Whether your portfolio is overflowing with properties or in need of a renovation, we believe in its story. Through the Absa Buy to Let Home Loan, you get a comprehensive suite of tools and assistance to navigate the expansion process.
The current property landscape
When purchasing property, it’s important to have a grasp of the latest industry trends. Dion Naidoo, Portfolio Manager at Absa Home Loans, and Waldo Marcus, Industry Principal at Tenant Profile Network (TPN) from MRI Real Estate Software, weighed in.
- Trends in rentals versus purchases
In Q1 of 2024, residential rental vacancies dropped to the lowest levels since 2016. According to the TPN Vacancy Survey Report 2024 Q1, “Nationally, 4.42% of rental properties were vacant in the first quarter of 2024, compared to 6.69% in the previous quarter”. Fewer vacant properties translate into an increase in tenant occupancy, articulating the fact that there is currently a higher demand for rental properties.
- Investor preferences
According to Marcus, “We’re seeing more, smaller micro-landlord investors entering the market”. Smaller investors have increased from 50.97% of the total investment population in 2014 to 57.47% in 2024. More of the investment population is evidently holding smaller portfolios while women investors have also been increasing their portfolios.
Expanding your property empire with Absa:
- Discounted rates on tenant screening services: Access streamlined finding, vetting and managing of reliable tenants through TPN. Get a 25% discount on its InvestorReport and LeasePack.
- TPN Residential LeasePack: This includes a comprehensive set of documents, including up-to-date leases that are cost-effective and compliant with the latest industry regulations.
- TPN InvestorReport: A comprehensive report to guide investment decisions, including rental market dynamics and demographic data.
- Property investment knowledge: Benefit from a free, six-month Foundation Membership, through SAPIN.
- Future rental income: Applicants who own one or more residential properties may be eligible to include future rental income in their credit affordability assessment.
- Affordability determination: We’ll determine your affordability based on the income declared on the Home Loan application received, which must indicate existing and/or future rental income.
- Existing rental income: We use the existing rental income being collected by the seller in the affordability assessment of the purchaser’s application.
Write your story with Absa:
● Loan-to-Value finance: Get an industry-leading loan to finance your investment.
- Interest rate concession: Unlock a 0.25%* interest rate concession (when you open a new Absa Cheque Account).
● Flexible interest rates: Access a variable or fixed interest rate, based on your unique needs.
● MultiPlan: Enables you to access equity and structure the loan over a shorter term.
● Home insurance: Get comprehensive homeowner’s insurance that protects you against unforeseen events.
Whether you have two existing properties or 10 on the horizon, with an industry-leading Absa Buy to Let Home Loan, expanding your property empire is easy.
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