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