Fast forward your property transfer
Buying a house is a big decision, one in which the buyer will have invested numerous hours of research, planning and careful consideration. It makes sense then that a buyer would want their property transfer to be finalised as quickly as possible. But while property transfers are of nature a time-consuming process, there are steps buyers can take to make sure the process runs as smoothly as possible. Step 1 – Determine what you can afford Before you start typing your first Google search as you begin browsing the For Sale signs on the net, you should have a clear idea of what they can afford. Determining what you can afford will take careful budgeting and planning, an area where the assistance of a financial consultant will not go amiss. Step 2 – Save for the deposit Once you have a clear sense of what your budget will allow, you can start saving up for the deposit. With the necessary guidance, you will be able to estimate how big a deposit you will be able to save ahead of the time, something that will lower the mortgage amount you need to apply for. This step can be taken far in advance, however, and will benefit you greatly once you do decide to invest in your own property. Step 3 – Assess your credit and get pre-approval Another step that should be taken beforehand, is to analyse your credit record and get pre-approval for a home loan. This will allow you to plan more efficiently by knowing how great a deposit you will have to save up by knowing how great a home loan you can qualify for. Through pre-approval, you remove any unwanted surprises that may have awaited you otherwise. Step 4 – Keep the necessary documentation ready This may feel like skipping ahead, but once you’ve found the perfect home and want to apply for a home loan, you will need to submit a number of documents, including documents you can prepare beforehand, such as copies of your ID and marriage certificate/antenuptial contract (if married). Having these documents ready ahead of time saves you valuable time when you’ve found your dream home. Step 5 – Find a real estate agent Real estate agents can offer you insight into an industry and market that requires all the know-how you can muster. By obtaining the assistance of a trusted real estate agent, buyers are able to minimise their costs and efforts in the property search, while also improving their chances of navigating the legislative processes that come with real estate purchases. Step 6 – Find your ideal home By ensuring that steps 1 to 5 are all taken care of, everything else is smooth sailing, where you can sit back and enjoy the ride without having to worry about the hiccups that could have come up along the way. Limit the time your property transfer will take, step by step. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
The most reliable investment in the market
Buying real estate is more than finding the right home or location for your business – owning property is an investment that holds more benefits than you might know. Income Predictability While interest rates may alter mortgage repayments at first, real estate offers a somewhat constant financial investment. Once home loans are repaid in full, real estate offers the owner a constant income that does not fluctuate with the market, an income that can increase with inflation. Of all the investment types, real estate is the safest from external influence. Increasing Value Property appreciates in value over time. Thanks to South Africa’s reliable climate, real estate investments rarely depreciate due to natural causes, so long as the property is well looked after by its tenants and owner. Appreciation levels have increased at 6% per year, on average, since 1968, meaning your investment will grow no matter what. Improve Your Investment Where other investments rely on the financial market, the greater economy and an organisation’s performance to increase their value, property value can be greatly improved by improving the actual property. With a little elbow grease and dedicated planning, you can increase the value of your investment yourself. Retirement Ready A great benefit of owning property is that it is there when you need it the most. While the initial burden of home loan down-payments on cashflow can be rather strenuous, the weight lessens considerably over the years as the principal reduction increases. This means that your cashflow will increase as you near retirement, allowing you to invest your money more appropriately. Up Your Equity While you pay off your home loan, you are also increasing your equity as your property counts as an asset in your net worth. Through increased equity you will be able to gain more leverage in financial situations, when obtaining a loan, for example, and you will be able to grow your wealth more steadily as well. Portfolio Diversification Real estate investment holds less risk than other major class investments, allowing you to create a diversified and safer investment portfolio. Through a diversified investment portfolio, you ensure that your investments are not all influenced by the same external factors, such as a fall in share value (as has been seen during the COVID-19 pandemic). When you start looking at investment options, it may be a wise decision to consider including real estate in your portfolio early on. Remember to reign in the assistance of the experts to help you find the perfect property to invest in. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Tips for investing in property for retirement
Have you ever wondered if real estate is a sound investment? Well, it certainly can be! There are people out there who have invested in real estate and created a very comfortable lifestyle for themselves. That being said, there are also people out there who have lost everything due to bad real estate investments. When it comes to investing in real estate, especially for retirement purposes, it takes quite a bit of knowledge, skill, intuition and guts. Here are some tips to consider when it comes to investing in property for retirement income: Make sure to increase your real estate knowledge It goes without saying that to be good at anything, you need to know what you are doing. There are many seminars that you can attend that focus on how to invest in real estate. You can also read books on the matter and with the internet, all this information is readily available to you. Make sure to polish your skills There are many ways to invest in real estate. You can purchase a home or piece of land that you can flip, or a home that you can remodel and sell at a higher price. Otherwise, if you are looking to generate an income that can be used for retirement, you can look for income-producing properties such as commercial office spaces, apartments or homes that can be rented out. It’s important to assess your skills before purchasing a property. For example, if you have close ties to the development plans of your area, you could have a knack for spotting pieces of land that will increase in value over time and if you know contractors, you could be able to get remodels done at a discounted price. Make sure to develop your intuition Have you ever heard the real estate saying, “Location, location, location”? Well, this saying is very true. You need to have some intuition as to what areas will become popular over time, and what areas will deteriorate over time. We recommend avoiding buying property in areas that you are not familiar with. Have the guts to take the leap When it comes to investing in property, you need guts because there will be taxes to pay and there will be times where your rental properties are left unoccupied. Just because your rental property is vacant, doesn’t mean that you don’t still have a mortgage, repairs and maintenance costs to pay. That is why it is so important to choose the right property to invest in. Flipping properties will take guts too. Because the property might not sell as quickly as anticipated, that is when you need to have the guts to hang on or the guts to sell the property at a lower price. The takeaway here is that real estate can be an excellent investment and can generate a great source of income while you are enjoying your golden years. However, you must go about it in the right way. If you are planning on using real estate to build a source of retirement income, make sure to be patient and work systematically as you build a portfolio of income-producing properties. Never jump the gun, do your research and make the right decisions, this way you can enter retirement with peace of mind. This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)