If you’re battling to get onto the housing ladder, applying for a home loan together with someone else can improve your chances. You do however need to be aware of the pros and cons.

At some stage in life everyone aspires to have a home of their own, but circumstances such as not earning enough income to qualify for a bond can often come in the way. Fortunately, banks do allow individuals to apply for home loans jointly to be able to realise their dreams.

Dr Simphiwe Madikizela, Head of Special Projects at First National Bank Housing Finance says a joint application can help increase your chances of qualifying as both parties’ incomes and expenses are taken into account to assess the affordability based on their disposable income.

“Before applying for a joint bond you should be aware of the advantages and disadvantages to avoid any pitfalls,” says Madikizela according to Private Property South Africa.

Pros:

• There is a high likelihood that the housing loan application will be approved if both individuals have a good credit record.
• You can afford to buy property that one partner wouldn’t necessarily afford with their salary alone.
• You could benefit from a good interest rate as affordability assessment is done on both parties.
• You are only liable for half of the bond payments and legal fees.

Cons:

• If you are not married, you will share ownership of the property with another individual once paid off.
• If there is a default, both partners’ credit records are affected.
• Should one partner want to pull out of the bond agreement, a new bond application will have to be processed and a full credit assessment conducted on the application to verify affordability.
• In addition, the home loan facility will be closed, which means you will have to pay bond registration fees for the new home loan facility.
• Upon the approval of the home loan, the bank may require both applicants to have adequate life cover that will be ceded onto the bond.

During the application process, both parties need to sign all the necessary documents such as the offer to purchase, home loan quote and legal documents, etc.

Most importantly, the monthly debit order has to come from one account. As a result, this will have to be agreed beforehand to ensure that there are always funds available to avoid defaulting on the monthly bond repayments.

“Buying a property is a big commitment and the decision to buy with someone else should not be taken lightly. The parties need to work out all the eventualities before taking ownership as shortcomings could potentially set you back financially,” concludes Madikizela.

We have been getting a lot of enquiries from readers of our news page about the stages one has to go through before buying property. While buying a home or a plot can be an emotional, time consuming, and complex process, but it is worth it. Nothing compares to owning your home in a neighbourhood that you chose. There are a few things that one can do to help make the process go as smooth as possible.

Check Your Credit – Before you visit your banker to apply for a home loan, regardless of your credit, it is a smart idea to obtain a copy of your credit report from the major credit bureaus (ITC) and review the information first. If there are errors or things that need to be addressed, it is easier to address them before you find a property, than after you have found a property and trying to close your loan with the bank. If you know there are some few blemishes on your credit, let your lender know what they are and why they are there, and why you are still a good credit risk. Banks look at your credit to determine how likely will you pay back the loan. If you have explanatory circumstances like a loss of a job or medical bills, let them know so that they understand that it is not likely to happen.

Get A Pre-Approval Before You Buy – A pre-approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a property to purchase. As long the home is valued for at least the purchase price, the loan should be granted.

Getting pre-approved also gives you an advantage over other buyers. It also makes it easier for you to negotiate on the selling price of the property, than a person who is not pre-approved.

While getting a pre-approval may sound official, it is really just getting an idea of what you can afford. It is having an approximate payment calculated.

Protect Yourself – Ask your estate agent for a copy of the documents you will be asked to sign if you decide to buy the property. Read them ahead of the time so that you understand the questions that you will be asked, the things you need to know and the decisions you will need to make.

Have Reasonable Expectations – There’s a lot of money at stake. No property is perfect, since everyone has a different taste. Understanding and remembering these statements will help diffuse the negotiation and the closing stage.

Emotions are high for buyers and sellers- the seller may have loving memories and years of sweat equity in the house. Maybe they are being relocated and don’t want to go. Understand their motivations for selling will help you appreciate their situation and predicament during these emotional times.

There is a lot of money at stake for all the parties involved. Just remember that market value (the value of the property) is the price that a willing buyer and seller can agree to. If you cannot agree on the price, ask yourself if there is something you missed? Are there comparables that support the price that they want? Are there any motivations that might factor into the price they are demanding? In the end, does it matter? What is the house worth today and what do you think you can reasonable sell it for on the amount of time you plan to spend in it? Think about the answers to those questions before you make your move.

Get an expect to inspect for you – No house is perfect – always get an inspection. It is the expect’s job to find any problems with the house that could cost you thousands to repair down the road. Some expects have a tendency to over play the importance of their role and the items that they find. Get objective opinions that you trust before making a decision on an inspective report. Likewise, if an expect says a foundation is cracked but it’s nothing to worry about- get a second opinion. Ask a contractor for an idea of how much repairs it will cost and how complicated they are.

…A vacant home is a target for criminals. Here’s how you can safeguard your asset when it is up for sale.

Listing and selling a home can be stressful at times, especially if the owner no longer lives in the property. What makes selling a vacant home so much more stressful? Well, the unfortunate reality is that a vacant property is a vulnerable target for vandals and the chance of the home being broken into increases.

Here are some tips that can be used to help protect the property during the sale process:

Notify local law enforcement – Contacting the local police station can reduce the possibility of a problem with the home. As a tax paying resident, the seller has the right to request that the local law enforcement keeps an eye on the property while it is vacant. Most police stations will be accommodating and will ensure that additional attention is paid to the property.

Speak to the neighbours – Inform the neighbours that the home is up for sale and currently vacant. If they don’t have your mobile number already, give it to them and ask that they make contact if there is anything they think requires your attention. Many neighbourhoods will have a watch or association that patrols the area, so inform them that the house is empty. Also, request that the real estate agent marketing the home checks in on it between showings.

Install a security system – If the home does not currently have a security system, install one. It will keep the home safer and will increase its value. For many prospective homebuyers, security is a determining factor in their property buying decision-making process. A security system will make the home more attractive to buyers.

Timers on lights – An added security feature are timers that turn the lights on during the evenings – this will give the appearance that someone is home while conserving energy during the day time. Ideally, there should be sufficient lighting for both the interior and exterior of the home, as a poorly lit exterior will allow criminals the comfort of not being seen by people passing by. Motion activated lighting is an ideal security feature and selling point.

Stage the home – Even though no-one is currently living in the home, it does not need to be empty. A bare home can seem less homely to would-be buyers. During the listing process, the agent will want to take photos of the home’s interior. Ideally, the photos should either be taken with the furniture still in the home before the seller moves out or with a few small choice pieces. The property will appear more homely, and it will prevent criminals who are looking online to see the property as an easy target.

Secure entrances – Securing the entrances refers to more than just locking the doors, it also means closing the windows securely and bolting the glass sliding door. Pay attention to any area in the home that could be used to gain entrance. Extra precautions could include adding deadbolts to all the doors and installing wooden or metal sticks in sliding door tracks.

Don’t leave mail and newspapers outside – Ensure that regular visits are made to the home to pick up newspapers that could have been delivered by mistake. Piles of newspapers are tell-tale signs that no-one has been home for a while. If it is not possible to pick up the newspapers regularly yourself, ask neighbours, friends and relatives to help out by stopping by the property occasionally to pick up the newspapers. Also, make sure to inform the relevant newspaper you signed for a home delivery service – this will eliminate the chance of a pile up.

Maintenance of the home’s exterior – Overgrown shrubbery and an uncut lawn are another tell-tale sign that the home is not inhabited. Even though no-one is currently living in the property, it stills needs to be regularly maintained. A well-maintained home with curb appeal is evidence that the home is often visited. Not only will maintaining the home deter trespassers, but it will also make the home more attractive to prospective buyers.

Using an experienced real estate professional from a reputable brand like www.mgilijaproperties.com will also expedite the process and ensure a quick and seamless sale.

As a homeowner, buying your home was probably one of the biggest investments you ever made. So when it comes to selling your home, you need to make sure the process runs smoothly to reap the benefits of that investment. Most homeowners hope that they can sell their homes quickly and make a decent profit, especially if they have owned the property for long enough for it to have appreciated in value. There are many reasons for selling a home including upsizing, downscaling, making a profit, job transfers or retirement. However, each of these has the same goal: to sell your home within a reasonable amount of time while ideally making a financial profit. Once you have decided that you are ready to sell, you need to take a number of factors into consideration to make sure the process is efficient and beneficial for you.

Right Price If your house is priced correctly, within the first few weeks of being on show you are more likely to attract a serious Buyer and to sell your property within a reasonable amount of time. A key factor when selling a house is its price tag. Every Seller should know what their property is worth and researching values of comparable properties can be a useful benchmark. Buyers can easily find out what other homes in their locations have sold for by checking Mgilija Properties or trusted Valuators. As the Seller, doing similar research will be a useful guideline to help you establish a fair market-related price: one which is not too high or too low.

Timing

Most homeowners hope that they can sell their homes quickly and make a decent profit, especially if they have owned the property for long enough for it to have appreciated in value. It would be ideal to be able to sell when market conditions are just right and you are able to get a good financial return, but for most Sellers it is not possible to hang on for the market to improve. Also, it’s worth keeping in mind that the market you are selling in is also the market you are buying in, which is a factor people often forget. A Seller will be more likely to sell a home with greater ease when the property is in a sought after location regardless of timing, but if this is not the case, the Seller should consider a sale during a preferred season.

Seasons

It may be easier to sell a property during the warmer months, when your home and garden look most attractive and those shopping for a home are more likely to venture out to attend show days. Based on current statistics, this is when homes listed on www.mgilijaproperties.com receive the most amount of interest from the buying public. However, throughout the year there are always Buyers, so if you have to list your home during autumn or winter, there are other ways you can create interest. Having a fire going in the fireplace adds to the warmth and ambiance on show days, while additionally displaying warm and inviting images as part of your online property listing can catch a potential Buyer’s attention.

Market

When selling, you want to take into consideration three essential market factors: 1.      The current property market – is it a Buyers market or a Sellers market? 2.      How homes for sale are doing in your area – for how long, on average, do they remain on the market? 3.      The interest rate – are the interest rates currently low or high? When the interest rate (the percentage charged for the use of money in the form of a home loan) is high, it can negatively affect the Seller after a sale, upon the purchase of a new home. If interest rates are lower, it could be a great time to trade up to a more expensive home without enduring a significant increase in your monthly financial obligations. However, the interest rate can fluctuate, and as such one should never purchase a home without looking at the affordability of Bank repayments should the interest rate rise.

While most tenants are good tenants, leaving the property they have rented in almost the same state in which they found it and paying their bills in full, there will always be a certain percentage who have either caused quite a bit of physical damage to the property or still owe money to the landlord.

If there is a lot of damage to the property or unpaid utility bills or rent, the landlord could be left with the “potential rental income for that year nullified”, says Michael Bauer.

He says this small percentage is the reason why many landlords will not rent to tenants who do not meet all their qualifying criteria.

If there is a lot of damage to the property or unpaid utility bills or rent, the landlord could be left with the “potential rental income for that year nullified”, says Bauer.

Possibly, he says the most important part is the choosing of the tenant, and landlords need to be very thorough in checking references – it is important to check professional references like other agencies, affordability and verify employment – which Mgilija Properties does.

If the prospective tenants meet all the qualifying criteria and have a stable income, they are more than likely to pay all of their expenses each month and will want a stable living environment. This is the type of tenant one looks for – who is not likely to be problematic or cause damage, says Bauer.

However, he says there might be a change in circumstances which could cause a tenant to want to move out before their lease is up. If this does happen, the landlord must not, under any circumstances, allow them to renege on their last month’s rental payment as the deposit might not cover damages or other unpaid bills.

Sealing the deal … Swaziland Building Society CEO Timothy Nhleko shaking hands with Swazi MTN CEO Ambrose Dlamini during the event.

Mgilija Properties Principal Musa Nhleko delivering his speech during the event.

The management of Mgilija Properties would like to thank the management at Swazi MTN for inviting our Principal during the launch of the Swazi MTN / SBS Partnership at Gigi’s – Royal Swazi Spa on August 2, 2017. We also thank the opportunity to share our testimony during the breakfast meeting on how #SwaziMTN’s Mobile Money has improved rental payments in our company. Following the launch of the landmark partnership between #SwaziMTN and the Swaziland Building Society (SBS), we would like to congratulate both companies for the integration between the financial institution and Mobile Money. It is our belief that through SBS’s ‘Bank Push-Pull’ product, which exclusively allows SBS account holders to transfer money from their bank accounts to their Mobile Money wallets and vice versa, this will go a long way in in improving the lives of many Swazi’s. The Mobile Money ATM cash out, which is a one-time-pin based transaction that allows any registered Mobile Money subscriber to initiate and withdraw at any SBS ATM regardless of their bank, will serve mutual customers better across all 47 SBS ATMs in the country.

#CreatingWealthForYouEveryWhereYouGo

…Buying a new home is very exciting. Owning a house is not only a good investment but it goes with pride of ownership.

Property investment affords the opportunity for a direct personal control and management. Apart from that, the property itself is often regarded as sufficient security for a lender. Property is less risky, and the income from property as an investment is generally less volatile than many other kinds of investments.

Before buying a house, location is of prime importance. Location is a long term fixed investment. Price can be matched, services can be extended and improved but location advantages are very difficult to assail or neutralise. Before buying a home it is important to follow the following guide.

1. Work out how much you can afford to borrow. Financial institutions are more than willing to help you regarding this. Do not be afraid to approach your bank as it is their business to borrow you money as long as you have a reliable monthly income.
2. Once you have worked out how much you can afford to borrow, look for property within that price range. Make sure you use Mgilija Properties as they are registered and professional estate agents.
3. When you have found the property you wish to buy you need to visit your bank, do not forget that you will need to pay a deposit for application. Amongst other documents, the bank normally require whatever that is:

(a) Certified copy of identity document;

(b) Salary advise slip or confirmation of income;

(c) Utility statement e.g. (electricity bill);

(d) Certified copy of marriage certificate if married;

(e) Deed of Sale signed; and

(f) Valuation fee.

These are common requirements there may be additional requirements depending on the bank. Normally the banks will borrow you the money. In total your expenditure including your loan repayments should not exceed 33% of your gross income.

4. will then need to have the property valued, the bank usually arranges this at your cost.

5. Once the mortgage has been approved the conveyancer process begins. Note that as a buyer you are liable to pay transfer and legal fees. This amount various between 8 percent to 10 percent. This process takes about three months or less. Occupation or Ownership takes place only after transfer.

www.mgilijaproperties.com

Be Careful

6 Tips for the first-time home seller

Selling property can be daunting, more so when you are doing it for the first time. There are many decisions sellers are faced with throughout the process and a litany of pitfalls to be aware of that could make the transaction long and unnecessarily laborious. There can also be a lot of uncertainty about how much it will cost you and how long it will all take.

But the process doesn’t have stressful or scary.

1. The perfect time to sell is when you’re ready to sell

Many novice sellers are unsure if they are actually ready to sell, or if it is the right time. These first-time jitters are normal. The most important thing to realise is that you’re ready to sell when you are, and that moment when you are ready is the right time. Speak to a real estate agency, even if you are unsure. Reputable agents will make themselves available to offer advice but won’t pressure you into selling.

2. Be picky when choosing your estate agency

The seller’s relationship with the agent is critical throughout the entire sale transaction. The agent is the first point of contact for the seller and should be a wellspring of advice and information on how to get the best result from the sale. This includes giving you a clear idea of what costs are involved, and when, and what documents you’ll need to provide.

Sellers should do their homework before they choose an agency, and select one that is trustworthy, communicative and responsive. Visiting the social media pages of Facebook, and reading what other clients thought of the service they offered is a good way to gauge what to expect.

3. Fix material defects, but do not spend unnecessarily

There may be things about your home that you, as the owner, may have tolerated that you worry might put off potential buyers. It could be anything from chipped, peeling paint to the quality of some of the finishings. Doing nothing about these things would be a mistake, as would doing a complete renovation without knowing whether it adds value. Sellers should rely on the wisdom of their agent to decide what on the property is a material defect and should be fixed, what additional renovation may add value, and what isn’t worth overhauling.

4. If you choose to sell, commit fully

You have to commit yourself to the process once you do decide to sell. The first month or so after the property goes on the market is the most critical. As a seller, you have to be prepared to make the property available for viewing whenever a potential buyer would like to see it – within reasonable limits, of course, because the longer a property is on the market the more the probability of sale diminishes.

5. Be your property’s ambassador

Many buyers decide to make an offer based on the personal connection they make with the property. This is why it is important for sellers to show the property themselves. As the seller, you know the property best and are probably the best positioned to offer potential buyers insights on what owning and living on the property is like and establishing that all-important emotional connection. Tell everyone you know that you’re selling and hype up your property on your social media platforms mentioning the agent in the process.

6. It’s not over until the transfer is completed

So you’ve accepted an offer to purchase, the buyer’s bond has been approved and the transaction is now with the conveyancing attorneys. But it’s not over yet. The property and all the responsibilities that come with it remain yours until the transfer is complete. This includes keeping the property insured, in good condition and ready to be handed over to the buyer on transfer day.

Transferring the property to the new owner can take 60 days or more, depending on the attorney’s capacity and expertise. Make sure you choose an experienced attorney who knows what they are doing.