Buying or selling your home will likely be one of the biggest transactions of your life. So it’s no surprise that it poses a major risk for cybercrime. The most dominant of these are phishing scams, a trend that is on the rise due to an increase in online communications, working from home and poor software security systems.

Phishing, which has hiked by 350% since the pandemic began according to a Google Report, is a cybercrime performed by persons or groups who contact potential victims by posing as legitimate institutions to persuade them into providing private data, such as banking and credit card details, passwords, or personal identification information.

Read more at privateproperty.co.za

Protecting potential victims from fraud is in the spotlight as many people are unaware of the dangers they face daily when transacting and communicating online.

Having increased by over 300% during the pandemic, cybercrime is fast becoming one of the biggest threats to businesses globally – and the real estate industry is no exception, says Jackie Smith, head of Buyers Trust – a subsidiary of ooba Group.

Read more at businesstech.co.za

South Africa remains one of the countries where the greatest number of ransomware attacks are detected by global cybersecurity company Kaspersky, with ransomware threats increasing 23% in SA in the second quarter of 2021 compared to the first quarter.

Read more at news24.com

The Real Estate industry’s fraud risk has been brought under the spotlight, as cybercrime has increased by over 300% during the COVID-19 pandemic – making it one of the biggest threats to businesses around the globe.

“Every. 32 seconds, a hacker defrauds someone online. This equates to cybercrimes being committed around 2,244 times per day, with small businesses highlighted as the most vulnerable to these attacks,” says Jackie Smith, Head of Buyers Trust (a subsidiary of ooba Group) – a safe and secure bank-hosted deposit solution for homebuyers.

Read more at property24.com

Real estate transactions are at high risk of cybercrimes, particularly phishing scams, a trend that is spiking due to an increase in online communications, work from home policies, and weak software security systems.

Phishing, which has risen by 350% since the pandemic began according to a Google Report, is a cybercrime perpetrated by persons or groups who contact potential victims posing as legitimate institutions to lure them into providing private data, such as banking and credit card details, passwords, or personal identification information.

Read more at rei.co.za

A perfect storm of projected interest rate cuts and low property price growth has made 2024 an optimal year for first-time homebuyers to get their foot on the property ladder. These conditions are expected to improve even further, with Trading Economics citing a potential prime lending rate of 7.0% in 2025.

However, as Jackie Smith emphasises, future interest rate cuts are not guaranteed and should not be relied upon when determining one’s affordability and readiness to buy a home. As the Head of Buyers Trust – a cutting-edge bank-hosted deposit solution for homebuyers – she is all too aware of the challenges facing young would-be buyers.

“Reaching the goal of purchasing your own home in 2024 is definitely not impossible but it does require an understanding of the current property market and a realistic approach to your finances.”

She adds that while no one knows exactly what decisions the Monetary Policy Committee (MPC) will make over the next two years, homebuyers can set themselves up for success by dialling in on their finances.

“Just because you can afford a more expensive home doesn’t mean you should buy it. Rather start small and invest in upgrading it over time. Buying your own home in 2024 and ensuring that you’ll be able to hold on to it in the years to come requires smart financial planning and a well-thought-out strategy,” notes Smith.

4 Requirements to Make Your Homebuying Dream a Reality

Smith lists the top requirements for making your property dream a reality as follows:

1) Do Your Homework

Are you looking to build generational wealth through property, capitalise on the buy-to-let boom or simply find a home for your family to live in? Determining your property goal can help you get there faster, as well as secure the best possible deal.

The likelihood of finding a well-priced home in the current climate is high, with average purchase prices declining by -0.8% year-on-year. However, Smith recommends spending a few months scouring online property listings and talking to estate agents to get a better idea of property values in the area you’d like to buy in. “This information is vital in making a competitive Offer to Purchase (OTP) and ensuring that you’re not spending more than you have to.”

2) Prioritise Saving

Every homebuyer knows that they’ll need to budget to buy a home, but many don’t realise that doing so effectively requires a total mindset shift. “If this is something you really want, you’ll have to make sacrifices to get there, be it taking on a side hustle or forgoing purchasing any new clothes or electronics,” says Smith.

She says that the general rule of thumb is to have a minimum of R100,000 put aside to cover the additional costs of buying a home, which includes bond registration costs, transfer duty, conveyancing attorney fees, bank fees, moving costs and setting up utilities. “The additional fees can be significant and saving this much will take time – so be sure to start early.”

Here, Smith mentions that the ongoing trend of first-time homebuyers delaying their purchase till later in life to accumulate the necessary savings has led to a rise in cash homebuyers – those who don’t need to fund their purchase through a home loan. “Cash homebuyers will still need to show a proof of funds, either in the form of a verified bank letter – which can be quite costly – or by using the Buyers Trust platform which issues you a free bank guarantee. A bank guarantee serves as an official promise to the seller that the homebuyer’s financial obligations will be fulfilled.”

3) Put Down a Deposit

Buyers Trust can also be used to safeguard a homebuyer’s deposit, both by issuing a bank guarantee and through the extensive cybersecurity measures on the platform. “Data shows that deposits are getting bigger – growing by a whopping 23.7% year-on-year in the first-time homebuyer category according to ooba Home Loans. Being able to put down a large deposit takes discipline, and this discipline should be protected as well as rewarded,” says Smith.

Putting down a deposit is one of the most effective ways to prove your affordability to both sellers and lenders, and results in a higher likelihood of an OTP being accepted, lower monthly repayments and a lower home loan interest rate from the banks. “It also gives you immediate equity in the property by paying off some of the purchase price,” Smith adds

4) Boost Your Credit Score

The final requirement of owning your own home in 2024 is having a high credit score, as this plays a significant role in whether a bank will consider your home loan application should you not want to go the cash purchase route. An acceptable credit score is one that is over 610, while an excellent credit score is over 781. “Boosting your credit score means not spending more than 30% of your credit limit, paying off store accounts and paying your bills in time and in full. Improving your score may take some time, but you can also check your credit score online and for free to look for any inaccuracies.”

Help is available…

Those who are still struggling to reach their goal of owning their own home in 2024 may be able to take advantage of governmental resources, such as the First Home Finance Program (previously known as FLISP). This program gives young home buyers who are earning a gross household income between R3501 and R22,000 a month a subsidy to help finance their purchase and enter the property market.

“Everyone deserves the chance to own their own home and we don’t believe that property is a privilege reserved only for the select few. Programs like First Home Finance can help young homebuyers who have taken all the steps above and prioritised saving but are still struggling to reach their goals due to affordability, make their ownership dream a reality,” Smith concludes.

“When it comes to saving up for the purchase of a new home, a growing percentage of South Africans are well aware of the financial benefits of putting down a deposit,” explains Jackie Smith, Head of Buyers Trust, a cutting-edge bank-hosted deposit solution for homebuyers. “This is evidenced by the average deposit size increasing by 6.6% year-on-year, according to ooba Home Loans latest data.”

Read more at bizcommunity.com

And while young buyers prioritising deposits is a positive trend, recent anecdotal evidence from the FNB Property Barometer reveals that some homebuyers are taking drastic measures to fund their deposit by taking out a personal loan.

Read more at bizcommunity.com

Seeing that the new property laws have come into effect under the Property Practitioners Act (PPA) at the beginning of this month, both homeowners and the property industry at large now have new options available to them when choosing how to manage their deposit.

Read more at propertyprofessional.co.za

When it comes to home buying, nothing attracts the attention of the seller quite like a deposit. Putting down a deposit when signing an offer to purchase (OTP) is seen as a show of commitment.

A deposit – usually 10% of the cost of the property – indicates to both the banks and the seller that you are a serious buyer.

Read more at businesstech.co.za

New property laws came into effect under the Property Practitioners Act (PPA) on 01 February 2022. 

These changes affect both homeowners and the industry at large, with one of the most significant changes being centered around trust accounts. Explains Jackie Smith, head of Buyers Trust – a subsidiary of ooba Group: “Property practitioners (estate agents) can now be exempt from having to have a trust account should they meet certain conditions.”

Read more at engineeringnews.co.za

Seeing that the new property laws have come into effect under the Property Practitioners Act (PPA) at the beginning of this month, both homeowners and the property industry at large now have new options available to them when choosing how to manage their deposit.

These changes affect both homeowners and the industry at large, with one of the most significant changes being centered around trust accounts. Explains Jackie Smith, head of Buyers Trust – a subsidiary of ooba Group: “Property practitioners (estate agents) can now be exempt from having to have a trust account should they meet certain conditions.”

Read more at propertyprofessional.co.za

Trust is fundamentally important to every business transaction and in the case of a property sale it becomes absolutely crucial.

When you buy or sell your Cape Town home, you’ll need to know that your deposit is in good hands. This will also prevent unexpected delays from cropping up due to payment issues from the buyer’s side. 

Read more at caperealty.co.za

• A deposit lowers your monthly repayments and gains you more favourable interest rates, saving you money in the long-term.
• A deposit shows the seller and lender you’re committed, and makes you less of a risk to the lender.
• It is possible to get a 100% home loan, removing the need for a deposit, but doing so will lead to higher interest rates and higher monthly repayments.

Buying a home  usually requires you to pay 10% to 20% of the purchase price up front. This lump sum is referred to as the deposit; and while saving up for the deposit may be a challenge, it can benefit you for a number of reasons, and save you money in the long-term.

Read more at simplyonline.co.za