Friday, 28 June 2013

ABSA June Residential Building Statistics June2013

Thank you Jacques du Toit from ABSA Home Loans for this great insight.

Residential building activity improving compared to a year ago
Residential building activity, i.e. the number and value of housing units for which building plans were approved and the number and value of housing units completed in the South
African market, improved further in April 2013. This is consistent with a continued improvement in the Bureau for Economic Research’s building confidence index in the
second quarter of 2013, which rose to its highest level since the fourth quarter of 2008.

The real value of plans approved for new residential buildings was up by 21,2% year-onyear
(y/y), or R1,74 billion, to R9,95 billion in the first four months of 2013 from R8,21
billion a year ago. The real value of residential buildings reported as completed was up by
12,6% y/y, or R808,15 million, to R7,2 billion in the period January to April from R6,39
billion in the corresponding period last year. These real values of residential building
activity are calculated at constant 2010 prices.

The number of building plans approved for new housing recorded growth of 43,5% y/y in
April, largely driven by the segment for flats and townhouses. This strong growth in April
contributed to growth of 14,7% y/y in plans approved in the first four months of the year.
The construction phase of new housing saw growth of 16,4% y/y in the first four months of
the year, influenced by growth of 35,1% y/y in the month of April. The segments of small
and larger-sized houses were mainly responsible for the strong growth in April.
Residential building activity will continue to reflect conditions with regard to the economy,
household finances, consumer confidence and factors impacting the market for new and
existing housing.

Tuesday, 25 June 2013

Love the Kruger Park to visit but prefer a home on the outskirts to live.

If you are like me, I love to visit the Kruger Park, spend a day on the outside, play some golf and then go back in for the day.  I first visited Raptor’s about 10 years ago and the view offered secure living in a well-maintained wildlife estate,  situated on some of the finest bushveld that South Africa has to offer. Game abundant, lots of things to do, great restaurants in town and there are some great houses to buy in this place and the prices are excellent.

Not only is Raptor’s View a fantastic investment but it also offers plenty privacy and a school if needed, an airport nearby and traversing rights on the Blue Canyon conservancy.

If its family and friend entertainment you love, this place is for you.  I went to look at a few places in the area and looked for a bargain (as we all do) and found a place that was just up my street - perfect for the great entertainer (ha my wife, not me), this house was situated on the banks of the riverbed with a full view onto the Drakensburg Mountains and some huge leadwood trees, great pool and braai area

So these great estate agents in Hoedspruit gave me what I want, but being overexposed at the banks I could not come up with the mortgage - drats and have had to let it go

My lesson - see if you can afford a place in the bush in advance with a mortgage originator such as Wizard Midrand.

Get the best estate agent in Hoedspruit to work for you

be patient!  Your bushveld property is waiting for you - and so is mine!

Thursday, 20 June 2013

What is it that bond originators do and why not go the D.I.Y route?

What is it that bond originators do and why not go the D.I.Y route?

such a great question and you will always get your pros and cons depending on whom you are speaking to.

We do know that bond originators often shop around and are kind of impervious to which bank you are looking at but finding someone that is great is not always easy.  So do you get references?  I would.

Bond originators assist you by negotiating with all the major lenders on your behalf, thus taking the fear out of applying for a bond and even work with SA Homeloans, BMW finance and Investec not just Standard, ABSA, FNB and Nedbank.

The service of a bond originator is free to you, the applicant – this is because bond originators get paid by the banks.

This means less leg-work for you and a lot less admin for you, the client.

Even where the home-buyer has a really good, strong relationship with their own bank, bond originators allow for room to shop around for the best deals and to look around at all the other banks simultaneously, getting you the best deal there is.

Every now and again some banks seem to get into a tiff with the originating groups and then for a while no longer allow bond originators to act on their behalf, therefore it is advisable to first ask the originator who they represent and the good ones will make a plan regardless.

Tuesday, 11 June 2013

FNB Home Loan requirements for Non-Resident application to purchase property in South Africa

If one or more of the applicants are Foreign National or Non-residents, the application will be treated as a
Foreign Choice application.


A Non-Resident is a person who is not a South African and who is living and working abroad.


  • Valid Passport, i.e. with a future expiry date
  • 50% of purchase price has to be introduced from abroad. These funds should be paid by the applicant to the registering attorneys and proof of this deposit is required for the Excon application
  • Excon approval will be required before the loan can be finally approved
  • Excon application fee of R1140 payable by applicant
Foreign Nationals:
A Foreign National is a person who is not a South African and lives and works in South Africa on a temporary basis.

  • Valid Passport, i.e. with a future expiry date
  • 50% deposit and proof of the source of these funds must be provided to the registering attorneys
  • Valid temporary residence permit, i.e. with a future expiry date. Please note that application for a new temporary residence can be conducted 3 months prior to expiry. An expired temporary residence permit will delay registration
  • Employer’s letter confirming employment in South Africa
  • A Foreign National Declaration signed at the bond registration attorneys
  • An active primary cheque account with FNB for at least 6 months

Foreign National and Non-resident exclusions:

Lesotho, Swaziland, Namibia and South Africa are part of a Common Monetary Area and therefore, applicants from Lesotho, Swaziland & Namibia will be treated as South African applicants;

  • Juristic entities excluded
  • Additional properties excluded. Foreign Choice is only available on a NEW property, and only one property may be registered with the bank
  • Switches from another financial institution excluded

Foreign National and Non-resident access to funds:

Non-Residents & Foreign Nationals are not allowed to access funds from the home loan after the initial payout is made on registration of the bond. This includes Flexi Option, Future Use, Prepaid, Readvance and Further Loan.

If you need further assistance, please fill in the online form here -

Wednesday, 5 June 2013

Common Debt Pitfalls - get a home loan!

Here is a list of the most common debt pitfalls that South Africans tend to make – avoid these and turn your
credit record around, and before you know it you will be able to approach a home loans advisor to assist in applying for that bond to buy your dream home.  Thank you Wizard Midrand for this article.

Here’s a list of the eight most common financial errors made by South Africans which you should avoid at all costs:

·         Consumers automatically take for granted that interest rates will not go up when they buy a property – this is when they make the mistake by buying a property above their means.

·         Males in South Africa often go to micro lenders to finance their “lobola” which means that traditional weddings often start off on a bad financial note.

·         Having a home repossessed is perhaps one of the most debilitating things that can happen to anyone, and often people are too afraid of what the Jones’s will say; this leads to many home owners dragging their feet to move to a smaller more modest abode.

·         The home that is affordable is usually replaced by a rental option that is just as upscale and as expensive – all this to save face!

·         Using a balloon payment option to finance an expensive car is insanity, but it is done more often than not. The sad reality is that many of these individuals driving around with their expensive “balloon financed” vehicles cannot even afford to replace their tyres; these cars are then traded in at a loss and in the end the car owner loses a substantial sum of money.

·         Money is a taboo topic in many relationships which is only discussed once funds have run dry - it is a fact that many marriages break down to a lack of communication, especially when it comes to money.

·         If you owe creditors money, random debt payment is not the way to go forward – rather put together a solid repayment plan and stick to it at all costs.

·         The creditor who shouts the loudest usually gets paid first – remember to stick to your plan to ensure you become debt free in the near future. And for heavens sake get a free credit report.

Don’t guess what you owe in total – work out a plan, stick to it and work out what you owe your creditors in total. This way forward will ensure that your credit record is corrected over time, making you bond ready when applying for home loans.