Issue 9/ September 2007
LIFE AFTER THE NATIONAL CREDIT ACT
The long awaited implementation of the National Credit Act,
a further interest rate hike and the general misery associated
with a Cape Town winter have all conspired to cast a pall of
gloom over the local property industry. In Sea Point, estate
agents are pacing up and down the pavement with deeply furrowed
brows, wondering where their next sale will come from.
At The Bond Man, were basking in this relatively quiet
time, after the frenzied activity we saw between January and
June. Its given us a chance to update our systems and
prepare for the summer onslaught, which we know will be upon
us within the next few months. Indeed, there is still plenty
to be upbeat about! For one thing, Spring is here and we find
ourselves in the early stages of a buyers market.
An unexpected consequence of the National Credit Act has
been that certain clients, mainly single professionals, now
qualify for more in terms of mortgage finance than they would
have prior to the NCA. Let me explain: For decades, the banks
had to satisfy themselves that your monthly bond repayment
would not exceed one third of your income. This rule was applied
rigidly across the board, on the old-fashioned premise that
Mr Average had two and a half kids, a stay-at-home wife and
the attendant financial commitments that this cosy family
unit involved. The assumption was that nobody could safely
devote more than one third of their income to bond repayments
and this prejudiced those of us who didnt fit snugly
into the neat little boxes devised by the banks actuaries.
The reality, of course, is that many people can comfortably
afford to devote well over a third of their income to bond
repayments and this reality is acknowledged by the NCA. Although
certain banks are still stuck in the one third repayment-to-income
time warp, others require only that we show them that our
clients have sufficient surplus income, after normal monthly
expenses, to meet their bond commitments.
The Bond Man welcomes
Boris Greitschus into the business for a 9-week
Boris is a German student from the University of Hamburg,
where he is majoring in Banking and Economics. He brings
a fresh perspective to the business and I am grateful
to be benefiting from his bright, analytical mind.
CONNIE JOHNS PROPERTIES
The Bond Man is delighted to be associated with the launch
of Connie Johns Properties.
Anyone who has had dealings with Connie will know that she is
a consummate property professional. She has been a friend and
colleague for more than 10 years and I wish her every success
in her new business.
The sale of houses in the City Bowl has always been Connies
forté, and she is now free to sell sectional title properties
THE BOND MAN SHOWCASES TALENTED SCULPTOR'S WORK
Clients who visit The Bond Mans office will be forgiven
for thinking theyve stepped into an art gallery! I am
thrilled to showcase the stunning work of Mambakwedza Mutasa,
a talented Zimbabwean sculptor, among my own collection.
Contact Mambakwedza 076 177 6020 or firstname.lastname@example.org
The Bond Man
Accommodation Shop is situated around the corner
from The Bond Man, in St Johns Road, Sea Point.
Check out their website at www.accommodationshop.co.za
or contact Annie Strickland on Tel (021)439-1234 or e-mail
her at email@example.com
for all your accommodation/letting requirements.
At last! Property investment in the UK made easy
Thinking of investing in the UK property market but dont
know where to start? It can be a bewildering experience
for South Africans who wish to diversify their property
portfolios. Through our association with Omega Financial
Services, were now able introduce South African
clients to a buyers agent, who will help you to
acquire residential and investment properties throughout
the UK and guide you through every step of the process.
Until now, South African clients have had to put down
a deposit of up to 35% in order to buy property in the
UK. Find out more about the Deferred Completion Programme,
which allows buy-to-let customers to put down a small
deposit and defer the payment of the remainder over a
number of years.
For more information, contact Kevin Jones firstname.lastname@example.org
Tel: 0044 (0)845 230 2100
Tel: 0027 (0)82 453 7274
Telephone: +27 (0)21 433 1060
Fax: +27 (0)21 433 1062
Mobile: +27 (0) 82 453 7374
204 Main Road, Sea Point