4
Have the Correct
Structures in Place If you intend to own more than one property in the future, do not buy a property in your name.
5
• Ensure you have the correct structure( a property trust or property company) in place BEFORE submitting your first OTP.
• It is possible to restructure your properties. Still, purchasing a property in the correct entity from day one is significantly more affordable.
Buy at a Discount You make your money when you buy.
• If you buy a discounted property, you make an immediate unrealised profit that you can access in the future.
• There are many reasons why property sellers have to sell a property urgently and would be willing to sell it below market value.
• These reasons include financial distress, divorce, death, downsizing or upsizing, emigration, etc.
6
Use your own
Conveyancing Attorneys The service with your attorney is always better, and the costs are significantly less.
• Always insist on using your conveyancing attorney rather than the seller’ s conveyancing attorney.
• Although it is the norm in most parts of the country to use the seller’ s conveyancers, no law says it must be so.
7
Apply for 100 % Financing The less of your money you use, the better.
• Remember, even if the bank does not give you 100 % financing, you can obtain the deposit you need to put down from other sources.
• If you get 100 % financing, you can park the additional funds in an access or flexi bond.
• This way, you already have an accessible, healthy cash reserve, and you only pay interest on the outstanding bond amount.
8
Apply at Multiple Institutions
Don’ t assume that your bank will give you the best financing. We’ ve often gotten a better deal from a different bank!
• Remember, each bank’ s strategy and risk appetite are different at different times, so apply to all the banks for financing.
• Use a bond originator to assist you with the applications. Banks compensate bond originators, so it won’ t cost you anything for
28 FEB 2022 SA Real Estate Investor Magazine