Investec pays off thousands of home loans in Gauteng

[TheChamp]

After receiving 3,600 mortgages as part of a loan deal, Investec has decided to settle the homeowners' debts. Title deeds for these properties in fifteen Gauteng townships will be handed over by the first quarter of next year.

Investec has cancelled the mortgage bonds registered over the properties. The title deeds of the properties are being returned to the registered owners and the underlying debt is also being waived by Investec.

Investec received the mortgage bonds as security for a lending deal.

“When we (…) received the bonds we decided that instead of trying to sell them, or collect on them - the right thing to do was to give the homes back to the people," Whelan said.

The majority of people receiving the title deeds are pensioners who've been paying off their bonds for decades, Investec said.

Investec pays off thousands of home loans in Gauteng | Businessinsider

The bank received the home loans as security for a lending deal.

www.businessinsider.co.za

 

[Sinbad]

#MeToo please?

 

[Ninja'd]

#MeToo please?

Oh no, you're still getting screwed.

 

[zulucat]

The big, bad capitalists strike again... Oh wait!

 

[Bernie]

The marketing value proposition of doing this was probably a lot higher than actually spending millions on a marketing campaign. I doubt there was any altruistic motive behind this. This was purely a financial decision that benefited Investec and just happen to benefit these home owners.

This is just my skeptical self musings.

 

[R13...]

The marketing value proposition of doing this was probably a lot higher than actually spending millions on a marketing campaign. I doubt there was any altruistic motive behind this. This was purely a financial decision that benefited Investec and just happen to benefit these home owners.

This is just my skeptical self musings.

What benefit? They don't really sell their products in that customer base. They target higher LSMs. But suppose good publicity is good publicity.

 

[Bernie]

What benefit? They don't really sell their products in that customer base. They target higher LSMs. But suppose good publicity is good publicity.

Not marketing to this specific market segment, but just for general social responsibility type benefit, brand awareness, the usual marketing cr@p.

 

[SaiyanZ]

The marketing value proposition of doing this was probably a lot higher than actually spending millions on a marketing campaign. I doubt there was any altruistic motive behind this. This was purely a financial decision that benefited Investec and just happen to benefit these home owners.

This is just my skeptical self musings.

This is SA and this sort of thing always backfires. Their core business is providing private banking services and that customer base is going to now ask why they aren't getting any freebies. The money/security to be able to fund these sorts of things ultimately comes from paying clients.

 

[konfab]

The marketing value proposition of doing this was probably a lot higher than actually spending millions on a marketing campaign. I doubt there was any altruistic motive behind this. This was purely a financial decision that benefited Investec and just happen to benefit these home owners.

This is just my skeptical self musings.

You are right, will speak to my financial manager(aka the wife) about this to confirm but I bet the following has happened:

The majority of people receiving the title deeds are pensioners who've been paying off their bonds for decades, Investec said.

“These recipients now have a home of their own and an asset they can use in other life-changing transactions, like starting a business or educating their children,” says Richard Wainwright, Investec CEO.

I bet this group of bond owners in particular were badly behind in their bond payments. And since they are pensioners, they are unlikely to ever be able to repay the bond. A 80 year old person will not be able to pay off 10 years of their mortgages.

Thus Investec buys a whole bunch of bad loans:

After receiving 3,600 mortgages as part of a loan deal, Investec has decided to settle the homeowners' debts.

They will have known about this when they did the deal.

Thus I bet Investec has written off the debt and claimed it as a loss to offset taxes. They win that amount in tax as a tax deduction and they get the PR.

 

[rietrot]

You are right, will speak to my financial manager(aka the wife) about this to confirm but I bet the following has happened:


I bet this group of bond owners in particular were badly behind in their bond payments. And since they are pensioners, they are unlikely to ever be able to repay the bond. A 80 year old person will not be able to pay off 10 years of their mortgages.

Thus Investec buys a whole bunch of bad loans:

They will have known about this when they did the deal.

Thus I bet Investec has written off the debt and claimed it as a loss to offset taxes. They win that amount in tax a tax deduction and they get the PR.

But who cares. It's still a good thing.
People always want stuff for free, but as soon as someone gets something for free they are either jealous or question the motive of those giving it.

Investec did something good. They wrote of a bunch of bad debt that they weren't going to recover in anyway, instead of forcing pensioners out of their homes for what was probably small insignificant amounts to them.

 

[Sinbad]

But who cares. It's still a good thing.
People always want stuff for free, but as soon as someone gets something for free they are either jealous or question the motive of those giving it.

Investec did something good. The wrote of a bunch of bad debt they they weren't going to recover in anyway instead of forcing pensioners out of their homes for what was probably small insignificant amounts to them.

Agreed

 

[konfab]

But who cares. It's still a good thing.
People always want stuff for free, but as soon as someone gets something for free they are either jealous or question the motive of those giving it.

I am not making a value judgement. There isn't anything wrong with people or businesses wanting to make money. That is the only way that wealth is created.

To be technical, these people didn't get anything for free. They allowed Investec to retain some of the money that the government wanted to steal. Thus the people really "paying" for it is the South African taxpayer with which I have absolutely no problem with as the money isn't theirs to begin with.

Investec did something good. They wrote of a bunch of bad debt that they weren't going to recover in anyway, instead of forcing pensioners out of their homes for what was probably small insignificant amounts to them.

Legally, they would only be allowed to write off the debt and get the tax deduction. if it was irrecoverable. Which is defined as it costing more to recover the debt than the value of the debt. The legal fees alone for doing this are likely more than any measly debt they would get back.

 

[ponder]

This evil wmc company is just perpetuating apartheid spatial planning.

Somebody should put to an end this handing out of title deeds nonsense, hey @Excalibur...

 

[konfab]

This evil wmc company is just perpetuating apartheid spatial planning.

Somebody should put to an end this handing out of title deeds nonsense, hey @Excalibur...

Exactly, these poor peasants are being exploited by this racist concept of title deeds, and thus, as 80 year old African children, should be protected from the evils of capitalism by having all their title deeds expropriated without compensation by the state.

 

[surface]

well done to myBB members who are part of this particular "wmc" as you give us hope for humanity.

 

[LaraC]

Awesome gesture from Investec.

I'll bet it is the best gift the title holders could wish for.

 

[MachoPants]

3500 less people getting screwed by Investec, that is a good thing