South African Homeowners

Given that the average house price in South Africa is approximately R800 000 and that most people take out a hefty bond to finance their home, home owners would be well advised to prevent  additional property-related expenses by avoiding simple oversights.

This is according to Mortgage Plus Bond Originators, who advises that consumers can safeguard themselves financially by taking note of five of the most common property-related mistakes made:

1. Shop around before securing a bond

Shopping around with multiple banks and negotiating the best deal can make a big difference to your monthly bond repayments.

A bond originator is able to assist by submitting an application simultaneously to multiple lenders, ensuring a greater chance of approval and on the best terms. Originator consultants understand the different credit criteria and requirements of each bank and are able to provide independent advice to potential home owners.

Additionally, duplication of documentation is avoided ensuring fast approvals while benefiting from a single point of contact to manage the entire process. A bond originator’s service is also at no cost to the homebuyer and without any obligation to accept a particular loan sourced.

2. Under-insuring your home and contents

If you’ve made any improvements to your property since taking out your home insurance, it will have changed the value of your home. Significant changes to your house will increase the value it should be insured for, so it’s important to keep your insurer up to date with any changes.

Also, don’t forget your contents insurance as most people often underestimate how much their belongings are worth. If you purchase new furniture or electronics, then you should review your contents policy (at least annually) to ensure that you have adequate cover.

3. Failing to take basic steps to secure your home

It’s all very good and well to have a home contents insurance policy, but if you don’t take the appropriate measures to secure your property, you may find yourself seriously out of pocket if you are burgled.

If your home fails to meet your insurer’s security requirements, then your policy will become void, even if you’ve paid premiums for years. Don’t waste your insurance premiums or, worse, face having to pay to replace stolen possessions. Read your contents policy carefully and ensure your home meets its minimum security requirements.

4. Using a sub-standard contractor

Substandard home improvements can cost SA consumers millions every year and can actually reduce the value of your home, or worse, cause expensive damage. Unfortunately, the process of sourcing a reliable builder and managing a building or renovation project can be extremely stressful, but if done incorrectly can add lasting financial stress for a homeowner.

To safeguard yourself always remember to do a thorough background check on anyone who is going to take a hammer to your home. This includes requesting to see proof of their building credentials which can include memberships such as the Master Builders South Africa (MBSA).

5. Spending on improvements that add little value to your home

Not every improvement will add value to your home. For example, new carpets costing R50 000 add very little value to your property’s overall worth. However, the right paint job can add up to 10% to your home’s value.

Your first home improvement priority should be to ensure the property is structurally sound. Roofing, windows, damp proofing and the electrics should all be in top condition and if they’re not, should be at the top of your home improvement list.

Once you’ve taken care of the structural side of things, you can move on to improving the look and feel of your home. Have a discussion with your local estate agent to get some advice about what features can add the most value to your home.

Tip: If you’ve made any improvements to your property since taking out your home insurance, it will have changed the value of your home. Significant changes to your house will increase the value it should be insured for, so it’s important to keep your insurer up to date with any changes.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Nedbank Home Loan Products facilitated through Mortgage Plus.

Nedbank home loans cater for a variety of individuals within South Africa and include four different types of home loan choices.

• Original home loan
• Buy to let home loan
• Building home loan
• Home vision home loan

Qualifying criteria includes individuals earning at least R2 500 in monthly household income and must have a clear credit record.  Property value to a minimum of R100 000 needs to be obtained prior to applying to the loan.

Individuals may furthermore repay their loan to up to 30 years with interest rates being fixed or variable. Other flexible facilities with this home loan include options to apply for a re-advance where individuals who have paid off some of their loan may apply for the same amount.

NedRevolve facility which allow individuals to withdraw the funds which they have paid in surplus on their home loan. An accelerated payment option where individuals may pay more than then minimum installment in order to speed up repayment of their home loan.

With the ever changing markets home owners with this loan option may also apply for a higher loan amount if the value of the property has increased.

Buy to let home loan

This loan is given to individuals who want to invest in a property with the aim of renting it out to other individuals.  Qualifying criteria includes individuals having to earn at least an income of R30 000.00 and should have a clear credit record. A property value with a minimum amount of R150 000 will only be considered.

Building home loan

Qualifying factors include that individuals earn at least R2 500 per month and have a clear credit record.  Individuals can only apply for this loan when a property with a minimum value of R150 000 will be build. Builders must be able to proof that they are NHBRC approved.

Home vision home loan

When the value of your property increase home owners may apply for a home vision loan.  The difference of the original loan and the new property value may be utilized for most purposes if approved.

Home owners are encouraged to apply for this loan instead of a second mortgage as costs levied are much lower. The minimum property value has to be R100 000 to apply for this loan.

To find out what percentages Nedbank will offer please contact Morne Prinsloo on 011.327.4489

All clients will be subject to a credit check and affordability in terms of the NCA (National Credit Act), and all properties will be evaluated prior to approval.

To apply for your Nedbank home loan Click Here

Mortgage Plus offers a wide range of advice on different bond options and further advice on the above. Please call us for further information on:

Complete this short form online

Call us on 011.327.4489

Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za