With the recent decision of the Monetary Policy Committee and the SA Reserve Bank to retain the repo rate at 7%, the economy is expected to remain stable, and with it, the property market.
This is good news for buyers and sellers alike, as well as for estate agents and others engaged in ongoing market trade. A stable economy means improved market conditions, and better ability on the part of market participants to plan going forward.
Healthy and steady sales are good for business, but the process after the sale can sometimes be held up by other factors. Usually, sellers and estate agents are only able to access the funds generated from the sale of a property once the transfer has been completed, and registered as transferred at the Deeds Office. This conveyancing process can be lengthy, which means that access to funds can be delayed.
Fortunately, property bridging finance is the solution, and an opportunity for sellers and estate agents to access a portion of their funds before the transfer is completed. Sellers who require a clearance certificate from their local municipality for arrear municipal bills can use property bridging finance to pay the arrears, thus expediting the sale of the property.
Estate agents can, once a sale is ready to be lodged for transfer, apply for property bridging finance in order to receive a portion of their commission sooner.
Having access to funds earlier means a number of benefits for the receiving parties. They are able to improve their financial planning and funds management, as well as use the funds for investment or other purchases. Their cash flow is more stable, and they are able to maintain a healthier credit record if funds are required for settling bills or debt.
It is important, however, to find the right property bridging finance partner. The firm should be reputable in the financial services industry, and offer a good service at a fair price. The right partner can mean the difference in the stability of your cash flow, especially if you engage in property transactions on a regular basis.