HOW IT WORKS
FIRST TIME HOMEBUYERS HOW CAN MBF WORK FOR YOU?
FIRST TIME INVESTORS 7 TIPS FROM PROPERTY INVESTORS
If you buy property, you will be amazed and annoyed at the amount of times you have to provide your FICA documents, copy of ID document, proof of address, pay-slip [ not older than 3 months ] to all the parties involved- from the estate agent, mortgage originator, bank, transferring attorney and bond registration attorney.
Upload it once on your My Budget Fitness profile- and it is all take care of. TIP- stay on top of things and refresh it each 3 months on your My Bond Fitness Profile- log in and make changes anytime.
Users are prompted to categorise their regular income, regular and fixed expenses, day-to-day expenses and existing rental or bond repayments for the previous 90 days. This helps them identify and categorize specific budget expense categories.
This information is then processed to develop a Personal Money Summary, which includes details about their credit score, monthly budget, and loan pre-qualification certificate ‒ all of which can be accessed at the click of a button via an interactive, online dashboard. These services are supported by ooba and evo, a subsidiary of ooba.
“ The property buyer can then present their home loan prequalification certificate to a property seller or estate agent when they go to view a property,” says De Waal.“ Once the sale agreement is signed by all the parties, the purchaser confirms the sale and provides a copy to the MBF mortgage originator and the final application to the lending institutions are submitted,” he adds.
1 Investing in property is not a get-rich-quick type investment, it is a long-term investment, and one that you you’ ll have to see through potential ups and downs before seeing a real return on your investment.
2 Unless you are fortunate enough to have a large amount of capital to buy numerous properties at once, rather focus on one property at a time and only when you have enough surplus capital or income to then look at buying another investment property.
3 See each property that you buy as an investment, almost like another member of your family that will be with you for the long haul. The only way your investment properties can make you money is by keeping them. This means not selling, not even to raise capital to buy another property.
4 Do your homework when buying residential investment properties. Make sure you buy in the markets and areas that have the highest demand for rental properties, giving you the best rental rates. Don’ t discount flats or townhouses – they can offer some of the best returns. And remember to make this purchase with your head and not your heart – you are not going to live in this property.
5 Focus on the income that your investment property can give you. By focusing on the income, you will be able to reach break-even faster on your investment than if you were focusing on capital growth. The more income you can collect each month from rentals, the more chance there is that you will have surplus monies to buy another investment property and thereby continue to grow your property portfolio.
6 Unless you are facing some sort of financial disaster – DO NOT SELL any of your investment properties. The costs of selling a property are high and you will lose profits.
7 Remember to include your own home as part of your investment portfolio, and try to avoid the need to keep up with the Jones’ s. When your income increases, rather than looking to buy a bigger home, why not rather invest that money into another investment property and increase your future earnings?
RESOURCES
My Bond Fitness, Property Buyers Show
Visit www. reimag. co. za to set up your MBF profile and obtain a fast and accurate home loan estimate within minutes.
18 APRIL 2017 SA Real Estate Investor www. reimag. co. za