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04/04/2019

CHANGES NEEDED TO YOUR DEED OF SALE In most Estate Agents deeds of sale it refers to the purchaser’s deposit being paid to the conveyancers and invested in a trust bank account in terms of Section 78 (2A) of the Attorneys Act. The interest accrued from this deposit would then be for the benefit of...

13/03/2019

08/03/2019

Why Millennials Are Choosing To Rent And Not Own 👇


While renting used to be considered the first step towards settling into a family home, more and more millennials are seeing it as a less of a stepping stone and more of a lifestyle choice. ‘Generation Rent’, as they are now more commonly referred to, are those millennials aged between 21 and 35 who are opting to rent rather than purchase a home.

In fact, research shows that millennials aren’t prone to adhering to the traditional view that home ownership is a means of acquiring financial equity. So why the attitude change?

We did some digging and below are five key reasons we found as to why this could be the case:

1. Delaying getting married and having kids 💍

Unlike previous generations, many millennials don’t view settling down and having kids as immediate must-haves, after finishing their studies. In fact, a large percentage are opting to delay marriage in order to figure out what they want from life before making any long-term commitments.

As a result, the traditional trajectory of securing a family home as soon as possible is less of a priority if they are not planning on getting married or having kids in the near future.


2. Securing a bond is near impossible 🤦‍♀️

Anyone who has applied for a bond knows the hoops that need to be jumped through before even being considered a potential candidate i.e. having a low amount of debt as well as a good credit score, to name a few. For millennials, student loans and the rising cost of living are realities that cannot be escaped.

Add to that the decline in the likelihood of most having access to the kind of funds needed for a deposit and it’s easy to see why many millennials are opting to rent – even if not by choice.


3. Renting is more cost-effective 💵

The cost of buying and owning a home has steadily risen over the last 10 years or so, causing a massive boom in the rental market across the globe - and not only amongst millennials. That said, when comparing the cost of renting to that of paying off a bond and other costs associated with owning a home – such as rates, insurance, utilities etc. – renting is by far the cheaper (and therefore more likely) option.

For millennials especially, having access to the money saved by renting is a far greater priority as it gives them more spending power and the ability to enjoy the kind of lifestyle that appeals to them. Furthermore, for some, renting is the only way that they can potentially afford to live in an upmarket or trending area, both of which are priorities amongst most millennials.


4. Renting offers more flexibility and freedom 🙌

Perhaps one of the hallmarks of the millennial generation is their desire for flexibility and therefore resultant hesitancy towards making long-term commitments. Millennials love the ability to “up and leave” whenever a new and exciting opportunity presents itself, and owning a home and being tied into a bond is often viewed as a major hindrance. Renting, on the other hand, offers a greater measure of flexibility and choice, and is, therefore, a lot more attractive as an option in the eyes of millennials.

Furthermore, millennials also tend to switch jobs every three to five years on average, so the ability to consider moving for work or in search of better opportunities makes renting even more appealing, as opposed to being locked into one particular place when owning a home.


5. The landlord will take care of it 🤝

Most millennials don’t enjoy the hassle that maintaining a home or property requires of a homeowner. It’s far better for them to place that responsibility onto someone else’s shoulders, hence the attraction to renting and having a landlord take care of most of the associated chores and costs. This allows them the freedom to do whatever they please with their free time and save on property maintenance costs.

Simply put, times have changed, and millennials or Generation Rent are opting for a lifestyle that offers them freedom, convenience, and flexibility. Renting a property clearly offers them this in spades when compared to owning a home.


View properties for rent on Private Property here - https://bit.ly/2XLnPPh

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07/02/2019

Qualify For A Home Loan ✔️


Can't afford a home loan on your own? Consider co-applying with a partner or family member to increase your chances of qualifying for a bond.


Mpho Ramatong, FNB Home Finance Division Channel Head for Housing Schemes, says lenders do offer consumers an opportunity to apply for a bond with two or more parties. These individuals would co-own the property and share the responsibility to honor monthly home loan installments.


When evaluating joint bond applications, banks adhere to normal credit and affordability assessment criteria. However, the difference is that the profiles of all the co-applicants, as well as their combined income, is taken into account.


Ramatong shares a few tips for individuals considering to co-apply:


• Good credit record – although you will be applying jointly, it is still essential for all parties involved to ensure that they maintain a good credit record to qualify and get a favorable interest rate.


• Financial discipline – all parties should be financially disciplined when honoring monthly home loan installments. A setback from one individual can potentially compromise all parties, while negatively impacting their credit records.


“Furthermore, the monthly home loan installment has to be debited from one account. Therefore, an agreement will have to be reached on whose account the funds should come from. This particular account should always have funds available on the installment date,” advises Ramatong.


• Alignment of objectives – all parties entering into the agreement must share common objectives to avoid complications. For example, if you are purchasing a family home, and one member decides to pull out of the bond agreement, a new bond application will have to be processed and a full credit assessment conducted on the application to verify affordability.


• Unforeseen risks – all parties should consider having life and disability cover to ensure that the home is protected should an unforeseen event occur.


Although this is a standard requirement for some banks, it may not be a condition for other lenders. Therefore, the onus is on the applicants to ensure there is cover in place.


“Before taking this important step, it is advisable for all potential co-applicants to seek advice from their bank or an expert to ensure that they are adequately prepared for this commitment,” concludes Ramatong.


Read more: https://bit.ly/2WKEDoU

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