The opportunities are very remote for a home buyer to own his or her own home, in particular if you are a first-time buyer.
50 % of home buyers are first time home buyers. If one combines this with an approval rate of only 50 % of home loans applied for and only 35 % of home loans approved for home buyers that earn less than R15 000.00, it explains why it is such a battle to own your own home.
IT STARTED IN 2013
I never realized that the home ownership initiative that was started in Khayelitsha would grow into this, says Meyer.
We as attorneys, with years of experience in the property field realized we must combine our expertize, skills and efforts and assist home buyers and share with home buyers, says Meyer de Waal a Cape Town attorney.
Our initiative started with 4 attorneys from different law firms, who collectively has more than 100 years in property experience. This initiative now expanded and more attorneys from different towns and cities are being added as they relished in the opportunity to add their expertize to expand education for home buyers.
At the launch in 2013, Western Cape MEC for Human Settlements Bongikhaya Madikizela said the Consumer Housing Education Programme will assist first-time homeowners to understand the process of buying a house. [click here to read the Media release]
He referred to the difficult task of local government in providing sufficient housing and related services particularly around the Western Cape.
Madikizela said the Western Cape currently at that time experienced inflows of thousands of people migrating into the province every month, which puts massive strain on local services.
“The Western Cape government’s main focus is to first provide basic needs such as water, sewerage and sanitation services before they can embark on a proper housing scheme for those living in shacks,” he said.
Madikizela applauded the initiative by private companies and stakeholders in the property industry to get together and develop a Consumer Property Education programme for first time home buyers as well as sharing their skills and their resources.
“Currently, no housing education exists for first time buyers or new homeowners,” he said.
Than was in 2013 and now some 4 years later attorneys are contributing their skills and expertise in this housing education and mentoring initiative.
FREE WORKSHOPS AND ONLINE
These free home ownership education courses are to focus on all aspects for a home buyer to secure his or her property and are available in workshop format for special ventures and also online.
The course outline covers aspects like, how to get started if you want to buy your own home, how do you find a subsidy made available by the Government as a first time buyer – the so called “Flisp” subsidy, how to improve one’s credit rating and affordability, how to find the right property that suits and fits your budget and affordability, how to prepare yourself for a home loan, the negotiation of the purchase transaction, the legalities of the purchase and sale agreement, the legal terms and conditions and also responsible homeownership.
Assistance is also provided through a national network of participating attorneys for property related advice. We advise that a home buyer first consults with an attorney with property experience, before he or she signs up for the largest investment ever to be made.
So far, similar courses were developed and designed for a property group with more than 11 000 tenants and also introduced to more than 3 700 employees of African Bank, as well as just over 5 700 subscribers to the My Bond Fitness Programme, says Meyer.
We have met with listed property groups to assist them as well. Property developers experience that out of every 1 000 enquiries they receive, only a few aspiring home buyers end up owning their own home. We were also invited to participate in a home ownership education initiative by the Atlantis Development Agency and trust our offering can add value says De Waal.
For more information or to join the home ownership courses contact.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)