The Winds of Change are Upon Us: The Benefits of short-term property finance
The benefits of short term property finance through Prevance is that each and every application is assessed on its own merit by our highly experienced team. There are no finance raising fees – in fact there are no hidden costs whatsoever. Our wide range of services includes providing end user finance via our in-house finance facility, Prevance Bonds as well as assistance with banks’ pre-valuations.
You can feel it in the air – 2018 is off to a very positive start. Government is taking a serious look into corruption and overall a feeling of positivity is sweeping across the country, thanks largely to the election of Cyril Ramaphosa as our new leader. There are clear signs that changes are afoot. Eskom has a new board and a number of high-ranking officials have been suspended while corruption charges are investigated. The news that Jacob Zuma has resigned has also had a positive impact on the rand, which has strengthened significantly.
This is of course terrific news for developers. Buyers are renowned for taking a ‘wait and see’ approach and it can be said with a fair degree of certainty that with all the goings-on over the last few years, many have decided to hold off buying, which has obviously impacted on the number of new developments that have been launched. The news that South Africa has a new leader will undoubtedly also have an effect on foreign sentiment as well, and with not every foreigner looking to buy a multi-million rand mansion on the Atlantic Seaboard, renewed interest in lock-up-and-go options could add to the growing demand for property across the country.
“One thing is for sure, now is not the time to have to delay builds or put things on hold because of a shortage of cash,” says Prevance marketing manager, Christo Jonker. “We understand the challenges which developers, regardless of their experience in the field, face and this extends to cash flow issues. As the adage says, the best laid plans of mice and men often go awry, and for this reason it’s important to have a solid backup system in place because money worries should be the last thing on any developer’s mind.
“Our products have been developed through our vast experience in this important sector and we are immensely proud of the services we offer. Our team understands that speed is of the essence when dealing with short term finance solutions and our products have been specifically designed to not only allow developers access to cash in the shortest possible time, but also to offer an array of options tailor-made for developers’ needs.”
In order to qualify for short term property finance the developer should:
- Have a proven track record.
- Have security in the form of a first mortgage bond on a property with twice the value of the required loan.
- Invested his own funds in the development.
Applicants also need to show the viability of the project.
It needs to be remembered that any product is a short-term solution. The money is only advanced in the short-term and as such is repayable within a few months. That said, those who meet the criteria could qualify for as much as R7-million per phase of a development.
“The beauty of applying for short term property finance through Prevance is that each and every application is assessed on its own merit by our highly experienced team. There are no finance raising fees – in fact there are no hidden costs whatsoever. Our wide range of services includes providing end user finance via our in-house finance facility, Prevance Bonds as well as assistance with banks’ pre-valuations.
“We have a proven track record in the short term property finance field and our products have helped numerous small to medium developers across the country overcome cash flow issues. Part of the reason for this is that we don’t impose restrictions as to how the money is utilised and developers can use the cash to kick-start, continue or complete a project.
“We, like the rest of the country, are tremendously excited about the recent changes in South Africa and are looking forward a more vibrant economy that will be aided by an increase in development projects.”