08/06/2021
Rent to Buy or Instalment Sale in Sandton Morningside
Prime 2 bed 2 bath fully furnished apartment for sale in Morningside area in quite neighbourhood.
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Apartment details:
2 bed 2 bath (fully furnished) - sold as is (Furniture and fittings included). Garden apartment. Sold as an on-going investment.
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Rent-to-Buy Option available : (OTP : Offer to Purchase)
Option 1 : R 45000 fixed for 60 months. (5 yrs) : OTP - @ R 1,350,000 (with guaranteed rental income of R 13,0000 if required)
Option 2 : R 24000 fixed for 120 months. (10 yrs) : OTP - @ R 1,200,000 (with guaranteed rental income of R 13,000 if required)
Option 2 : R 20000 fixed for 180 months. (15 yrs) : OTP - @ R 1,100,000 ( with guaranteed rental income of R 12,000 if required)
Option 3 : R 18000 fixed for 240 months. (20 yrs) : OTP - @ R 1,000,000 (with guaranteed rental income of R 12,000. if required)
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Benefits of rent to buy:
-> Reduced transfer duty at time of purchase.
-> Fixed Rental Contract over lease period.
-> Utilities to be paid by tenant (electricity and sewerage)
-> Free uncapped internet.
-> Owner responsible for rates and levies during the rental period.
-> 1 month deposit secures.
-> Recommended option :
Option 2 : R 24,000 fixed for 120 months. (10 yrs) : OTP - @ R 1,200,000 (with guaranteed rental income of R 13,000 if required) - owning your property within an achievable timeframe, with very good lending rates from the bank once you decide to sign the purchase agreement.
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Transfer Duty exemptions likely to increase and allow for Zero Transfer duty over the period, prior to purchasing property through signing of the OTP.
https://www.ooba.co.za/home-loan/bond-calculator/
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Valuation of property will be way more than agreed purchase price of R 1,200,000 (hence banks should offer better lending rates) and increase affordability of the unit.
New Development prices per sqm in Morningside Area on the rise and still rising.�
Outright Purchase Option @ R 2,350,000 :
Seller guarantees a rental income of R 18,000 per month for a 1 year lease. 1 year lease begins after transfer is completed into the buyer's name. Can be used to justify affordability for bank application.