Sellers Advance: Capitalising on the Buyers’ Market
The adage of “Cash is King” has never been more pertinent than in the year 2020. The Covid-19 global pandemic has left many investors digging the fleece out of their back pockets. As per Stats SA, the first quarter report for South Africa’s 2020 GDP is down by 2% for the period and the Consumer Price Index for April 2020 is showing a year-on-year increase of 4.6% for Housing and Utilities. This paints a pretty clear picture of the squeeze as South Africans are asked to do more with less.
As can be seen from the Lightstone prediction model below, these macro market forces are set to have a marked effect on the interest rate.
Although the outlook on the property market is currently quite gloomy, the silver lining is that it is a great time to be bargain hunting. Property remains a sound long-term investment and your future self could very well benefit from a savvy move made in the present. If you’re looking to buy to rent, Sandton Central is a prime location to secure an investment property for future income generation.
In an era where cash flow is tantamount to a science, it can often give you the edge in any prospective financial dealing. Having liquidity on hand to capitalise on any opportunities that may arise could well be the difference between the winning offer-to-purchase, and the second-best offer.
Recent interest-rate slashes of 300 basis points in 2020 alone have led industry insiders such as Samuel Seeff, chairperson of Seeff Property Group, to believe that we may be seeing the start of the “best buyers’ market in over 35 years”. It is imperative that any would-be buyers are armed with the proper modern financial tools and knowledge for the job. Ignorance is not an excuse in the digital age, which is why we at Prevance, a specialist provider of short-term property finance solutions, are dedicated to ensuring that our products, such as Sellers Advance, are perfectly placed to meet our clients’ needs.
As we can see from the Lightstone property price forecasts below, the low value property range is set to drop substantially across the board. Music to the ears of prospective property investors looking to buy low and sell high into the inevitable upturn.
Whether you are looking to beat the rush to a hot, new-on-the-market property as an upgrade to your family home, or you are more concerned with increasing turnover efficiency by minimising costly delays in the transfer process of real estate, the Sellers Advance solution can give you up to 75% of your sale’s net proceeds on successful registration/transfer with minimal fuss and at an extremely low cost. The funds can be available as soon as the transfer bond documents have been signed and the transfer costs are secured.
Once the buyer’s purchase price has been secured, the process is seamlessly integrated into the transfer of ownership cycle. When we receive the undertaking from the transferring attorney and our agreement with the seller is secured, then the funds are immediately transferred into your designated bank account. Prevance will recoup their advance plus costs when the sale eventually goes through, often months later. But in the meantime, you are free to enjoy the fruits of your newfound fortune.
It is easy to see the benefits of having such a rapid cash injection i.e. to secure your next property purchase. You can rest assured in the knowledge that your capital will be on hand once you are done dealing with the stress of selling your home. There will be no administration nightmares awaiting you as you prepare for the next step of your journey.