or beneficiaries still have a home in the unfortunate event that you pass away.
He unpacks key factors to consider when ceding a life policy:
South Africa’s ‘smart cities’ are driving sustainability
Property development and nature might not automatically go hand in hand, but more and more developers are moving towards incorporating nature into building design.
Green spaces prove popular, even in major city centres where they are seemingly rare. Rooftop gardens are springing up in central business districts in the likes of Hong Kong, Tokyo, Rotterdam and New York. Likewise, urban farming initiatives to boost food resources are fast becoming a global trend.
In South Africa, Johannesburg has long been considered the world’s largest man-made urban forest - boasting more than 6 million trees. And Cape Town’s CBD is set to change with the arrival of its first environmentally-friendly mixed-use development, Harbour Arch, says Nicholas Stopforth, Managing Director of Amdec Property Developments, the group behind Melrose Arch and the new Harbour Arch.
It’s coming up sunny for South Africa’s property market
The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
“Because our new President, Cyril Ramaphosa, understands business and the importance of stimulating the economy, it is expected that positive growth will be evident across various business sectors, including the property market, over the next 18 to 24 months,” says Chris Renecle, MD of Renprop.
“This was evident in the 2018 Budget Speech, delivered by former finance Minister Malusi Gigaba, where he noted: “We are convinced that as business and consumer confidence return, and as government follows through on its commitments to enable growth with prudent, fast and decisive action, we can exceed our growth projections.”
Baby boomers’ are changing the model of retirement living
A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
“The current retirement market is the baby boomer generation (born between 1946 and 1964), and they are very different from their predecessors who were more traditional and conservative in their general outlook, lifestyle and retirement needs,” says Sandy Geffen, Executive Director of Lew Geffen Sotheby’s International Realty in South Africa.
“Conventional retirement does not cater to their needs at all, as most boomers are now looking to extend their independent lifestyles well into retirement, and when they do give up the family home they tend to prefer to move to multi-generational communities, preferably with amenities.”
Tips for spotting rental fraudsters
South Africans are all very aware of violent crime and the efforts needed to reduce it, but so-called ‘white-collar’ crime is just as rampant, and the perpetrators are getting smarter.
“The rental property sector is being particularly hard hit at the moment by fraudsters determined to gain access to rental accommodation under false pretenses,” says Greg Harris, CEO of Chas Everitt Property Rentals.
“When the economy is slow as it is at the moment, we always experience higher demand for rental accommodation because many people put off buying their own homes, while others are forced to sell their homes and rent instead.