Real Estate Investor Magazine South Africa Dec/January 2020 | Page 40

SERIES PART 3 INVESTOR INTELLIGENCE VIEW PART 1 Impact property investment How to measure the impact made on VIEW PART 2 property investments W done through empowering the property owner and their family with the correct training and education. Various programs through Recover Assist, our NPO and NPO Power Partners are offered to the property owner and their family. hen Property Assist approves an application from a property owner at the Solution and Investment Committee meeting, the following are always considered with regards to the impact that will be made: LASTING RESULTS: Is the solution offered able to create a lasting result in the property owner’s life? If it’s to recover financially and keep the property, will they be in a better cash-flow and net equity position than before, and able to sustain that in the future? If it is to sell, what can be done to secure the maximum proceeds to enable the property owner to start afresh and rebuild the future? FINANCIAL IMPACT: Before and after status is always reviewed and used to determine if it’s making a financial impact in the life of the property owner, and if the property-investor is protected whilst making above market related returns. See example below EMPOWERING BELIEFS: Every property owner’s financial need or assistance originates from certain actions. Avoiding these in future will make impact and can be SOCIAL IMPACT: It is the belief of the organisation that they need not assist the property owner with his/her property and financial requirements if the reasons why they found themselves there are not valid and a social impact is not made. IMPACT REPORT: When the transaction is completed, the Property Investor will receive an impact report illustrating the social, financial and other impacts made through their investment. A testimonial from the property owner (apart from the audited Investor ROI report) is also provided. Make impact now as an impact property investor: Visit the Property Assist website: www.propertyassist. co.za and register with Wealth Assist in four easy steps. Start making your first measurable impact property investment now. SOURCE Property Assist CURRENT STATUS 2019 Investors exposure: R1 100 000 Current Bond: R510 000 Settle all short-term unsecured debt from Maintenance: R79 000 Arrear Rates & Taxes: R59 000 Short-term Debt: R550 000 Monthly Expenses: R87 000 pm Market Value: R1 915 000 (5% p.a. +Maint.) Monthly Net Income: R56 800 pm Bank Increase Bond to R1 280 000 Nett monthly disposable income: R30 200 Monthly Expenses: R12 000 pm Bank declined assistance due to NCR Monthly Income: R56 800 pm (No increase) Potential for debt to spiral and lose or sell their Nett monthly disposable income: R17 900 home (which is their security and not necessary if Property Improved with better security assisted) Able to keep their home while keeping the family Instalment Sale to repurchase DECEMBER/JANUARY 2020 SA Real Estate Investor Magazine Credit Score improved to increase mortgage bond from 12 to 24 Months Solution provided through an investor purchasing the property with predetermined ROI with option 38 FUTURE STATUS 2021 Property Market Value: R1 650 000 intact as well being trained in financial principals 18% p.a. Predetermined ROI for property investor with exposure of 66% to market value