Property 24/10 - 528

'South Africans are buying property as if it is a Black Friday sale'
Boosted property sales, initially thought to be pent-up demand has continued for the past four months - but sentiment is divided on whether it will continue into 2021.

FNB data shows "Household Mortgage Advances show early signs of acceleration as Residential Property Market heats up."

Since early-2014, the more commercial property-driven Corporate Mortgage Advances growth rate has significantly, outpaced the strongly residential-driven Household Mortgage Advances category for most of the time.

However, the strong recent divergence in strength between the now relatively strong Residential Property Market and the weaker Commercial Property market may see Household Mortgage Advances become the relative “outperformer” in the near term.

Capitec launches new home loan offering at 6%
The property market is experiencing a rebound, despite the Covid-19 pandemic - with banks and bond originators alike noting an uptick in home loan applications and digitally-savvy Capitec has seen it as the perfect opportunity to launch its new home loan offering - which takes about 5-minutes to complete online and offers a competitive 6% interest rate.

Francois Viviers, Executive of Marketing and Communications at Capitec, says the offering was "developed in response to strong demand for a simple and efficient, digitally-led home loan option".

'Simple and paperless'
In a nutshell, it's a paperless process, meaning no admin-intensive paperwork or PDF docs to fill in. Previously, Capitec would send a qualified lead to its partner mortgage finance company SA Home Loans who would then start the paperwork and qualification process - but the new interface is perfectly in line with digital experience expected from the bank, says Viviers.

What's the 'golden' credit score number for bond approval?
A missed payment of as little as R100 in recent months could have a significant impact on your chances of securing your dream home when you apply for a bond. So, if you’re keen on buying a home, it’s best to check on any outstanding debts and clear them before you start the process of getting a home loan.

“We are finding that banks are looking closely at bond applicants’ credit scores, and even a small arrears within a 12-month period could count against them, and may result in the bond application being refused,” says Mary Lindemann, Operations Executive of BetterBond.

Is there a golden credit score number to aim for?
Lindemann says the higher your score, the greater your chances. Credit scores in South Africa generally range from 300 to 850, and some providers recommend a score of above 600 to qualify for a home loan, while others call for upward of 700.

Can you own property after being declared insolvent?
A Property24 reader who "qualified for automatic rehabilitation a year ago", says their recent application to buy a property was turned down by the bank. They now want to know, "What should I do to be able to buy an house again?" Although automatic sequestration takes places 10 years after sequestration, Legal Expert Simon Dippenaar says the consequences are far reaching, and the bank specialists agree.

Dippenaar delves into consequences of sequestration as follows:
"The sequestration of the estate of an insolvent is dealt with in terms of the provisions of the Insolvency Act 24 of 1936 (herein after referred to as “the Act”).

"The main purpose of sequestration is for the orderly and equitable distribution of the proceeds of the debtor’s assets where all of his creditors cannot be paid in full. Sequestration is aimed at dividing the debtor’s assets in accordance with a fair pre-determined ranking of creditors. It is also important to remember that the individual’s estate will not be sequestrated if it is not to the benefit of his creditors. When an individual is declared insolvent and his estate is sequestrated accordingly, it is not without consequences.

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