Purchase Your Biggest Investment Ever With A List After Hearing The 2012 Budget

Thirteen Pertinent Points for your “To Do”List When Buying Property after the 2012 SA Budget Speech

·         First things first; create a needs analysis. Do you want a lock up and go scenario, or do you have a dog and cat or a family to consider? Write this at the top of your “to do” list when investing in property in 2012.

·         Location, location, location is all-important. This will affect how much you will be able to borrow from the bank, and this will also affect how much you will pay on your monthly insurance premium. Buy the cheapest house in the best area, and you will never go wrong.

·         Once you have heard what you are in store for in 2012 after hearing the 2012 budget speech, you might want to decide how to invest your money accordingly.

·         Perhaps you would like to go ahead anyway; although it is important to know how our money is going to be spent according to Pravin Gordhan,  it is also important to get into the housing market, and now seems to be as good a time as any, whether the budget bodes well or not.

·         When you go house-hunting keep your “to do” property shopping list with you at all times so that you do not lose focus.

·         When looking at location, it is also important to take into consideration where you work, and where you spend most of your social time.

·         Fine-tune your list all the time; your ideas might change, and especially so after hearing what the SA budget has in store for us.

·         If you are a first time home buyer then it might be a good idea to take someone older and wiser with you when looking for property, as wisdom comes with age and two heads are always better than one.

·         Be on the lookout for any pitfalls; as a first time buyer you might not be aware of these.

·         Shop around at different banking institutions and find out what the interests rates are. Even better wait for the SA budget and then make this decision based on those facts.

·         The professionals will be able to assist and guide you in the right direction; bond originators are experienced and would be in a position to shop around on your behalf, taking the leg-work out of this exercise.

·         Acquaintances and friends who have bought homes recently will have a good idea how to buy a home; why not ask their advice?

·         Always look for estate agents who have got the most ”sold” boards  in the area you are interested in; THESE are the ones who know the area best, which houses will be for sale. These agents will be the most professional and successful in the area.

Your best financial indicator for borrowing money to buy a home would be the 2012 budget speech, as this will be a good barometer on how our money is going to be spent in the next twelve month period. Hopefully Pravin Gordhan will make many positive changes in SA, so that everyone can benefit.

What are the banks offering foreigners and non-residents today!

If you are a non - resident and looking for finance, mortgage or home-loan and buying a property or investing in South Africa, whats sort of financial resources is available to you today! So do you feel like a foreigner?

You will always need to transfer some money from your country to South Africa, either as  deposit or for your monthly mortgage payments, however that can be done free of transfer fees and need not be an expensive project.

So what do the lenders offer and this includes, ABSA, Nedbank, FNB and Standard Bank and even SA Homeloans.

So firstly non-resident clients living and working abroad.  50% maximum and then only from ABSA, Standard Bank and FNB.

Non-resident Clients with SA Work Permits

FNB - 50% loan Max
ABSA - 70% loan Max
Nedbank - 80% loan Max if you are a Nedbank client
Standard Bank - 90% if not a client and 100% if you are a client

However, you will need

1. To have a clear credit record and if you do not know what your status is please get a copy of your credit report today.  This will save you hours of heartbreak.

Ensure your required documents are up to date - so bank statements are less than a week old, clear to read - otherwise the banks will reject them and if you are self employed have at least 2 to 3 years audited and signed financials available.

Of course , use a bond or mortgage originator always - they know who offers what and remain objective.

MARKUS MAKES MORTGAGE MAGIC! PRIME RATE DROPS.

What an amazing day and date - the same interest rate as the 20th August 1979 - Gill Marcus you beauty. 

Marcus revealed the following before announcing her decision:

• Domestic inflation has moderated;
• Growth expected to remain low;
• Inflation to average 4.8% in 2012;
• Food prices remain benign;
• Inflation expected to be at 3.7% Q3 2010;
• CPI to average 5.1% in final quarter of 2012;
• Fears of reverse recession have diminished but risks still remain;
• Bank does not target exchange rates;
• Policy rates to remain low in developed economies;
• Rand main downside risk to inflation;
• Inflation moderated more than expected;
• Bond flows show fundamental shift;
• Growth to moderate further in H2;
• Domestic economic growth declined in Q2 in 2010, due to contraction in mining sector; growth in second half to be moderate;
• Consumers still constrained by debt;
• Household consumption may moderate; will be constrained by increased unemployment;
• Banks forecast of GDP growth has declined moderately to 2.8% in 2010;
• Impact of World Cup expenditure unclear at the moment;
• Underlying credit extension remains weak;
• Wage settlements main inflation risk and may affect employment;
• Growth to reach 3.2% in 2011;
• Low interest rate and inflation to support consumer;
• Increase productivity is needed;
• Administered prices place upside pressures on inflation outlook;
• Rand is stronger than anticipated.


So this is what it looks like thanks to Globalfundi our mortgage originators.

Should I buy, fix, sell and get RICH!!!!!!

Yesterday, I bought a PIP (Yup! a property in possession). 
Thank heavens some other sucker could not afford to pay his homeloan.
I scored, I really, really scored as I could raise some money
from my other homeloan for this house. Oh, what a bargain!

Now, I am going to do quick, fixit, with my gardner and a couple of guys off the street who walk around carrying paintbrushes and ladders with card board adverts.  They are really so cheap and desperate for work that a few more bucks will sort that out.

Then i'll sell it on Private property so that i do not need an agent and I'll save myself a fortune.

Speculation, the mothers of invention. (Sic)

So whats the reality in property!!! Or does reality exist in properties in possession!

Owning property is no doubt great.  Owing the bank money for the property is not so hot, but the truth is not all of us have hard earned cash!!

Second mortgages, even third and fourth ones to cover that little speculative property, can be great when things are good and you have rental income, but not so great when the burning hole in your pocket hurts like crazy.

A quick fixit, can also be a quick drain on cash, especially with no recourse and no guarantees.  so be careful.

Choosing the right place and area.  That is tough to answer.  Position, position, position means cost, cost, cost - You pay big time, for the big view.  So keep these thoughts close and keep your head at all times.

The key thoughts are, are there people with money.  Parents with student kinders.  Older folks needing places without stairs.???

Real estate agents actively active in the area.  Do properties move in the area.  Do the banks finance in the area.  That information is always available for you. get a great real estate agent or mortgage originator to assist you.  they will, they want your business.

Oh, yes, please do not forget, selling means you need buyers.

Selling means you need a nice place for someone who wants it with things that work.

so, let us hope that your painter with the ladder is not the owner of the PIP!!!!  mmmmmmmmmmm

be cool, be cool!!! Its still a good deal, just make sure you prepare yourself well -- ask the debt doctor he can tell you everything

NEDBANK - A GREAT Balancing Act - to get a Home Loan!!!!

Well I am impressed when I hear a  credit manager tell me what is needed to get a home loan - open policy - nice to see Nedbank .

Three pillars of strength needed folks - thats all so YOU WANT A HOME LOAN then -

RISK - You need to make the bank feel that all the risk is not only on their shoulders but also on yours.  So what do you need for this - A deposit reduces the banks risk and adds yours into the pot, so start saving.  Be a smart finance manager, so manage your accounts and VERY VERY important PAY YOUR ACCOUNTS ON TIME or in ADVANCE.  Never pay late.  Nedbank, like most banks have an internally risk rating of you as a client, so contact your Mortgage Broker and get your risk rating in advance, THEN apply for a mortgage only.

SECURITY - Well no one wants to be left hanging and neither do the banks and this is not particular for Nedbank only.  So make sure what you buy is acceptable for the banks to finance.  If a sectional title flat or apartment get the body corporate financials and make sure the body corporate is in the black (positive cash flow), not to many arrears and outstanding levies, and up to date paid insurance.  Then the bank will feel comfortable as well.  If you have just started a job, make sure you supply your job contract together with a payslip.  Its all about feeling secure. 

Ask your broker.

AFFORDABILITY  - If you want to be declined then dont justify what you can afford.  Remember 30% of your income is the MAXIMUM that the banks will allow you to spend on your home loan.  THATS IT!

DO NOT INFLATE YOUR SALARY AND INCOME! OR DEFLATE YOUR EXPENSES! If it is unrealistic the banks will automatically add an additional 25% to your expenses and once declined on affordability it is very difficult to convince credit managers otherwise.  IT IS TO PROTECT YOU afterall!!!!!!  Ask your mortgage advisor to assist you before you have a bash yourself.

Lovely, easy and A GREAT BALANCING ACT!

Why Should You Buy Now?

Yes, call me mad but NOW IS THE TIME to buy property. High inflation and high interest rates have ensured two things:

• If you buy now you will be building wealth – the value of houses tend to double every 10 years so now is a good time to get into the market. There is a lot of stock to choose from and the prices are highly negotiable ensuring the best prices. Check out http://www.myroof.co.za/ - Cut your agent costs and fees TODAY!
  
• Paying your own bond and not paying rent enables you to gain access to the wealth: in profits, when you sell the property or equity on the value for improvements. This can be used towards education or even buying a second home.


• You will also have a measure of freedom that comes from owning your own home. You can decorate as you want, add on and benefit from the enjoyment of the improvement and the growth in value of your investment.

Also you can be building equity by paying your mortgage off sooner; this can be done by paying more than the minimum instalment each month like a ready made savings plan, allowing you to pay off more capital and save thousands in interest.

I will reassure you of the steady and growing demand of buyers is SA. The growing amount of people who are keen and financially able to buy their own homes are growing thanks to broad-based black economic empowerment so there will be a continued demand to sustain the value growth that builds wealth over the next few years.

“The Mystic”
rosettap @ wizard .za .com