10 reasons why you should use a mortgage originator.

  1. Secure approvals: better chance of approval by submitting to multiple lenders ( ABSA, Standard Bank, Nedbank, FNB and Ithala Bank)
  2. Get the system to work for you: take advantage of the fact that each bank has different credit criteria, deposit requirements, documentation requirements, interest rates and turn – around times.
  3. Expert Positioning: prepare, motivate and package the application for the best chance of approval.
  4. Expertise: home finance experts have intimate knowledge of the various banks’ products, credit criteria, documentation requirements and interest rates.
  5. Simultaneous submission: direct interface to lenders systems allowing simultaneous submission of applications to multiple lenders.
  6. Faster approvals: dedicated personnel guide the application quickly through the bank’s approval process, actively chasing up progress.
  7. Problem escalation: dedicated senior personnel escalate any problems with applications ensuring a better chance of approval.
  8. Dedicated communication: one point of regular feedback on the application status for all lenders
  9. Pre qualification:certainty on the client’s ability to afford the property.
  10. Successful sale: originator only gets paid if the sale goes through.

For more information on Mortgage originators please contact Ute Kock at OOBA 041 393 7048.

For any information on buying, selling or renting please contact Nikki Strooh 072 245 6037

 

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Pricing Your Property Right

If you price your property too low, it may sell quickly, but you will lose out on money. If your price it too high, it may not sell at all. Your agent can help you figure out the best asking price for your home.

The Benefits of the right price

A well-priced property may generate competing offers, which will drive up the final price. Other real estate professionals will be enthusiastic about presenting your property to their buyers. Your home will sell faster because it is exposed to more qualified buyers.

Listen to the market

As part of your pricing strategy, your agent will put together a comparative market analysis, which is a good indicator of what today’s buyers are willing to pay.

  • Homes currently listed for sale represent the price sellers hope to obtain.
  • Listings that have expired are generally overpriced or have been poorly marketed.

Don’t overprice your home

Some sellers believe that if they price their home high initially, they can lower it later. Instead of making more money, this strategy could end up hurting you.

  • Early activity is Key: as soon as a home comes on the market, agents and potential buyers sit up and take notice. If it’s overpriced, interested parties will quickly lose interest. By the time the price drops, the majority of buyers are lost. When a home has been for sale for too long, buyers will be wary and may reject the property.
  • You will miss the right buyer: You may think that the interested buyers can always make an offer, but if your home is overpriced, potential buyers looking in a lower price range will never see it. And those who can afford a home at your asking price will soon recognize that they can get better value elsewhere.
  • You could run out of time: You may end up having to drop your price below market value if your home doesn’t sell initially. Price it right the first time, and you wont end up having to sell it for less than it’s worth.

For more information on buying, selling or renting, please contact Nikki Strooh on 072 245 6037.

 

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Good news for Landlords

It was bound to happen sooner or later, but the news that there is a shortage of rental property available in South Africa is proving to be good news for landlords.

A drop in new developments taking place and the clampdown in the various banks lending criteria has had an impact on the number of people investing in the property market. TPN Credit Bureau’s data indicates that tenants are staying in rental accommodation for longer periods. It was previously recorded that tenants age spiked at 27 years, when they began leaving the rental market. The current age now peaks at 31 years, which shows that tenants are finding the home ownership market more difficult to enter.

The good news for landlords and letting agents is of course that they are in a far better position to pick and choose quality tenants. Tenants on the other hand, appear to have realised that it is no longer simply a case of moving on to greener pastures and are coming to the party and paying their rent on time.

The statistics also reflect that 77% of tenants pay less than R7000 rent per month, while 11% pay less than R3000 per month and 66% of tenants pay between R3000 and R7000. The latter category remains the best performing in terms of rent collection where 89% of tenants are in good standing (73% paid on time and in full, with only 6% in the did not pay segment). The contrast is stark when compared with the worst performing bracket, where tenants in the above R25000 per month rental category achieved just 67 percent in good standing (only one in two tenants fell into the paid on time segment and 24% made a partial payment).

While this is highly encouraging, both landlords and rental agents should perform strict tenant, credit and affordability assessments and apply their credit and application process to all potential adult occupants (both spouses).

These are all undoubtedly positive signs for those considering entering the buy-to-let market. Property prices remain somewhat subdued and the interest rate is low. The situation however, is not going to remain this way forever. Demand drives property prices and give that large numbers of South Africans are itching to get their foot through the property door, prices are going to start increasing sooner rather than later.

Given all the stats and favourable reports regarding tenants, it may well be time for those who have been sitting on the fence to step forward and take advantage of the situation by investing in buy-to-let properties.

For more information on renting, buying or selling, please contact Nikki Strooh on 072 245 6037

 

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