Thursday, 29 May 2008

Property Legal Seminar - TPN Tenant Profile Network

TPN is proud to host our annual Property Legal Seminar

An invitation to all TPN members – Property Managers, Landlords, Agents, and other interested parties.
TPN remains committed to providing our industry with access to professional and relevant industry information.
We have partnered with Fullard Mayer Morrison Inc. for the 2008 Seminar.
Don't miss this opportunity to get a practical compact session


  • Charging interest, penalties and default administration charges
  • Terminating a monthly lease on notice
  • Cancelling a lease for breach
  • Practical aspects of the landlord’s tacit hypothec
  • Working with letters of demand
  • Reporting a defaulting tenant to the credit bureau: the new rules
  • Section 31 rent interdict summonses
  • Section 32 rental attachments
  • Commercial and residential evictions
  • Extra-judicial evictions considered

Capita selecta of certain practical aspects: liquidation, sale of building etc
Review of recent court cases and legislative developments impacting on leases

Where and When?
Date: 19th June 2008
Time: 08:30 for 09:00 – 16:30
Venue: The Theatre on the Track
Address: 1 Monza Place, Kyalami Business Park, Midrand
Cost: R600 (excl VAT) per delegate

    Space is strictly limited and is on a first come, first served basis.
    Should you indicate that you wish to attend, a confirmation of registration document and invoice will be despatched by e-mail.
    If you have any queries, don't hesitate to contact Michelle or Delia on 0861 876 000, or email them at

Thursday, 22 May 2008

Standard Bank Home Loans: Std Bank Change Lending Policy!

Standard Bank Homeloan Changes to Cost Inclusive offerings, Vacant Land and Loan To Value loans.

In light of current economic circumstances Standard Bank Home Loans has made the following changes with immediate effect

Cost Inclusive loans:

Standard Bank will no longer be offering Cost Inclusive Loans to NON-first time home buyers.
Jumpstart (first time home buyer) loans will be restricted to a maximum loan amount of R1 million (excluding costs).

Vacant Land:
All Vacant Land loans have been restricted to a maximum LTV of 75%.

Standard Bank will also require deposits for higher value loan amounts:
All loan amounts greater than R3 million will be restricted to a maximum LTV of 80%

Seems as though my predictions were incorrect! They're all following suit!!

Monday, 19 May 2008

Change With The Times! A Word From The Wizard Director Team!

“You can’t be a Real Country unless you have a beer and an airline – it helps if you have some kind of a football team, or some nuclear weapons, but at the very least you need a beer.” Frank Zappa (1940 – 1993) rock and roll musician

“You can’t get a Real Bond unless you use a Real Bond Originator - it helps if you have a family banker, or closely related credit controller, but at very least you need a Bond OriginatorBruna "The Queen", Rock and Roll bond originator.

Bond Origination cannot be Real unless it offers the best choices to our applicants... we believe that a conservatively managed bond application is the only way to go ahead when putting together a home loan application. We, as bond originators need to be increasingly prudent for our clients so that they can buy what they can afford.

We want to continue building a strong working relationship with our clients even while fundamental reasons for negativity are undoubtedly of concern. Keeping things positive. Wizard Home Loans.

Tuesday, 13 May 2008

Absa's New Credit Lending Policy!

Followin on my previous article (Absa Home Loans), I thought I'd share a little more light into Absa's credit lending policy changes.

ABSA have announced that with effect from Monday, 12 May 2008, the following maximum permissible Loan to Value ratio’s will apply:

R0 – R800 000 : Maximum LTV = 100%
R800 000 – R2.7m: Maximum LTV = 95%
R2.7m – R4m: Maximum LTV = 90%
R4m: Maximum LTV = 85%

Vacant Land (irrespective of Loan Amount): Maximum LTV =75%

In circumstances where the applicant is able to cede suitable collateral security to the bond, thereby reducing the risk to the relevant maximum permissible level, ABSA may consider approving a higher loan amount.

ABSA will not entertain any cost inclusive loans, i.e. where the risk will exceed the above maximum LTV’s, with the exception of ABSA’s My Home product, where cost inclusive loans to qualifying applicants will still be considered.

Applications which are in excess of the above permissible LTV levels will not be submitted to ABSA.

Friday, 9 May 2008

ABSA Home Loans - No more 100% bonds! WELL ALMOST!

Well, if they're not trying to force property prices down in South Africa, I'll eat my shorts.

As of Monday 12th May 2008 ABSA home loans will only offer 100% loans to people purchasing properties under R800 000.00. Gone are the days of buying massive properties with no cash on hand.

As From Monday ABSA will place a cap on LTV(Loan to Value) going forward.

R0 – R800k = 100% bond
R801k – R2.7m = 95% bond
R2.7m – R4m = 85% bond.

This means that buying a property of R2.8million will require you to have a R420 000 deposit for your place.

Once again I put emphasis on the Sub-Prime Mortgage market in South Africa.

Other Articles:
Absa Home Loans - International Mortgages
Absa Home Loans - A Switched on Unit

Sub-Prime Mortgage Lending - South Africa's Next Goldmine

Well ladies and gents, don't know about you but I think today is the first time: I've actually managed to breathe since these public holiday's we've had.

For the first time in my life I realised that public holidays aren't actually that cool. Yes I'm getting old, in fact it's my 30th on the 12th June so I'm getting cockier by the minute too. WIZARDMAN is turning 30 years OLD!

I read a Standard Bank report the other day and after trying to cypher through the financial gibberish that's so often put in these reports something hit me like a steam train.

The current trend that South Africa's following is the trend of the US property market between 2002 and 2006. The only difference being that instead of us implementing a credit act and stricter credit lending practices after our sub-prime lending crash we've managed to implement the credit act FIRST!

Was the credit act implementation possible a preemptive measure put in place predicting a sub-prime mortgage boom in South Africa? Is it the end of the banks being the major supplier of home loan finance?

Another thing that I was wondering, was why did OOBA re brand? Did they re brand in an attempt to break away from the Mortgage SA (bond origination) type company and become the new SubPrime Mortgage Lending company?? Has OOBA taken the first step?

Let me know what your thoughts are on this topic? It's something that's really fascinating and possibly the next big BOOM in the S.A. property market.

Monday, 5 May 2008

Home Loan Declines Up - Why - Banks Need to Meet SLA Requirements

It's a fact.

For every home loan application that's going into the banks these days, the home loan application is getting declined at least once. Not because you can't afford it, not because you have a bad credit record or listing with ITC but because the banks in South Africa are scared and not meeting their SLA's.

Now, as we all know corporate companies and most companies these days need to set SLA's and lets face it, banks are run by SLA's!!! If SLA's are not met certain heads will fly. These are service level agreements for those of you not familiar with the term, that are put into place to improve company performance etc etc etc... *bull---- **cough*. By declining home loan applications the banks are now meeting their requirements.
Let me paint this picture...

I submit home loan application.
I resubmit the home loan application.

I resubmit the home loan application.

On the banks books 1 credit application granted out of 3 requests (30% success rate, means I'm now meeting the new NCA regulated requirements for credit applications)!!!

The fact of the matter is, the banks are scared to provide credit to clients because should that client not pay and his reason for not paying being affordability, the banks are liable for reckless lending...

So now we ask ourselves. Was the credit act put in place for the banks or for us???