Are you financially prepared to own a home?
ReMax - South Africa
Since the National Credit Act came into effect, prospective homebuyers have been required to have their financial affairs in order before they apply for a bond. While banks have become slightly less stringent since the act's inception, financial institutions are likely to tighten up their lending criteria in 2017 and bond applicants will be put through their financial paces before being approved for a home loan, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
“If you have made the resolution of purchasing a home during 2017, you will need to ensure that you have assessed your financial situation and answered a few pertinent questions before approaching your bank for bond approval. Currently, only around 65% of first-time buyer bond applications are approved, which highlights the importance of being financially prepared before applying,” says Goslett.
He provides a few financial questions that you should answer before approaching your bank for finance:
New financial product does away with rental deposit
Jawitz - South Africa
In today's economy, it isn't easy for every tenant to produce a sizeable deposit to secure a property. But often two or even three months' worth of rent is required, making many tenants fall short of consideration.
Jawitz Properties in conjunction with oobainsure (the insurance arm of the bond originator, ooba) has launched a product called Rent Protector, which aims to solve this very problem and put the power back in to both the hands of the tenant and that of the landlord.
"The product requires that tenants need not put down a deposit, and instead works as a rental insurance policy covering missed payments, legal expenses and offering a host of other benefits, making this a tangible and financially, beneficial product for both tenants and landlords," says Natalie Muller, Regional Head of Rentals for Jawitz Properties in the Western Cape. "And we offer it to all our landlords nationally, as well as to tenants looking for alternatives to high deposits"
New financial product
FNB-TPN - South Africa
IS 2017 FINALLY THE YEAR WHEN WE START TO SEE RESIDENTIAL YIELDS RISE AGAIN, TAKING THE MARKET GRADUALLY TOWARDS A MORE ATTRACTIVE BUY-TO-LET OPPORTUNITY?
Looking into 2017, we expect that average house price inflation will by and large underperform rental inflation in another tough economic year. We project house price growth for 2017 to average around 3%, down from 5% in 2016, in lagged response to the economic growth slowdown and interest rate hiking of recent years up to 2016.
The result is expected to be some gradual increase in the Average Gross Yield for 2017, “gradual” being the operative word, from an expected average of around 9.1% at the end of 2016 to nearer to 9.3% by the end of 2017.