How to stand out from the crowd

BY BONNY FOURIE bronwyn.fourie@inl.co.za

Buy-to-let investors should ensure the property they are interested in has dedicated work-fromhome space.

A Qualified Buyer’s Certificate will boost your chances of securing the home of your dreams

Q: What is the difference between having pre-approval for a home loan and having a Qualified Buyer’s Certificate?

A: One thing that will help you stand out to sellers, estate agents and banks is a Qualified Buyer’s Certificate. This involves a more in-depth process than a pre-approval and is executed by financial experts. ooba Home Loans has found that potential home buyers with a Qualified Buyer’s Certificate increase their chances of being approved by over 90%.

To attain such a certificate with ooba Home Loans, an applicant’s credit score, income and expenses are examined with the help of our home loan experts. The process is similar to what the bank will look into when processing your home loan application.

Simply put, a Qualified Buyer’s Certificate is a more robust version of a pre-qualification. It is conducted by a home finance expert who evaluates your affordability in much the same way that the banks do. Documents are assessed, in-depth credit checks are performed and your financial position is determined before you receive the certificate. While pre-approval is all but expected by leading estate agents these days, a Qualified Buyer’s Certificate lends an extra dimension of reliability which really helps you stand out from the crowd. – Rhys Dyer, chief executive of ooba Home Loans

Q: I have heard there are new laws about having asbestos in your home and also having it removed? How can I check if my home has any asbestos?

A: It’s estimated that as many as one in three unrenovated properties built before 1980 will have asbestos present, so it’s critical that property owners and buyers understand the implications.

Last November, asbestos was outlawed and building owners were given 18 months to plan its removal from their properties, including homes, residential complexes, schools and all commercial and industrial buildings.

Property owners should not try to identify asbestos on their own because the easiest way to determine its presence is also the most dangerous – there is a very high risk of the exposed asbestos fibres finding their way into the air your family or employees breathe. It might be difficult to identify asbestos just by looking at it, so you need to send samples to a lab for testing and the mere act of taking samples could well release fibres.

DIY enthusiasts should also take extra care when renovating older homes. Common building products that might contain asbestos include:

• Steam pipes, geysers and furnace ducts.

• The backing on vinyl sheet flooring and adhesives used for installing floor tiles.

• Cement sheets and millboard used as insulation around wood-burning stoves.

• Door gaskets in furnaces, wood stoves and coal stoves.

• Patching and joint compounds for walls and ceilings.

• Textured paints.

• Asbestos cement roofing, shingles and siding.

• Artificial embers in gas-fired fireplaces.

Other, older household products which might contain asbestos are fireproof gloves, stove-top pads and ironing board covers. –Michaal de Jager of Michaal de Jager Ontwerp

Q: Is it a bad idea to buy an investment property now? And if I were to buy one, how could I be sure I’d be buying the right one?

A: Buy-to-let purchasing has fallen off in the past year in response to the Covid19-induced problems with defaulting tenants, rising vacancies and very low rent increases. However, for investors with a medium to long-term outlook, now is actually the best time to buy a carefully selected rental property.

Interest rates are really low and prices are negotiable, so astute investors are finding excellent opportunities to acquire properties where the rental income will cover their costs for now and they can expect both rental and capital growth in the future.

According to the FNB Property Barometer, up to 30% of property sellers in the below-R750 000 price bracket are downscaling due to financial pressure, or disposing of investment properties to improve their financial positions. And sellers in such circumstances are often more willing to negotiate than others.

We believe properties in this price category are likely to be those most in demand among tenants in the future. Investors also need to be clear on their strategy and expect medium to long-term gains from rental income and capital growth.

Other than price, the most important factors to be taken into account in a buyto-let decision include the location of the property with regard to shops and other amenities, excellent security features and, increasingly, a dedicated work-from-home space. – Gerhard Kotzé, managing director of the RealNet estate agency group

Q: I know the experts advise that landlords should try not to increase tenants’ rents at the moment but I think my landlord might want an increase. I do not want to move out of this property but also cannot really afford an increase. What can I do?

A: The South African rental market is reflecting negative growth for the first time in years, which puts tenants in a good position if they want to negotiate their rent with their landlord.

The record-low interest rates have made it possible for the repayments on a home loan to be lower than the rent one would pay on the same property. Tenants can use this information as leverage when negotiating against a rent increase.

However, a landlord does not need to forgo the increase and may choose not to renew the lease once it has expired.

It is unlikely that a tenant’s lease will be renewed if they have made late rental payments or have had neighbours or homeowners’ associations complain about their behaviour.

It is also unlikely that the lease will be renewed if they have made too many unreasonable demands, have been regularly uncooperative or have damaged the property.

On the other hand, tenants who have been reliable and easy to work with will have gained favour with the landlord. – Adrian Goslett, chief executive of Re/Max of Southern Africa