There is no problem with Hoedspruit - 100% home loans available.

There is no problem with the estates in Hoedspruit.


Obtaining finance and a home loan even a 100% home loan is possible.

Why there are so many properties available, especially vacant stands is because when there was the property boom about 5 years ago, developers climbed on the band wagon and started developing all these estates. Some were great and some not.

As you know Hoedspruit is a small town so without the outside and overseas buyers, who became fewer and far between, when the market dropped, these properties could not be sold.  But it seems to be changing.

Over the past year the market has gradually recovered and we have seen more movement as far as property changing hands is concerned and Hoedspruit seems to have become the destination of choice and International home loans, mortgages and banking has been a normal occurrence once again.

Hoedspruit is a lovely little town with a  friendly and caring community that attracts one time visitors to become residents.  So looking for finance contact your favourite financial wizard.

So managing your home loan and prioritise your debt

Pretoria:  South African homeowners are trying to do a better job of keeping up with their bond payments and we think this is being helped by a perception of an improving housing market and of course the constant low interest rates that are making it easier to refinance and also that loans are getting a bit easier to get.

The percentage of bond holders at least two to three months behind on their payments fell in the third quarter to 5.41 per cent, the lowest point in more than three years, credit reporting agency TransUnion in the USA stated and we in SA seem to be leaning that way as well. I look forward to Loos report and Rode reports at year end.

In the USA, the mortgage delinquency rate has not been this low since the first quarter of 2009. Still, it remains well above the 1 per cent to 2 per cent average historical range, an indication that many homeowners still are struggling to make their payments.

But, here back home in SA, the question is: have your finances turned the corner?  Well, many homeowners changed the way they prioritize their financial setup after the value of their homes crashed with the world housing crash. I wonder if this has changed yet?  I think not.

We know that people used to pay their bond first, and now they pay their cars and their credit cards and then accounts before their home loan.

Even so, some owners are benefiting from the gradual turnaround in housing this year as we see prices stabilise, interests rates remaining low and generally a better feel out there.

US home prices jumped 5 per cent in September compared with a year ago, the largest year-over-year increase since July 2006, according to data provider CoreLogic.

Generally speaking, higher prices help bring down the number of homeowners who owe more on their bonds than their homes are worth, potentially making it easier for them to lower their monthly payments by refinancing.

And interest rates remain near record lows, making it possible for more homeowners to qualify for refinancing and normal financing. The average rate on a 20-year mortgage was 8.5 per cent land has remained below 9% all year.  Awesome.

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HOLIDAY TOWN HOUSE PRICE PERFORMANCE

Are we finally seeing decent prices on holiday homes
According to FNB's John Loos

Due to the non-essential nature of a holiday home, holiday home buying has taken more of a back seat to primary residential buying during the tough financial times of recent years. Now, in 2012, after a very significant real price decline in the FNB Holiday Towns Index, some return to price stability may be being observed.

The holiday property market has had major challenges in recent years. After the 2008/9 recession South Africa’s household sector has been under significant financial pressure, and the sharp rises in municipal rates and utilities tariffs related to housing must surely have caused a good number of aspirant holiday home buyers to rethink the merits of owning a 2nd home for leisure purposes.

The FNB Estate Agent survey appears to tell such a story. Whereas back in early-2007, prior to the recession, the sample of agents surveyed estimated that 5% of home buying was for holiday home purposes, in recent years the percentage has ranged between 1% and 3% of total buying. In the 3rd quarter survey of 2012, the percentage of buyers buying for holiday home purposes was estimated at 2%, unchanged from
the previous quarter.

Therefore, our agent sample certainly doesn’t point to a strong holiday buying market, but one that is slightly better than the low of Winter of 2011 where only 1% of buying was believed to be for holiday purposes.

However, it is possible that after a major downward correction in real holiday town home values, the combination of holiday home buying being slightly up off the low point, combined with improved price realism, may have led to a move towards real price stability in holiday town markets.

For non residents buying in SA - is great now and doing money transfers to South Africa has never been easier with free money transfers.

Transfer money to SA from UK and Eurozone

• From the UK comes the news that the Bank of England backed away from stepping up its program of government bond buying on as the economy starts showing signs of growth with expected increase in  lending.
• On the EU front -  European Central Bank President Mario Draghi said that the ECB was primed to buy troubled Eurozone bonds when conditions were right and that this had already calmed financial market tension - hopefully this remains true.
• Still in the EU - The Euro had gained strength because it seems the ECB were to progress with financial stimulus and calm the nerves of investors. Remember there was no rate cuts or monetary easing, the ECB president said he was “Primed to buy troubled Euro bonds when conditions were right.” The fact he mentioned this has helped the Euro maintain its gains across the board. 

So time to use your Euros or UK pounds and invest in SA  so transfer money to SA.

Interest rate and tips for your home loan!

“An interest rate cut should have some mildly positive impact on the property and home loans business.”

well that is true to some extent but you cannot just rely on this.

So some simple but sound tips for householders and the man in the street:

STAY WITHIN YOUR BUYING MEANS -  Although interest rates are at historical lows, home buyers should buy well within their means, in order to make provision for a significant degree of interest rate increase in future, these will come somewhere and somehow.

Watch the external costs - Costs related to housing such as municipal rates and tariffs are escalating at rates significantly higher than consumer price inflation.

While it is difficult to predict when these rapid increases will subside, given South Africa’s infrastructure funding needs, this makes it even more essential to borrow well-within one’s means, and ensure you read the meter and watch the leaks.

Peg your rate - Besides buying well within your own means so as to be able to absorb future interest rate hikes, because they will come, fixing interest rates is another way of being better prepared for this eventuality.  However your fixed rate will be quite a bit higher than prime.  So plan for this

Use it or ,lose it.

Resources: To Buy or Not to Buy. .. That is the Question?

Not all that glitters is gold, or so they say. Perhaps they’re right, since the JSE Resources index is down 7.76% so far this year. Seems strange though, since the JSE ALSI is up 11.09% over the same period. You’d probably guess that’s because the other sectors have performed phenomenally well. Well, you’d be correct, since the JSE Industrial and Financial indexes are up 23.01% and 24.28% respectively year-to-date.

So, who is to blame? One could start by pointing a big finger at Anglo. While thousands of athletes in London might be chasing Gold, I’m afraid it hasn’t done much to boost Anglo’s performance. Anglo contributes 8.2% of the JSE ALSI Top40 Index and is down a whopping 19% this year. While some might speculate the company is a bargain buy at this level, this will very much depend on the prices of the commodities it sells.

The key influence for hard commodities in the short term is the critical support levels of the Euro. The Euro must hold! Policy responses by central banks, predominantly in the form of lowering interest rates, will be the main driver over the medium term. Although commodities are heavily oversold, they may have hit bottom in Euro terms, and that includes Gold.

If Nedbank Capital is to be believed, the JSE ALSI will be trading at a forecast 11.5 times earnings over the next year. This is below the 12.8 times average since the formation of the new South Africa. Financials seem to still hold some value, trading below their averages, while Industrials are slightly higher than their averages. SA Listed Property Index is up 29.97% this year and remains over-valued, just as it has been by skeptics over the past decade.

All in all, the world seems more positive following announcements last week from the European central bank. Perhaps a good time to consider getting some of the action as the market shifts into 2nd gear.

General Update – Interest rate cut...
If you don’t know by now, the repo rate was cut by another 50 basis points. This takes us to the lowest prime lending rate since 1973. This provides some small relief for the average consumer, who statistics show is highly indebted, with a debt-to-disposable income at 74.7%. It seems the average South African can use all the help they can get, since the cost of a basic food basket has increased by an average of 16% year-on-year for the last 5 years.

It seems that even the smallest amount of equity (shares) in your portfolio may now be required to beat inflation over the long term. Not good news for those in a risk adverse position.
Statement of the Month – “Teenagers are people who express a burning desire to be different by dressing exactly alike.”

Food for Thought – Cameron Van Den Burgh’s Olympic Gold is ironically, barely gold at all: in fact, it’s 92.5 per cent silver, with just one per cent gold and the rest copper. Basic Value – around R5,200.

The Tea Break


David te Brake
Pioneer Financial Planning
011-880-4710
davidt@pioneer.co.za

Richter & Associates Architects (STAY AWAY)

It is very seldom that I need to write BLOG posts of this nature, in fact the last time we wrote any warning about any companies was during the phase of all those cheating and stealing bond originators who were charging clients rediculous fees for bond applications. RUDCO - despicable company...

Recently I have had a personal experience with an architectural firm based in Pretoria, South Africa called Richter & Associates Architects (http://www.r-aa.co.za/) - they don't deserve this backlink...

Although I admit myself having been short sighted by signing a contract and not stipulating certain guidelines that we had discussed in an initial meeting, being a man of my word, I kind of took them to be men of their words....Oops did I say men?

BOY WAS I WRONG!

I will not mention the peoples name that I dealt with but, Richter and Associates architects are not people of their word and they rip people off of their money.

1. R200 000 architectural fee's for plans that were drawn up before we even met them (i could've downloaded these off the net)
2. They never listened a single request or requirements that we had (gave them photo's and pictured of big glass doors opening up onto the wooden deck - They created Romeo and Juliet balcony's with a grass deck)
3. Every time we met them, they came back with the plans that they wanted and the design and look and feel that they wanted and not what US the paying CUSTOMER was looking for!!!
4. Never did they stick to their word or what they promised they would do for us (Except when it came to paying)

When we finally decided we'd had enough and put up a stinker from here to kingdom come, Richter and Associates architects all of sudden dropped their fee's by R90 000.... WHICH COMPANY do you know can drop their fee's by 50% without blinking!!!!

So this BLOG post is to say to people that are thinking of building and designing their dream home:
1. STAY AWAY Richter & Associates Architects
2. Always make sure that when you sign the contract that you stipulate EVERYTHING in terms of your requirements on that contract
3. If you're doing a building bond cause you think you can include ALL the fee's in the building bond (including the architects) MAKE SURE that you stipulate that you will pay a deposit but the remainder of the fee's will only be paid upon successful acceptance of the building bond application with the banks.

"If you don't do this" - they will ask for their fee's upfront!!!!

How do I get my Property website to the top of Google - Part 2 Google Place leaves us

Google Places Is Over, Company Makes Google+ The Center Of Gravity For Local Search - so speak to your SEO company now contact trafficfundi.com

remember all of us thought that if we used Google Places to show where our business is this would work 100% - BUT Google Places pages have been entirely replaced by new Google+ Local pages. As of this morning roughly 80 million Google Place pages worldwide have been automatically converted into 80 million Google+ Local pages, according to Google’s Marissa Mayer. It’s a dramatic change (for the better) though it will undoubtedly disorient some users and business owners ... see full story

Greek Exit from EU mmmmm - has the race been run!!!

Political leaders in Greece have failed to form a coalition government signalling fresh elections next month. Just over a week ago an inconclusive general election saw voters reject the established political parties in favour of anti-austerity movements on both sides of the political spectrum - so has the Greek race been run. 


Is it not time to send your money to South Africa.
Exit polls suggest that the leftwing SYRIZA party led by Alexis Tsipras, who were the surprise runners-up on 6 May, will claim victory comprehensively in the next set of elections.


Anti-austerity Tsipras has vowed to renege on Greece's austerity agreement: "The popular verdict clearly renders the bailout deal null." His aggressive stance on the matter has caused many economic analysts to accept that Greece's Eurozone membership is riding on its last legs.


The bottom line is that a victory for Tsipras greatly increases the chance of a Greek exit.
And a Greek exit has huge implications for the Eurozone.


The tenuous situation in Greece has already caused chaos within financial markets; stocks have plummeted, bank deposits have fallen sharply, and the Euro has declined to its lowest level in three-and-a-half years.


But the economic ramifications of a Greek exit are far more serious.


If Greece defaults on its debt obligations and is subsequently ejected from the currency bloc then it will face numerous challenges to keep the country afloat. Greek currency will devalue, so send your money to SA,  inflation will soar, banks will collapse, businesses will become bankrupt, and the economy will contract sharply.


In terms of currency the most likely scenario is that all Greek Euros (distinguishable by the serial number) will be converted into new Drachmas with an effective exchange rate of 1:1 against the Euro. Whilst the Central Bank prints new banknotes in preparation for the changeover, Greek Euro banknotes will be stamped and these will be used as temporary currency, leaving unstamped foreign Euro notes no longer accepted as legal tender, so get rid of them and send your money to SA. In a few months time when the new Drachmas are released, all old banknotes will be withdrawn and demonetized.


The initial 1:1 exchange rate is not expected to hold up in the currency exchange market, and the new Drachma is widely predicted to experience rapid devaluation as investors price it in line with the dreadful Greek economy. This scenario could potentially cause huge losses for anybody with investments or assets in Greece. The Greek government will most likely employ capital controls to prevent large masses of money from leaving the country as people look to gain an economic advantage.


Over the past week €700 million has been withdrawn from Greek banks as many investors are looking to transfer funds out of Greece to avoid the risk of currency devaluation on their asset values if a Greek exit does materialise.

How do I get my Property website to the top of Google - Part 1

I am sure you have asked yourself the question over and over and over.  How come my property website does not appear first in Google when people search for property and homes?  Have I not the best property deals available?  Do I not offer the best commissions and services?


I understand that Google had over 2.5 Billion page views per day at beginning of 2012 and that 67% of Internet users have gone online to search for a product that was advertised offline - which often suits my expensive billboards I place in my area.  I read that 89% of consumers research products online which includes properties, distressed sales, properties in possession and all kinds of property deals, and yet 63% purchase offline yet more frequently online sales in the property industry is being made.


YouTube is now averaging 2 Billion videos views per day globally and I have tried to make my own videos and get them "up there" and even better, there are 5 billion mobile users worldwide.


OK, so I have Facebook but all my friends are just that friends, and I want them to buy properties from me and I even have a twitter account and a LinkedIn account and then in July2012 Google+ launched, a new social network that no one apparently wanted and guess what? It reached 25 million users in less than 30 days. 


Our 2012 planning therefore has include a plan for all clients on Facebook, Twitter, LinkedIn & Google+, as well as other emerging social networks as needed but I am still totally concerned - How do I get the buyers to notice me and come to my property website? 


the truth my friend is that: Social media marketing, Search Engine Optimization (SEO) and Paid search (Google and Facebook Advertising) is a serious marathon, and not a 100 m race!


So in part 2 I look forward to talking about how you the property person with a super property website can start getting your business to the top of Google, get the leads you want; convert these leads to clients and start managing your budget so that you can get the bang for your buck!


Please feel free to add comments, email me, add your thoughts, questions and each and everyone will be answered and added to our free getting to the top of Google conversation.


So if you want to start - get a free website audit!

Access bonds, flexi option, money available from a home loan

So what is the reasoning behind the banks such as FNB and ABSA, and Standard bank and Nedbank offering access bonds and what do they do for us.

The reasoning is that when allowing a customer to increase their home loan balance to the original bond amount without going through a new credit assessment the banks are not acting as  responsible lenders - a real no no for any lender

So, by only allowing access to funds that have been prepaid, the bank then assists, you the customer in ensuring that the home loan is paid off over the term of the bond as set out originally, without placing any additional financial strain on you the customer.  trust me, if you are under strain you will complain.

Should the customer require more than their prepaid amount available, a credit assessment will be done as normal to assess the affordability, which will ensure that the customer can afford the additional credit they want. This in turn reduces the risk of the customer going into arrears in the event they start taking financial strain.

So what are the rules - well these vary from bank to bank but generally they are and include but are not limited to: The customer must have a transactional account at the same bank as the access account.  The linked account must be in the same name as that of the bond holder and where the bond is in joint names, in the name of one of the bond holders. Home loan repayments must be by debit order or salary stop order.  Customer should not be under Special Repayment Arrangement or debt review. Insurance cover must be up and running. No vacant land bonds. No foreign nationals and non residents.

     Call a bond originator today and they can immediately send you details for all banks at once.

UAE Mortgages - get your UAE homeloan

40% of the properties in the UAE in the last quarter of 2011 had mortgages - that equates to 960 home loans.

The banks are lending again and we can assist you with this home loan today just send us your enquiry.

Average Rates have settled between 5% and 6% - and the criteria is still fairly steep and credit analysis remains stringent.

Aiming for the Prize

Did you know that you can plan and work out as much of a plan and method as you wish, yet chance will have the last laugh?  If you think you have the right formula to win that coveted prize, win at roulette or poker, Lady Luck is either going to be smiling down on you or she is not.

Do we get rich or do we get bankrupt? Do we arrive home safely or have an accident? We all like to believe that we have a measure of control over our lives but we forget that there is a more powerful force pulling the strings, and that is Lady Luck.

An auspicious winner at any casino is the casino’s best advertisement, and if you want to throw a 5 or 6 when rolling the dice, you are more than likely going to be throwing the dice twice as hard than if you only want a number one or a number 2, doing this quite subconsciously.

Many individuals have tried finding a pattern in the nu8mbers when playing the lotto, but few actually win the big prize or any prize at all, for that matter.

It is all a question of luck, and the more you try the greater your chances are, really. Everything seems to be a numbers game in life, so if you have a prize that you simply covet, best play as often as you can so that you increase your chances.

What are my costs when getting a home loan?

So the real questions are:  what does it cost to apply for a home loan.

Whether you use a mortgage consultant, or as we call it a bond originator, or apply directly from a bank consultant at a branch, or whether you apply online to a bank - the feeling is that surely there must be different charges related to each method.s

At one stage a few years back, this was true, however, bond originators charge the client nothing as they are paid by the bank for a successfully transferred and registered home loan.

The same way a bank pays there internal consultants a salary - all these costs are part of the cost to company for the bank when they prepare their product offering and has no financial implication on you the client.

The mortgage originators charge nothing as they are paid by the banks, exactly the same way a bank pays for the salary of an internal bank consultant, so the bank costing are automatic in all of their products whether it is home loans, personal loans, car finance, opening an account etc.

In fact using an external source actually decreases the cost for the banks as they (the originators) carry their own overheads monthly, whereas internal staff are a larger cost to company for the banks.

So when you apply for a home loan what do you get charged for:

1. Initiation fee - ranges per bank but approx R 5,000.00 and more for juristic person

2. Monthly service fees ranging up to R 160.00 a month approximately depending on your deal

3. Cash deposit service fees if you deposit cash

4. Early termination fees if you cancel your home loan early

5. Then you have transfer and registration fees on your property and mortgage that could range up to 7% of the purchase price in total.

6.  there may be an insurance fee for householders and home owners insurance

So with all these costs you can always ask the experts for advice.

But be aware that these costs are above your monthly mortgage cost.

Levies - do not be misled at all

This is not just one large unwanted expense that owners are oblige to pay and unique to sectional title units and also not part of your home loan.
Full title owners and share block owners have the same obligations - that's right.

These are the kind of costs included in levies:

Water and electricity, refuse removal, gardening service, homeowner insurance, security systems, plumbing roof, painting, swimming pool, gym, cleaning materials and a management fee cost and all of this information is available from your body corporate.

Capital gains tax - how to calculate when I sell my property.

Let’s face it…government is now targeting the so-called “wealthy” amongst us! A major focus in the 2012 budget speech was the switch from taxing companies who declare dividends (thereby encouraging companies not to declare dividends), to the shareholders who will now get taxed on the receipt of dividends. Another almost “under the radar” focus was the increase in capital gains tax! or CGT as we know it.

From a financial planning perspective, now is a good time to look into the way in which capital gains tax was calculated in 2011 and compare that to how it will be calculated from March 2012 onwards.

But let’s quickly summarise how capital gains tax is calculated. In next week’s article we can discuss how it was calculated in 2011, and the week thereafter, how it’s going to be calculated from March 2012.

So here’s how capital gains tax works…

• At the end of each tax year (February) we all have to submit an income tax return (If we work that is!).
• At the same time we need to include any taxable capital gain as income on that income tax return.
• Your total capital gain for the year is off set against any capital losses in that year.
• The net gain – or taxable capital gain – is included as income in that year.
• Unfortunately net losses cannot be deducted from income. Losses get carried over from one year to the next and are used to offset any future capital gains

And here’s how capital gains tax is calculated…

• CGT is triggered when you dispose of a capital asset. ‘Disposal’ generally means the sale of an asset, but it also includes things like death.
• When you dispose of asset, you need to determine the proceeds. The proceeds would normally be the selling price.
• Now you would need to determine the base cost of the asset. Without getting too technical, this would usually be the price you paid for the asset.
• Deduct the base cost from the selling price, and it would give you either a gain or loss.
• From this gain or loss you would need to deduct all exclusions and rollovers. If a gain is ‘excluded’ then there is no CGT payable. A ‘rollover’ means that the gain will only be taxed in the future.
• Add up all your various gains for the year which aren’t excluded or rolled over.
• Add up all your various losses for the year which aren’t excluded.
• Now deduct all your losses for the year from all your gains for the year. If you have a net gain, subtract the annual CGT exclusion from it (R30, 000 in 2012).
• Apply the relevant inclusion rate percentage to what remains after the annual CGT exclusion has been deducted, and voilà, this amount is included in your taxable income!

Best Mortgages in France for 2012

Wizard Midrand and their international partners currently have some brilliant mortgage deals for all non residents looking to buy a bit of special land and property in France.

The biggest benefits are simply

1. super Interest rates starting at 2.09%.
2. Fixed and tracker rates available.
3. Loans from 21,500 Euros.
4. Home Loans, investment, holiday homes, owner building and equity release.
5. Up to 85% loan to value.
6. 5 to 40 year mortgage terms available.
7. max age 75 accepted.
8. No credit scoring or credit search carried out by selected lenders.

Why use us

• we have access to the widest range of mortgage products.
• English and Italian speaking mortgage advisers.
• A free pre-approval service, so you know you qualify for a particular mortgage before applying.
• Very Competitive service charges.

the best service available - we make mortgage magic contactus now for more information.

SA Rand trading in a swing

So what has happened this week. The South African Rand came under sustained selling pressure as last week moved ahead which ended up taking the GBP ZAR exchange rate all the way up to 12.2699. 


This was the pair's highest level since the middle of last month. The move represented a significant rejection of the 6-month low of 11.7624 which GBP ZAR traded down to just two weeks ago.


This movement is partly technical in nature, as speculators bought back in when it was showing signs of being over-sold following the downside move in the middle part of this month. However, there were also clear fundamental drivers behind the shift out of Rand-denominated assets over the last seven days. 


As is invariably the case with the risk-sensitive South African currency, exogenous factors, rather than domestic risk events, had the greatest bearing on the relative strength of the Rand last week. 


A survey from HSBC showed that activity in China's key manufacturing base had slowed for the fifth month on the spin, caused institutional investors to shun riskier asset classes, including the Rand. 


Meanwhile, growing concerns that the parlous state of Spain's economy might force the Iberian giant to accept a ‘Greece-style' bail-out, saw the yield on 10-year Spanish gilts rise to above 5.5%, causing a further shift into safe haven currencies by market participants.


This week's session has started on a more positive note for the Rand, as investors' confidence levels improve thanks to comments from Chancellor Angela Merkel that Germany is prepared to sign up to an agreement which will see the amount of bail-out funding made available to debt-burdened European states bolstered at the eurozone Finance Ministers' meeting in Copenhagen on Friday. Merkel's comments have caused the yields on Spanish bonds to drop, and if the eurogroup summit does indeed bring a commitment to increased funding for states such as Spain, then appetite for risk is almost certain to strengthen ahead of the currency markets' weekend close. 


The Rand will benefit from such a scenario, which would be likely to spark a renewed run at GBP ZAR's key interim floor of 11.7624 in the near-term. 


Tracking this information by using our digital marketing and SEO based company and their clients has been all based on a very serious link building campaign from qualified and recognized link sources. Thanks Trafficfundi.

Your Jewelery Gift Will Bring Joy Into Someone’s World

 It is not only about property being an investment, jewellery is as well.

You will not be disappointed taking the online jewellery route this Christmas or for any other occasion. This way you will receive the type of service you so richly deserve. And best of all, you will be able to find the perfect jewelery item for that special someone in your life. Select the ideal piece from all the well-known brands; think of it this way - you will now be able to give the gift of gifts.

If you are looking for a specific item of jewellery, it is often complicated and awkward to find what is in your mind’s eye. It is a myth if you feel that jewelery is a little too rich for your palate and your pocket; there are simply hundreds of items to choose from, and many that are quite affordable, too.

Give the gift of class and sophistication, and should you not be in a position to spend an untold fortune, you would be delighted to discover that many of the pieces are within every kind of budget.

Some of the better-known brands that can be sourced are Lanco, Pierre Cardin, Guess, Tomato, Citizen, Puma, Latan and Hallmark.

You will now be able to give someone a lovely watch and other items that and will only cost you from as little as R199 upwards.

If you would like to give that someone special a ring, earrings, bracelets or a lovely pendant, you will be spoilt for choice.

Perhaps you would love to give tanzanite, diamonds, gold, silver or pearls; there is something special for everyone this Christmas, and best of your gift will be delivered to the recipient’s door the very next day.

Your gift will simply bring that little extra cheer in someone’s life. Nothing quite beats the gift of giving. jewellery online simply makes a whole lot of good sense.

Should I rent or Should I Buy?

So as a matter of interest did you know that over a ten year period,  it is normally cheaper to buy our own business property, than to pay rent each month. The reason is quite simple : Rentals generally increase each year, whereas a bond repayment stays the same ( except for interest rate increases). 


So getting a mortgage or bond of up to 80 % for tenants that want to buy their own premises. If a tenant occupies more than 60 % of the premises they operate from, then a No Deposit, 80 % commercial property loan can be arranged.

So why not approach your clients and offer them 80% bonds on commercial and industrial properties ? Why not consider this for yourself ?

RENT versus BOND Example Property Value R 4,8 million

Year  Rent      Rent with   Bond            Difference          Difference

        In Rand  Escalation   Repayment  per Month          Per Annum

                       At  9%        In Rand

2012 54,500    59,405      63,450             - 8,950                  -107,400

2013 59,405    64,751      63,450             - 4,045                  - 48,540

2014 64,751    70,579      63,450              1,301                     15,612        

2015 70,579    76,931      63,450              7,129                     85,548

2016 76,931    83,855      63,450             13,481                  161,772

2017 83,855    91,402      63,450             20,405                  244,860

2018 91,402    99,628      63,450             27,952                  335,424

2019 99,628    108,595    63,450             36,178                  434,136

2020 108,595  118,368     63,450            45,145                   541,740

Rental Total = R 9,115,752        Bond  Total = R 7,614,000                 Saving: R1,501,752

In addition to the saving in rent, there is capital growth on the building as well as the fact that the building will belong to the purchaser after 10 years.

Capital Growth on building bought at R 4,8 million, at a very conservative 3% per annum growth rate, will give a value of R6,450,798 after 10 years and then there is no rent to pay from year 11 onwards !!

The owner of a self tenanted building, bought at R 4,8 million could be R 7 952 550 better off in 10 years time, if they buy their own building as opposed to renting.  

Interesting!

Home loans for the self employed!

Self employed home loans

The one sector that is grappling to come to terms with the tighter lending criteria policies adopted by the banks is the self employed.  It seems those who work for  companies are able to get loans while those who pay the salaries are not. Although this is illogical, the banks say the consumers in this sector are regarded as a higher risk. Self-employed applicants tend to be viewed as a higher risk than employed applicants, due to the perceived instability in income of these individuals, particularly in these challenging economic times. It is relatively straight forward to confirm the monthly earnings of salaried applicants; the same can't be said for those who are self-employed.

According to the banks self employed consumers are generally more exposed to negative market conditions and this may have a high impact on the sustainability of their earning ability. Recently they have seen an increased level of default in this customer segment. This has led the banks to mitigate this risk through appropriate application selection criteria.

Advice to the self employed consumers is that though the banks are now stricter than before, they are still lending.

Important things to note when making an application:

Credit Record - This is where most people fall short with their mortgage applications. Before approaching your bank for a mortgage loan always check out your credit profile before applying. You can do this at the major Credit Bureaus, ITC Transunion and Experian – they may charge you for the credit report, but it is well worth the expense. Where a creditor has obtained a default / judgment against your name you will have to pay the debt in full and contact ITC for the rescission of the default / judgment. Slow payments also have a negative impact on your credit scoring. Always pay you accounts on time or before the due date to avoid this. Second thing is affordability; speak to your bank or a bond originator to check how much you qualify for. When you do the affordability calculation it is important to be truthful about your income as this affects your application. 

Lastly but most importantly; make sure you have all the relevant documents required and do not cut corners because you will be declined. Depending on the bank, they require 2 to 3 years audited financials, 6 to 12 months bank statements (business and personal and stamped for authenticity), signed Assets and liabilities, signed income and expenditure, signed letter of income from the auditors, company docs, and projected cash flows. I would say that even though the banks are strict company's such as Global Fundi will assist you or help you find a bond originator who cares. There is still hope even under these circumstances. 

Lindy Z.

Take from the rich and give to the poor

Thanks David te Brake

PioneerFinancial Planning (Pty) Ltd

Bush Property in private Camp in Limpopo

Hoedspuit property for sale

An enchanting property in a private camp situated near Kruger Park and close to the town of Hoedspruit.


3 Bedrooms, 3 Bathrooms

 PRICE: R3.3 Million

Secluded position for a Private Camp on 1 HA in a 5000 HA Private Game Reserve. Stunning view of Olifants River, bushveld and distant Drakensburg Mountains. Excellent game inventory including Rhino, Leopard, Hippo. Highly recommended property of excellent quality, and finishes. Wonderfully peaceful ambience for real bush enjoyment, and entertainment.

RE/MAX Wildlife Properties Hoedspruit contact Annie or Gareth

We have seen it and think it rocks and that's why we recommend this place - the property watchdogs and the investing in south African property bunch.