Future Rental Income
Buying an investment property is a fantastic way to build wealth and generate a steady monthly income. It's a smart strategy that can significantly decrease your personal debt commitment over time. Because of this, it's a very common question from potential buyers: "Can I use future rental income to qualify for a home loan?"
It's a logical assumption, but over the years, banks have identified the risks involved in this type of financing. A property may stand vacant, or a tenant may default, meaning that future income is never truly guaranteed at the time of application.
This is why most banks do not factor in future rental income to determine your affordability. However, this is not a universal rule and both Nedbank and Absa bank have specialized products that will consider the use of this future income.
These are specialized products, and a full assessment is required to determine eligibility. We will guide you through the requirements for each option.
Absa bank has a specific Buy-to-Let option for clients who already own at least one property, where a percentage of the potential rental income from the new property can be factored into your affordability assessment.
Nedbank offers a similar option, but a significant benefit is that you do not necessarily have to own a prior property to be considered for this product, making it an excellent opportunity for first-time investors.
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