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Covid 19 – A Time to endure or embrace

The question that probably ponders the most in investors’ minds at the moment is whether to merely withstand the Covid period and hope for the economy to become more stable or certain, alternatively, whether this is indeed the time to jump on investment opportunities in a well calculated manner and trust that rewards will be reaped later.

There are obviously arguments for both points of views and with valid reasons.  We cannot foresee the future and cannot guarantee any outcome.  Even economists will struggle with that, but as attorneys we can guide you as our client in identifying the pros and cons of your decisions, discuss the implications of same and also ensure, as far as possible anyway, that you as the client make an informed decision that will create at least some security and stability. 


It’s a no-brainer that with the drop-in repo rate to a rate lower than it was in decades, as well as the fact that banks have lowered their requirements for loan approvals, that any buyer with a good credit record and stable generous income will be able to afford to buy property. 


Add to that a property with rental income potential and you as the buyer, might just make a very sound financial decision.  When one looks at buying commercial property as a going concern, with fixed lease agreements intact already, some factors need to be considered before approaching the bank with a finance application.  Banks will only be able to use the lease agreements as cession security to ensure proper payment of the monthly bond if the lease agreements and tenants are properly validated. 


In short, doing a proper due diligence on the property such as inspecting the latest rates and taxes, lease agreements, zoning certificates (just to mention a few), is a good start in ensuring that what is being advertised is indeed the whole picture.  


We, as commercial and property attorneys specialize in different types of agreements, including lease agreements. We can assist our clients in preparing their finance application by conducting the due diligence with, or for them. We can further prevent other pitfalls, which may occur during the transfer process, where we can act as conveyancers. We can further secure the initial lease agreements with tenants after the property has been registered.


As stated above, no one can foresee the future, but one can be open minded about opportunities and not miss something special or exciting because of an unpredictable economy.