Real Estate Investor Magazine South Africa September 2018 | Page 32

ACQUIRING
Get Your Bucks in A Row
Rent2buy offers a better way
T
enants battling to pay their rent and save for a deposit for
their new home can now use their rent to buy their new
home. Uniquely, this product is available for all approved
properties in Cape Town and now also in Gauteng, priced from
R400,000 to R1,8m.
Rent2buy is the brainchild of residential market innovator
and attorney, Meyer de Waal, who has worked tirelessly to in-
clude any approved property for sale in the market currently.
“Pre-approved potential buyers identify the home they wish
to purchase and we assess whether it is correctly priced,” says de
Waal. “If it ticks all the boxes, our financier purchases the proper-
ty and we enter into an instalment sale agreement with the buyer
who ‘rents’ the property for 24 months.”
Price freeze
The benefit is that the purchase price will remain the same for 2
years to give a Rent2buy buyer the time to get his or her “bucks
in a row” and credit approval resolved to apply for a normal home
loan.
Besides the great opportunity Cape Town and Gauteng buy-
ers from R400,000 to R1,8m have to own their very own home
within two years, the original purchase price remains static.
To put this into context, the City of Cape Town’s house pric-
es grew on average 11.4% year-on-year in Q3 2017, according
to FNB household and property sector strategist, John Loos.
Gauteng’s house price growth, on the other hand, is ambling
along at less than 5% growth on average.
Rental payment monitor, Payprop, reports that in Q3 2017,
landlords nationally increased their rental by 4.94% year-on-
year. Tenants in the Western Cape and Gauteng, however, saw
their rental hiked on average by 10.2% and 7.9%, respectively.
How are tenants, therefore, able to sufficiently save for a deposit
amid above-inflation rental hikes and rising house price growth,
steadily taking away their homeownership aspirations.
• Do you want to own your own home?
• Are you almost ready to buy your own home but you’re strug-
gling to obtain a home loan for the following reasons:
• Not granted a 100% home loan and need to save for a de-
posit?
• Minor problems on credit status (arrears accounts that can be
settled in a short timeframe?
• ‘Lowish’ credit score and need to build up a good/excellent
score?
“Then Rent2Buy Finance might be the solution,” says de
Waal, noting that applicants under debt review, administration,
sequestration, or those who have judgements will need to supply
a clearance certificate to prove the process is completed or almost
completed.
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SEPTEMBER/OCTOBER 2018 SA Real Estate Investor Magazine
Get pre-qualified
A Rent2buy purchaser must first be pre-qualified by the Rent-
2buy team and then will receive a certificate of affordability to go
out and find his or her own property to buy – in the City of Cape
Town or Gauteng approved areas.
Find your home
Once you find the property that you want to buy, send the infor-
mation to the Rent2buy team by email
Consider the terms and conditions
A Rent2buy quote will then be submitted for a Rent2buy buyer
to consider and accept.
Valuation
The property finance team will review the application and do
their own valuation of the property to ensure it is not overpriced.
Paperwork
You will then sign a Rent2buy agreement based on the terms and
conditions provided and accepted by yourself.
Rent2buy term
The Rent2buy purchaser will then have a 2-year period to get his
or her “bucks in a row” to apply for a home loan and acquire the
property through the Rent2buy contract. Terms and conditions
will be provided.
Applying
The Rent2buy purchaser will need a deposit of +/- 6% towards
the purchase price and costs – full terms and conditions will
be provided. This deposit is paid on signature of the Rent2buy
agreement.
ESTIMATED RENTAL PER MONTH
Qualifying buyers’ monthly rental will calculated as
follows: Your purchase price x 14.4% x 1/12.
This is what it looks like on paper:
Purchase price of R1,800,000 x 14.4% =