“The current crop of write-offs were bad loans that were made in good times – but we are now in a different market and it needs to be recognised as such.”

“By now, the banks’ rejection rate on bonds could, in my view, be 20% lower without undue risk to them. Home finance could and should now be making a greater contribution to banks’ profits, which will inevitably, it is now accepted, be well down on previous years.”

While the “score card” system of vetting bond applicants has merits, it often fails to recognise the realities of the new economy, said Lawrence.

I hope that Rob Lawrence is correct as home loans are declined way to easily these days. It is hard to get a home loan approved, and a little more approvals will be positive news for both banks and home buyers.

The strict criteria of the National Credit Act and increasing property prices are forcing South Africans to abandon temporarily any hope of becoming homeowners and making them tenants for longer than they anticipated two or three years ago.

This, in turn, has increased the attraction of buy-to-rent investment properties – and has led to both new and old landlords looking for ways of increasing their rental returns, says Mike Greeff, CEO of Greeff Properties.

“First and foremost,” he said, “if you want to add 20% to your rental (which is usually possible only when you get a new tenant) do all you can to improve the home’s security. Put in burglar and panic alarms, automate the garage doors, install security doors and security locks on windows and consider topping the boundary wall or fence with electrified wiring. Quite rightly, people will pay well for good security.”

Secondly, said Greeff, take a look at the kitchen, bathrooms and bedrooms. A dishwasher, an extractor fan and granite or marble tops in the kitchen, floor to ceiling tiles and new shower doors in the bathrooms and wood or tile coverings in the bedrooms add significantly to their appeal – and the home’s potential rentals.

Excellent advice from Mike Greeff. A must read article for the property investor and but-to-let property owner.

Pre-paid electricity in the rental property also helps with keeping your costs down, but on the other hand might make your tenant want to pay a lower rate.