EXPERT INSIGHTS FROM ELNA KROUKAMP OF EVER BOND ON PROPERTY OWNERSHIP AND FINANCING

Elna Kroukamp, the owner of Ever Bond, has been a leading bond originator since 2004, with an impressive track record of over R2.7 billion in registered bonds. Her expertise extends to residential development approvals and managing high volumes of bond applications, achieving an approval rate of 80–90% thanks to her thorough screening process and deep industry knowledge. Ever Bond partners with all major banks, including SA Home Loans, offering services across South Africa.

Below, Elna shares her insights on three critical topics for property buyers and investors:

Investment Options: Group or Pooled Property Investments

Elna highlights that group property investments, known as Collective Buying, allow up to 12 individuals to purchase property together.

Key points include:

• All group members must qualify for the bond collectively, with good credit profiles and repayment histories.

• Each member is jointly and severally liable for bond repayments.

• In case of the passing of a member, the bond is handled through the Deceased Estate process.

• Repayments can be managed via a single debit order or multiple debit orders from all members involved.

Maintenance Costs: Factoring in Long-Term Expenses

Long-term maintenance costs, such as repairs and painting, are not included in the bond amount. The bond value is limited to the Offer to Purchase amount or the client’s qualification amount, whichever is lower.

• Maintenance is the property owner’s responsibility.

• If the property’s value increases over time and the owner’s income allows, a further bond can be applied for to cover maintenance costs exceeding R50,000.

Ownership vs Renting: Financial Considerations

Elna advises that while property ownership is a solid long-term investment, renting offers flexibility, especially for young adults.

Key comparisons:

• Renting: Lower initial financial burden, flexibility for job mobility, and fewer responsibilities. However, it lacks equity building and is subject to annual rental increases.

• Owning: Builds equity over time, benefits from property appreciation, and provides long-term financial stability but comes with higher upfront costs and responsibilities.

Elna emphasizes that deciding between owning and renting depends on factors such as financial stability, career path, long-term goals, and readiness for homeownership responsibilities.

For tailored bond and property financing solutions, connect with Elna Kroukamp at Ever Bond - trusted experts in helping South Africans achieve their property goals.

Everbond - Home Loan Specialists - Everbond