Buying property on an instalment basis, rather than by taking out a mortgage, is gaining traction and a new finance company has entered the market offering loans for this old but relatively little-used method for property purchases. Judging by the R900-billion mortgage bond market, South African banks seem comfortable sticking to providing home loans to consumers who buy the traditional way. Instalment sales, provided for in terms of Roman Dutch law, are regulated under the Alienation of Land Act and have been traditionally used to finance low-cost housing and by developers selling their own stock. Banks generally do not offer instalment sale finance. Sentinel Homes CEO Renier Kriek has recently launched the finance offering for consumers who can afford to buy a property but who struggle to get bank financing because they are self-employed, foreign income-earners, lacking a credit record, or expatriates. Kriek says that Sentinel Homes, launched in May, is broadening access to financ...

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