Real Estate Investor Magazine South Africa April/ May 2020 | Page 14

COVER STORY
COVID-19
the purchase transaction. The approval by the purchaser of
the outcome of the house inspection report can be made a
suspensive condition in the deed of sale. The home inspector
will have all the necessary precautions available to safely
inspect your future home.
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Do your own home loan online pre-qualification
check
There is no need to visit your personal bank and stand
in a queue to obtain your verified bank statements. Make
use of the latest online home loan prequalification software
available and obtain real-time bank statements. This software
can provide a quick result and give you an outline of the home
loan you ought to qualify for.
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Home loan application
A home loan application can usually be submitted
online via email to a mortgage originator or directly to
a financial institution. If required, the original documents can
be dispatched per courier to avoid unnecessary face-to-face
contact.
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or buy more houses at current prices. There is not going to be
a real estate crash, but there is going to be an adjustment to
values with little to no appreciation this year,” He says.
Selling & buying properties
“How do we continue buying or selling properties in light
of President Cyril Ramaphosa’s declaration of the COVID-19
pandemic as a national disaster, and how do we to continue
providing value-adding, secure and safe property services?”
asks attorney, Meyer De Waal.
A group of attorneys who specialise in assisting their
clients with the sale of the properties came up with some
innovative solutions:
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Minimize personal showings of properties for sale
With the latest Virtual Reality Tour software and services
available, a home buyer need not leave his or her own
home or office to view 5 - 10 properties they have identified
to buy. A sales agent does not need to take a home buyer to
multiple home viewings, but can provide an online link to
view all the properties available for sale. With a VRT available, a
property seller will also have less visitors to the property as the
entire property and surroundings can be viewed online.
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Property due diligence
A property that is purchased is not issued with an “AA”
or “roadworthy certificate”. No need to visit the property
personally for an inspection, get a professional to do it for
you. Arrange a home inspection report from an expert to
inspect the condition of the property before you conclude
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APRIL/MAY 2020 SA Real Estate Investor Magazine
Government FLISP subsidies for first-time buyers
An application for a FLISP subsidy usually requires one to
personally visit the offices of the Department of Human
Settlements or National Housing Finance Corporation, wait in a
long queue, obtain the necessary forms and submit application
for the FLISP subsidy. Find out before you apply for a home
loan with the FLISP subsidy calculator what subsidy you may
qualify for. Get the FLISP support service team to assist with your
application and avoid standing in queues.
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Alternative property finance
Obtain a pre-approval certificate to secure your property
with Rent2buy Finance. Rent2buy Finance is available
for properties in the price range of between R400 000 – R1,8
million and are available in areas such as Cape Town Metro,
Gauteng and Bloemfontein.
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Work out your budget
Make use of a transfer and bond cost calculator tool,
you need to budget for the attorney transfer and bond
registration costs when you purchase a property.
Taxes when selling properties
Make use of available online tools that can get you a quick
result. Calculate your own capital gains tax in advance, you
definitely want to know how much you will end up with in your
pocket after the property sale and settling the CGT.
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Signature of documents
Deeds of sale, transfer and bond registration documents

A deed of sale must be in writing and signed by both
the seller and purchaser. Most financial institutions
also require that two witnesses must attest the
document. Many times, a deed of sale is circulated via
electronic communication (email) and signed by the

parties without actually meeting one another.
Transfer documents must be signed in person by
the seller. Mortgage documents must also be signed
by the purchaser. Find out in advance the COVID-19
protocol of the transferring or bond attorneys.
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Consulting with your transferring attorney
With today’s communication technology you
do not need to come in to your attorney’s or
Rent2buy advisor’s office to consult with them regarding
your transfer. Email, telephone or video chat are all useful
tools to allow you to communicate with your professional
so that you stay up to date with your transfer.
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Shaking hands no longer seals the deal
A good handshake no longer seals the deal, your
signature is all that is needed. Professionals in the
property market are there to assist you in any way possible.
They won’t be offended if you opt for the elbow.
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Corona Virus can’t be transmitted through
online banking
Many property buyers still opt to go to their nearest
bank branch in order to make payments. Online banking is
a safe and user-friendly platform that will allow you to make
payments for your bond or transfer costs in a safe and secure
manner. Contact your personal banking institution to sign up
for their online banking services.
De Waal believes that the property industry needs to be
innovative in order to continue to function and provide the
safest and most secure interaction between property sellers
and buyers and other stakeholders.
“Already some home buyers are discouraged from buying
a property as we are facing uncertain times, and buyers
are reluctant to attend meetings or commit themselves to
financial obligations.
Investing in property still remains one of the most secure
investments you can make. If one compares a property
investment to the ‘crash’ that that the Corona Virus caused in
the Stock Exchange, it is plain to see that property is a safe
investment. The reality is that in South Africa, the supply and
delivery of housing must to continue to meet the dire need for
a roof over one’s head.
Virtual online support, services, software and products can
assist in many ways. This industry has all the necessary tools it
needs to meet this challenge head on, and continue to provide
professional services to sellers and purchasers,” says De Waal.
For update on
COVID-19 click here
SA Real Estate Investor Magazine APRIL/MAY 2020
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