When people are in dire straits they make irrational decisions. This opens them up to abuse and exploitation. Once caught up in the downward spiral; stress levels affect cognitive thinking on a physical, hormonal and chemical level. Even the most level- headed individuals can sometimes make mistakes, which in the current environment can send them into this irreversible downward spiral.
Most people need personal education on a financial management level, however, this takes time. (Why don’t we learn this at school?) When your home is about to be repossessed there is no time for education. Education will not instantly ‘turn the world around.’
Research has shown that out of 18 million South African consumers:
- 12 million are unable to make monthly repayments to creditors.
- 8 million (out of this 12 million) can’t afford to make debt repayment arrangements that will pay off or reduce outstanding balances.
- 5.33 out of 8 million can’t afford other debt relief procedures.
From 2000 – 2012, homeowners in South Africa who received Sales In Execution (SIE) notices amounted to between 10,000 to 30,000 per annum! The highest was during 2009 and the least was during 2005. Even during the boom of 2005, 12,000 SIEs were issued. Since 2009, the average SIE notices have decreased to 17,000 per annum.
Auction sales increased over time while voluntary sales decreased by 50% and repossessions by banks decreased dramatically to as little as 5%. This indicates that financial institutions are becoming more willing to make arrangements with defaulting homeowners. This is certainly encouraging for the greater economic wellbeing of South Africa, however, the amount of (10,000 – 30,000 per annum) home owners receiving SIEs is still very high and a definite cause for concern.
The market for repossessed properties has become a viable business venture. To consider the loss of a home to one person and a business venture to another is conducive to a sick economic climate causing hatred, division, war and poverty.
Be that as it may, the amount of home owners losing their property still justifies action. This requires ventures that are motivated to improve lives, rather than capitalising on the pain experienced by others. It is expected the SIE tendency will increase over the next few years, as the public is strained to keep up with the increase in mere living expenses.
Because of this, specific strategies have been developed to ‘save’ people’s homes from being repossessed and sold, leaving them out of pocket. In addition, various products have been developed to start these individuals on a path toward educating themselves on various aspects of money, property and finance. Be careful, however, who you approach for a solution … there are many ‘takers.’
We have found effective products and teamed up with third parties to help turn the downward spiral people find themselves in, to an upward spiral. This helps these people to effectively, themselves, become investors in the future.
- We take care of the property in a way that nobody loses… not even the bank.
- We put the distressed family on a program to restructure their debt.
- We put them through a process that teaches them effective budgeting and personal financial management.
- We insure they become so financially savvy, they can buy a property again within a few years with a much better chance of success.
This is only the beginning. Once a distressed person has been through the process they will have learned so much, they too can become investors. They then can buy distressed owners homes, thus helping these distressed owners through the process.
Even more exciting is the prospect of dipping their toes into the more viable property investment market in the future with this new found knowledge and experience.
Have you ever considered that purpose transcends making money? Our aim is to gather people together to do something they believe in and allow profit to follow as a consequence, rather than as an end in itself. Hopefully, this will inspire investors to go the extra mile by taking less profit in the beginning. By applying our specific investment strategies, this will ultimately grow your money into massive profit.
In conclusion, if you are in financial stress and your home is about to be auctioned off, it is not the end of the world. You can go through our program. Soon you will become an investor yourself, as you help others out of the same situation you were in.