 Hello, my name is Mayor Duval, I am going to take you through some tips and secrets in the industry, how you can become an expert when you buy a property. We see in 2020 that more and more first-time buyers are coming to the market and what we see is that although we are entering the market as first-time buyers, very little research is done as a home buyer how to get yourself ready and to get active in the market. Buying a property is one of the most expensive property investments that you will ever make and I'm here to share with you today how to become an expert, be an expert and actually make sure that when you buy a property you make it with the best advice and information available. In 2020 we see that 53% of home loans are coming from first-time buyers. All of a sudden first-time buyers are coming to the market and really getting their feet into the door to own a property. However, we still see that 56% of home loans are declined and we ask ourselves a question why is this happening? The interest rates are the lowest ever been. Home loan is the biggest investment one will ever make but we find that a buyer spends more time doing research what the mobile phone will cost him and the features of the mobile phone plan to buying a new property. So often we see that first contact that an buyer will make with an agent is purely to submit an application form on property 24 private property or the website of the estate agent to ask to contact me. This buyer enters the market with little knowledge of what will be required of a bank to qualify for property finance. They often rely on the information provided by the estate agent to guide them and assist them to buy a property. Quite often they do not consider the opportunity to qualify for a government subsidy such as FLISP to help them to buy the property. So we started digging a little bit deeper into the transaction of and DNA of buying a property and we say how much does an agent know about you as a property buyer? Is the agent the Mark Zuckerberg of properties that he knows everything about you or is the agent maybe blindfolded because he actually only met you today and you really didn't get to understand what your needs are, how much you can afford, do you have a deposit, are you a first-time buyer or are you investor? So if you look what Facebook knows about you Facebook knows everything about you because you have told Facebook where you live, who are your friends, where you shop, what you buy and much much more. So that brings us to the new buyer. Is the buyer actually also blindfolded? We're not talking about the estate agent only, we're talking about the buyer or is the buyer actually a person that's got the same knowledge as a Facebook client will have? So is the buyer just a name, telephone number and email or is the buyer actually also with a lot more information that when you come to the property transaction all this information is available about you? So we started looking what others are doing. We went to have a look at TPN tenant profile network. They profile a buyer or a tenant actually and they investigate if a tenant's got a good payment behavior. Now they even expanded the service to a service profiling a buyer or a tenant for property, for schools and for businesses. Again the tenant and the landlord needs to understand that I want to be a good tenant and therefore the tenant needs to put the base foot forward. Now we ask ourselves this base foot forward is this also applicable when buying a property? I'm a property buyer and I'm approaching a landlord. Am I approaching the transaction also with my eyes wide open or do I actually come be blindfolded? Why do I understand about property finance? What can I afford? Can I get a government subsidy? Are there alternative finance solutions for me like rent to buy, installment sales, even pension back loans? Do I have a deposit? What impact will the deposit make if I put down a deposit? Can I negotiate a better interest rate? What type of property can I buy? Do I have to buy an apartment? Do I buy in a security complex? Do I get a 12-month guarantee when I buy a property? Compare this with a cell phone, compare this with a car. You get a warranty, you get an extended warranty for your car but with a property you buy it, puts to it that means as is. A transfer process, how does it work to actually take transfer of a property? How long do I have to wait before the transfer is registered on my name? When can I move in? What happens with my keys? So we started doing some research and we actually went online and we asked a lot of our readers and our subscribers what do they actually want? Are you a first-time buyer or do you really own a property? How much do you earn per month? Do you earn more than $22,000? Do you earn less than $22,000? Now this $22,000 is critical because $22,000 is the ceiling of a cut of income that any buyer will get as a first-time buyer to qualify for a government subsidy. We also looked into a little bit deeper. If you want to buy a property, do you understand that your credit score must be in good check? So we had a look and see that quite a lot of buyers that actually haven't even looked at their credit score. A lot of them actually also went ahead and applied for a home loan pre-qualification. So they actually start shopping with some knowledge, some power in their pocket that they already have qualified themselves and they understand the home buying process. Then we realized we have to combine this information with online consumer housing education and we took this one step further and it's been actually going before COVID that we decided to take this information online. So we developed four modules. Our home buyer can actually equip themselves, educate themselves, inform themselves to get ready and fit before they buy the property. We did a little bit this and a little bit different. Normally you first read the book, what we did to be first developed the videos and then we published the book. So you've got a complete home ownership guide available for yourself and the content is exactly the same as in the videos. So now you can actually watch a movie and then you can read the book. So we started looking at me as the new property buyer. Am I educated? Do I understand the building blocks of getting to own a property? I'm looking at my affordability. Do I get a government subsidy? Do I have my thicker documents in place? Everybody will ask that about three or four times from myself. Do I have a deposit available? Now we can actually even change the block of deposit, bringing it closer to flisp because quite often you can use your flisp deposit also. Your flisp subsidy also has a deposit. When I qualify for a home loan and what I've loaned around will I qualify for? What type of property can I buy? If I buy in a sectional title scheme, what do I need to look out for? Do I need to look for the financial affairs of the body corporate? What impact will that be if I buy property and the body corporate is not managed well? So there are so many things that I need to educate, empower myself as a new buyer. So we decided to put all this information on one platform. If you go through a process, you get a view of your credit snapshot. Obviously if your credit profile is low, rather go for repairs first. Then we determine your monthly budget. How much can you spend on a property and how much do you want to spend and how much are you able to spend considering all your debt and monthly obligations? We also need to look at your personal information and from this information we are able to issue with a pre-qualification certificate for a home loan. This goes even further that we are able to give you a thicker pre-qualification as well. And also we give you a flisp pre-qualification. Now this flisp pre-qualification is very handy because you can use a flisp pre-qualification to apply as a deposit when you buy a property. We also enable you to upload your thicker documents so you only have to upload it once. We distribute for you to the bond attorney, to the transfer attorney, to the estate agent and everybody involved. Lastly you can upload your property interest that we can understand if you are buying a property in a security estate, two bedrooms, two bathrooms, parking, whatever you require from this. So this is one dashboard that will cover all your requirements for you as a property buyer. So we started looking at the property finance. What will a bank require? So we want to assist and educate and teach the home buyer to understand how a bank will think. Think like a banker because if you can think like a banker you can outsmart the banker. If you can outsmart the bank then you know what I do have to have to actually get a home loan approved. So the ingredients are very simple. There are three ingredients. Number one is your credit profile but again if you approach a bank or any lender with a bad credit score most likely they will decline your home loan application. The next one will be your affordability. Remember here you can also add your flisp subsidy to boost and bolster your affordability to qualify for a home loan and add a subsidy on top of your home loan to buy a property that's more expensive. The third one will be a loan to value and this is where deposit comes in handy. So a flisp subsidy again is a very valuable and handy tool to assist you to qualify for a home loan and you can put down your flisp deposit and negotiate a low interest rate. Three ingredients of buying property are the most critical concepts and that you have to understand to be able to buy a property. Now we have to also look at what if. So what if my credit score is low or bad? Will this keep me away from owning a property or will I actually be able to improve my credit score? How long will it take? What I need to do to improve my credit score? So we started looking at quite often a person feels that a decline has actually stopped my home ownership journey. Look at 56% of home loans are declined and we say that does this flat tire actually stop you from earning from reaching your goal? And as on either one of my team members or often say a flat tire doesn't stop your home ownership journey. What you do is you try to repair it. If you can't repair it yourself then you get assistance from somebody else. So we started assisting people and say let's first start as number one with your credit score. Does your application land up in the dustbin and that's the end of your purchase? Or do we analyze your credit score and if the credit score is flat or we've got a red score? Do we actually take that credit score and submit it for debt repay and get the right professionals to help you with that? Maybe you can't fix it yourself. So we've involved professional teams to assist you. But if your credit score is good let's get going and help you with your home loan, affordability analysis. We've teamed up with a company called Octogen and they are our professional flat tire or debt repair specialist. We're glad to help you in that instance should you have a bad credit score. So we further looked at how do people actually determine what is the home loan they can qualify for? We looked at what's going on in the industry and we see that many people are still using the traditional calculator. You put in the amount, you have a kind of indication of interest rate and it breaks down the home loan you ought to qualify for. Now this is old school. We decided let's take it more modern, let's take it online, let's make it accurate. So we took the home loan application process and launched it in 2016 and in those days it was published is this the game changer for pre-qualifying buyers? Now this is four years ago and you'll see now what happened in the last four years. If a thousand people signed up we find that 50% of them still fall off due to a bad credit score but the good news is that out of that 28% of people that start at the top actually receive their home loan pre-qualification certificate. Now I'm thanking COVID at the moment and I think it's one of a few things that happened positive in my life during COVID that our numbers have actually drastically increased because a lot of people do not want to go to the banks anymore. They do not have the time or they don't for safety purpose want to stand in queue to the bank. So we've seen a dramatically improvement in the figures of people that go online to do their home loan pre-qualification. You can see from September 2019 to August 2020 more than double of the number of people actually have gone to our online systems to check out the home loanmaking qualifier. And the best of all is that the bond originators that are using our software advocate that 90 percent of people that come through the system actually get their home loan approval and for me this is one of the most amazing advancements of the technology that's been developed to take home loan approvals up from 75% to almost 90% for me this was really the cherry on the cake. So the process is very simple you register online and when you get a welcome letter you then can pull your credit score. If your credit score is low or bad we connect to a debt repair service. Then you have opportunity to link your bank statements with the software. Through this you can I guide it then to calculate and inform insert information about your income and expenses. We immediately identify if you earn less than 22,000 rand. Remember 22,000 rand is the golden cut-off amount for a government subsidy. You can qualify for the subsidy if you earn between 3,500 and 1 rand and 22,000 rand. Immediately once you've completed this the agent or consultant and yourself are notified about the home loan amount that you ought to qualify for. Now this becomes very valuable because this is your bond pre-qualification certificate. This gives you the power to negotiate when you go to buy a property and in demonstrate that you are ready and pre-qualified as a home buyer. If you earn less than 22,000 rand we can put on top of that we can put your government subsidy as well. Immediately after that you can identify the property type that you want to buy and to make your life easier you can also upload your FICA documents. So the golden dream that you are chasing after here is to receive an online bond pre-qualification certificate. With this certificate you get a notification that the home loan that has been determined for you through online process which is 90% accurate compared to the 75% or even 50% approval rate is as good as you can get. This puts the power back into your hands to go out buy property negotiate and have a piece of mind that it's very likely that your home loan will be approved. But again there are more than one finance solutions. We look at almost as the hippo of home loan finance and we say let's look at a couple of alternative property finance solutions. You've got a home loan. If you earn not more than 22,000 rand and you are a first home buyer you can qualify most likely for a government subsidy called flisp. Then the alternative finance solutions available rain to buy or installment sales are also available and last but not least don't forget pension back loans. This is a huge opportunity to assist home buyers to actually apply back to the pension funds to make funds available to help them to buy properties. Now the interesting thing comes around how can I then use my government subsidy when I'm first home buyer and save 59,000 rand. Now this 59,000 rand is not cast in stone. The amazing thing is that if you earn less than 15,000 rand you can even get more than 59,000 rand. The biggest subsidy that you can get is a hundred and twenty three thousand rand. So let's take you through the process. The answer for that is actually use your government flisp subsidy. So I did some calculations and I look at the person and 15,500 rand a month. We work out the bond amount that you can qualify for and that bond amount comes down to 649,000 rand. So this is your buying power that you can go out. You can now add the subsidy on top of the 649,000 or if you want to save money you can take this subsidy and you can deduct it from a purchase price. This means that the 500,649,000 rand property will you will only pay 59,590,000 rand for that property. That is a huge saving that you can get. So we always say when you're first time buyer do not forget about flisp. Flisp stands for finance linked individual subsidy program and you need a home loan to get qualified for that. So now you can buy like a seasoned property investor and you can actually get your property under the market value. Remember when we started out we said that you make your money when you buy property not when you sell a property. So here you have already entered the market for 59,000 rand below the market value. This is a huge opportunity for any buyer. So we asked the question, me as a buyer do I now enter the property market with a blind fold or am I actually with my eyes wide open? Better understand the process. How does it work? How do I get my foot into the door? How do I pay less than the market price for a property if I'm a first-time buyer? I know what I can afford. I know what I want. I'm educated and a well-informed property buyer. That brings us to the question, when you are buying a property are you a Mark Zuckerberg of properties or are you a buyer with your eyes blind folded and are you educated? Thank you very much for your time. It's been a privilege and we look forward to assist you further to educate you inform you and empower you how to become a buyer and how to make the best out of your government subsidies. Thank you very much. That will be all for me today. We look forward to entertaining some questions and we'll be opening the floor right after this to take the applications and questions. Please feel free to bring your questions. We'd love to answer them. Thank you very much.