Often a home buyer who requires approval for a home loan to purchase a property will fail to secure the deal as ”the property was sold to a cash buyer”. In current times when up to 50 % of home loans are declined or not approved for the applied amount, sellers are more willing to sell a property, often at a slightly reduced price, to a cash buyer, rather than to a buyer who requires a home loan approval.
Since we introduced the concept of Rent2buy Finance late in 2017, we can now empower any purchaser in the price range of between R400 000 – R1,8 million with the same buying power as a cash buyer, says Meyer de Waal, who fine-tuned and expanded the Rent2buy concept that he launched 11 years ago, by introducing “finance assistance” to the Rent2buy product. The pilot project was launched for properties in the abovementioned price range and for properties that are situated in Gauteng and Cape Town area and surrounds.
The biggest drawback of the traditional Rent2buy concept was the shortage of “Rent2buy stock” says De Waal, as we had to find a seller that was prepared to wait for 12 – 24 months for a buyer to get his “financial ducks” in a row, to apply for a home loan at the end of the Rent2buy term.
Rent2buy Finance now resolved the shortage in “available stock” completely as the prequalified Rent2buy Buyer can now search for any property within his pre-approved price range and within the approved demographical area to buy.
Once the dream home is identified, the Rent2buy Finance company will then buy the property for the Rent2buy buyer on a cash basis. This is an enormous boost for property sellers as well, as the seller will not have to wait the usual 21 – 30 days for the home loan of a purchaser to be approved and in effect sterilizing the property from any other potential offers during the home loan application period.
Home Loan declined?
Meyer de Waal
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