Buy to let - great property deal in the bush

Found this excellent Studio - bachelor pad in Hoedspruit - has a tenant presently and in an awesome environment.  Raptors Wildlife Escape - The Kruger National Park is situated only an hours' drive away. The townhouse development is situated close to Eastgate airport with daily scheduled flights to Johannesburg. Hoedspruit is only 45 minutes from the Orpen Gate of the Kruger National Park.

View 32 Raptors Wildlife Escape in a larger map

A fantastic investment this double story, 181sq m lofted looking over the magnificent raptors view wildlife estate is a steel at R 570,000.00 directly from the owners.  They will also get you a 100% mortgage as part of the deal.

Contact ownershomeloans@globalfundi.com

FNB - and buy to let news

So is buy-to-let the new way to go.

The on-going saga and lack of capital growth in the residential property market has made investment
in residential real estate so unattractive compared to the earlier part of the last years when house price growth were at much higher levels. Yields are also driven down by financially strained tenants and rising costs of maintenance, petrol, home goods etc, further stacking up an argument against investing in residential property unless you have a big daddy.

However, as more young South Africans require housing, there is a constant growth of demand for rental houses and flats. Ownership is not always possible or feasible and for some there will always be strong arguments in favor of renting instead of buying. This is aggravated further by challenges that banks face in granting credit - you better stay squeeky clean. These poor folk often have no other choice but to enter the rental market.

Should the SA reserve bank’s repo rate, and in turn the bank lending rates rise, the argument quickly tips in favor of renting rather than buying and is expected to further increase the demand for rental properties in the short term.

This rising demand for rental properties and slow growth in supply is expected to ultimately drive up yields to a point where buy-to-let property becomes a much more attractive investment. Once this excess demand pushes prices upward, investors will start earning higher returns. High returns will in turn attract more investors to participate in the rental market, buying up a larger portion of stock.

Risks of financing buy-to-let properties are not expected to change, but banks will continue to support this market with responsible lending to enable a much larger buy-to-let market tosupport the growing demand for housing in South Africa.

Buy-to-let ask your mortgage originator today.

Buy to Let in the UK - get 80% LTV

Did you know?  Buying UK Property has never been better. There are actually currently 6 lenders available with home loan products available at 80% LTV and one offering even more!

So let us assist you in your BTL (Buy to let) deal;

No limit to existing number of BTL properties Limited companies No minimum income First time BTL purchases Holiday lets Minimum valuations from £50000 Maximum loan 1000000 Fee assisted products Long term fixed rates Money transfer service anywhere in the world - save thousands Exchange Control services for South Africans. Some of these products are intermediary exclusives that can’t be accessed direct from the lender so if you would like more information please CONTACT US ONLINE

Buy-to-let, it's not dead, it's just tough!

Pre NCA people were reveling in the buy-to-let market. With home loans being dished out to South Africans at a rate of knots and affordability not even coming into the equation, people were really making alot of money in the buy-to-let market.

South Africans weren't feeling the brunt of the home loans with interest rates being at a lovely 9.5% and living costs, including fuel, bread and your daily expenses were at an all time low.

Many have made a absolute fortune from buy-to-let, but the credit crunch threatens the sector.

Buy-to-let is not dead!!! Even with the falling property prices in South Africa and constant pressure on our interest rates, the only thing that's changed, is that it's become tougher. In fact many landlords are looking chuffed saying prospects are looking bright right now, for the first time in years, because the housing market is weakening. It's become a buyers market again and that's a good thing.

The real trick to buy-to-let though is that your rental needs to cover a minimum on 85% of you home loan. Rising property prices and interest rates have made this target extremely tough to achieve but at the same time have helped increase the rental market and value thereof.

Prices are not falling quite the way we've wanted them to and the penny has still to drop with vendors, but the market is changing. We've had signs of downturns in prices before, but they haven't materialised. This time it's for real...

Keep your eye out for Buy-to-let...

Buy To Let - Rentals Going Up!

Well it's a sad state of affairs when I finally realised this morning that the first thing I wanted to do was look at my BLOG. Gone are the days where I used to drink till 4:00am, party all night and sleep all day! I have become an online nerd! AND I LOVE IT!

So good morning to you all!

After writing my article this week about Buy To Let Mortgages I realised that I'd left out the part about:

"Now that Buy To Let has become the BIG THING for property investors in South Africa, Rentals, well unfortunately, they're going up!"

So this article is for those of you that are renting.

South African tenants face major increases in rentals over the next couple of years. According to the Record newspaper, the massive movement of people from outskirts of South Africa to the city centres are forcing rental prices up. Along with this the demand for apartments and flats to be built cannot keep up with the demand for rentals themselves.

With property prices booming in SA, more and more people are starting to move towards the rental market. The problem we're have is that investors are finding building prices are just astronomical at the moment and this is slowing down development of new units. You average price to build in Sandton for instance is now around R20 000 a square metre for an apartment. According to some reports, expect rental prices to increase in the region of 10% over the next year.

It's not all doom and gloom for those of you who are in the rental market. According to Chris Green of Wizard Midrand, there's a very good option for those of you who are wanting to start investing in some property. SYNDICATES or SYNDICATIONS as some know it, is the latest craze in property investments. As a youngster who doesn't have enough money to invest in a property themselves, this is a way to get your portfolio going.

Syndications allow you to buy property with a group of people. This enables you to split the costs amongst 5 or 10 other people (maxmimum of 43 allowed), enabling you to afford that investment that always seemed out of reach. If you're interested in finding out more about this contact Wizard Midrand on +27 12 341 2223 and ask for Chris Green.

Have a super weekend all...
WizardMan

Buy To Let Mortgages - Top 10 Tips

Top Ten Tips for Buy To Let!

1. Choose the Right Property
Location, location, location...


2. Choose the Right Mortgage
Check the amount you can afford. Remember that with the National Credit Act of South Africa it's no longer 30% of your income that's taken into account on your qualification but what you can afford after your expenses have been deducted at the end of the month.


3. Work out Costs and Income
Work out how much your monthly mortgage repayments will be and whether your rental income will exceed this.

Remeber to look and see whether you can afford your mortgage repayments if the interest rate increases again (most likely to go up another 0.5% in the next 6 months). Another thing to consider is that should your tenant dissapear, can you afford to pay the mortgage costs for the next 3 months?


4. Buy To Let 'Hidden Costs'
Don't forget your bond costs. There's registration costs, transfer fees, attorney fees, Stamp Duty and posts and petties. Check out the Bond Costs tab at the top of this page.


5. Choose a Professional Rental Agent
If you choose your rental agent wisely, you may be lucky enough to find someone who, manages your tenant for you. This includes collecting rentals arranging agreements etc. This is not required as they may charge an additional monthly fee but may come in handy if your buy to let appartment is not within driving distance.


6. Ensure you have the Right Insurance
Check with your insurance broker what you need to cover you.
We offer you low premiums and a cash OUTbonus.


7. Sort out your Taxes
You have to pay income tax on any rental income you receive, although you can deduct some expenses.


8. Get a Fully Flexible Mortgage
Make sure that your mortgage originators choose the correct option for you. Buy-To-Let options are available out there.


9. View Buy To Let as a Long-Term Investment
Buy To Let is a long term return. Expect this return to peak at around 5 years in. Don't expect to make a quick profit on rental income.

10. GOLDEN RULE
If you have a extra R500 a month, throw it into your bond account. Where else are you going to get 13% interest on your money. DAILY...

WizardMan Out!