MDW INC appointed for the Mountainview Project in Mossel Bay

278 MOUNTAINVIEW UNITS ARE READY TO MEET THE DEMAND FOR AFFORDABLE HOUSING IN MOSSEL BAY

MDW INC Attorneys have been appointed by the Western Cape Government’s Department of Infrastructure, in partnership with the Mossel Bay Municipality, to facilitate the sales, marketing, property finance, and conveyancing processes for 278 GAP housing units for the Louis Fourie Mountainview Development in Mossel Bay.

The Mountainview Development website is designed and created by The MDW INC’s inhouse team with the aim to provide further information to interested buyers as well as educational modules for first time buyers.

Through the Mountainview website, a first-time buyer can also check online if one can qualify for a First Home Finance subsidy (previously known as FLISP) as well as property finance.

PROJECT FOR FIRST TIME HOMEOWNERS

The Mountainview project is aimed to assist and guide first time buyers to secure their own homes.

The project makes use of the First Home Finance Subsidies, combined with a home loan.

Buyers can also make use of employee assisted financial help, tap into their personal savings, unsecured loans, or make use of other financial alternatives in terms of the new-delinked subsidy programme.

SALES TEAM

Fiona Williamson Attorneys, a local attorney in Mossel Bay, will be working alongside the MDW INC Property Team to assist with the sales, marketing and the conveyancing of the units sold.

TYPES OF UNITS AVAILABLE

There are 278 units, consisting of double-story block units.

The units consist of a living area, open plan kitchen, bathroom and 2 bedrooms. The units have 45m² footprint.

PRICING

All units will be sold for the same price of R429 000.00 and includes all transfer costs, VAT and bond registration fees.

HOW TO PAY LESS FOR YOUR FIRST HOME AT MOUNTAINVIEW

20 YEAR HOME LOAN TERM

To qualify for a home loan of R429 000.00, a buyer needs to earn at least R15 500.00 per month. This monthly income required is calculated at the current interest rate of 11.75 %, if paid back over 20 years.

30 YEAR HOME LOAN TERM

If the home loan period is extended for the loan to be paid back over 30 years, then a buyer needs to earn at least R14 500.00 per month. This amount is calculated if the loan is paid back at the current interest rate of 11.75 % over 30 years.

If a First Home Finance Subsidy is applied on an income of R14 500.00 per month, then the subsidy of R91 033.00 can be deducted from the purchase price.

That leaves the buyer with a reduced home loan application of R429 000.00 – R91 033.00 = R337 967.00.

IT EVEN GETS BETTER

TO QUALIFY FOR A HOME LOAN OF R337 967.00

The good news is that to qualify for a home loan of R337 967.00, a lower income of R12 200.00 per month is required from a buyer, which is to be paid off over 20 years at an interest rate of 11.75%.

“Many more first home buyers will be able to own their own properties, by applying their First Home Finance Subsidies”,

says Verna Pugin, who will assist with the housing education for the first-time buyers as well the subsidy and home loan applications and pre-screening.

HOW TO QUALIFY FOR A FIRST HOME FINANCE SUBSIDY

The qualifying criteria for First Home Finance Subsidies are:

• One must never have owned a property before;
• Your combined household income (before deductions) must be between R3 501.00 – R22 000.00 per month (to qualify for a home loan to afford this purchase in Mossel Bay, the buyer must earn at least R12 200.00 per month);
• Must have a financial dependent, such as a spouse or a child;
• Be a South African Citizen or have a permanent residency permit; and
• Must have an approved home loan or able to apply any of the de-linked financial solutions available.

WHAT IF YOU EARN LESS THAN R12 200.00 PER MONTH?

The solution will be to combine income to qualify, says Pugin:

The income of two or more friends or relatives can be combined.

Take as example Mary, a single mother with a child who works as a security officer and earns R7 300.00 per month.

She earns too much to qualify for a free BNG house, but too little to buy a home on her own and is living in a 2 roomed shack.

With the COMBINE YOUR INCOME programme, Mary, invited her friend Sally, also a single mother that earns R8 000.00 per month to buy the property with her.

Their combined income is R15 300.00 and will enable them to qualify for a first home finance subsidy of R83 789.00.

Their combined income will qualify them for a home loan of R415 000.00, but they will only need a home loan of R345 211.00 after the First Home Finance subsidy is deducted.

A  repayment on a home loan of R345 211,00, paid off over 20 years at the current interest rate of 11.75% will be R3 741.00 per month.

As they will be responsible to pay 50% of the home loan repayment, it means that each owner will pay only R1 871,00 per month, plus rates and taxes

Mary and Sally and their children will be jointly owning and living in and sharing a house with 2 bedrooms, a kitchen, modern bathroom and open living area.

ASSISTING FIRST TIME BUYERS

Meyer de Waal, director or MDW INC Attorneys, says the following:

“We identified that more than 52% of the buyers of properties are first home buyers.

 Over the past 16 years, we developed guidelines and educational modules for buyers to help them buy their own homes.

 Buying a home is often the biggest investment one will ever make, and first-time buyers often lack the experience or knowledge how to approach the home buying process.

 We are now able to share this knowledge and information with the first-time buyers in Mossel Bay.

 First time buyers are often not certain how to apply the First Home Finance subsidies to assist them to reduce the purchase price of the home they want to buy and in such reduce the home loan that they need to qualify for.

 Unresolved issues on a credit score can also result in a decline of a home loan.

 Often a few negative entries such as a late payment or over indebtedness on a credit score profile can also prevent a buyer to obtain a home loan approval.

 Buyers who are overindebted or with a low or bad credit score will be assisted through the My Budget Fitness Programme developed by the MDW INC Team to improve their credit scores and affordability to re-apply when such improved.

 This service also includes the property transfers and home loan registrations for the individual buyers, all under one service.”

 MORE INFORMATION

From an earlier media release by the Government official website it was reported that the Mountain View Housing Project in Mossel Bay, forms part of the Integrated Residential Development Programme (IRDP), where 1006 housing opportunities will be created for qualifying beneficiaries.

The development, which is a provincial priority project, is the first flagship project within the Mossel Bay Municipal area. It comprises of mixed land uses i.e. Breaking New Ground (BNG) units, Finance Linked Individual Subsidy Programme (FLISP) units and Social Housing units.

The construction of this R297 million budgeted project commenced in July 2019.

Minister Tertius Simmers, the Western Cape Minister of Infrastructure, said:

“It’s pleasing to note the progress that is being made with this project. The development has already significantly enhanced the aesthetics of the area and symbolises the importance of investing in infrastructure. In due course, just as the environment is improving, so too will the qualifying beneficiaries be able to establish a new and integrated community. These residents will also be much closer to the CBD, which ensures access to economic, job and many other opportunities.

As the Western Cape Government, we remain committed to accelerating human settlement delivery, while promoting social inclusion through the development of integrated, resilient, safe and sustainable human settlements in an open opportunity society.”

INFORMATION SESSIONS FOR BUYERS ON THE FIRST TIME BUYER WAITING LIST

 Information day sessions for first time buyers who are already on the waiting list of the Mossel Bay Municipality are scheduled on Friday, 8 December 2023 and Saturday, 9 December 2023 and these aspiring buyers will receive their personal invitations to attend.

Meyer de Waal

MDW INC Property Services

meyer@mdwinc.co.za

021 – 461 0065

083 653 6975