Buying a house this year

Tander said:
So my partner and I have decided to buy a house this year when we get back to SA. Naturally I wanted her to also be on the bond, however it seems we need a 25% deposit for that as she is not a South African citizen.
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What do you mean "be on the bond"? You mean be jointly liable or something?
Why "naturally"?

1. Get a pre approval first before you make an offer.
2. Both have their benefits and disadvantages, you have to be a little more specific as to what you mean by "investment." It sounds like you want to live there so not really an investment property.
3. Depends, sometimes you get better rates through a bond agent as they get better treatment from the banks.
4. Yes, I'm sure they have thousands of customers. I'm not one though :P
5. Theoretically yes, you could do a transfer into shared ownership. It's very expensive, just like any other transfer of title, either 7% or 10% of the house's value or sale price or something. Probably best to ask your conveyancing attorney than a bunch of randoms on the Internet.
 
ToxicBunny said:
Your other option on the deposit front, is to get a 100% bond, and in your first month, you dump what you would have had as a deposit into the bond. Same net effect really, but you still have access to the capital in the event of an emergency.
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Not the same net effect at all, you will have a higher interest rate with no deposit. You will usually get significantly better rates if your LTV ratio is less than 1:1.
 
TJ99 said:
What do you mean "be on the bond"? You mean be jointly liable or something?
Why "naturally"?

1. Get a pre approval first before you make an offer.
2. Both have their benefits and disadvantages, you have to be a little more specific as to what you mean by "investment." It sounds like you want to live there so not really an investment property.
3. Depends, sometimes you get better rates through a bond agent as they get better treatment from the banks.
4. Yes, I'm sure they have thousands of customers. I'm not one though :P
5. Theoretically yes, you could do a transfer into shared ownership. It's very expensive, just like any other transfer of title, either 7% or 10% of the house's value or sale price or something. Probably best to ask your conveyancing attorney than a bunch of randoms on the Internet.
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Thanks for the feedback. :)

1. I'm applying with my bank directly to see what they will offer me as a first step. If I am not mistaken, going through any other bank or bond place will be tough as I cannot get original 3 months bank statements, as I am out of SA at the moment.
2. When I say investment, I mean that I don't intend on staying in the property longer than 6 to 7 years. At that point, I'd want to most likely sell it and move into a freehold and not be bound my any BC rules of a complex. That's the goal. :)
3. For now I'll have to apply at my bank (Reasons in point 1) however I'll go from there.
4. It appears I won't be one of them either. :p
5. I'll definitely follow up with them. All I needed to know if it was possible to add a name on to the title deed. :)
 
TJ99 said:
Not the same net effect at all, you will have a higher interest rate with no deposit. You will usually get significantly better rates if your LTV ratio is less than 1:1.
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I wasn't mentioning the difference in interest rates... it could happen that they are different. I remember when I got my bond the interest rate I was offered on 100% was lower than I was offered on 90%...
 
Tander said:
Thanks for the feedback. :)

1. I'm applying with my bank directly to see what they will offer me as a first step. If I am not mistaken, going through any other bank or bond place will be tough as I cannot get original 3 months bank statements, as I am out of SA at the moment.
2. When I say investment, I mean that I don't intend on staying in the property longer than 6 to 7 years. At that point, I'd want to most likely sell it and move into a freehold and not be bound my any BC rules of a complex. That's the goal. :)
3. For now I'll have to apply at my bank (Reasons in point 1) however I'll go from there.
4. It appears I won't be one of them either. :p
5. I'll definitely follow up with them. All I needed to know if it was possible to add a name on to the title deed. :)
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1. Some banks offer loan options specifically for non-residents. I know FNB does. Not sure about what the pricing is like though.
2. In that case it makes zero difference, the only thing you should be concerned about is capital growth. Both types of property will appreciate dependant on the location location location. The rules of most complexes are really reasonable and things that are actually the law already. Things like not being a nuisance etc is just being part of what I call "not being a ****". It's technically also illegal in a freehold property and in the old days the police would do something about it. In civilised countries they still do. In SA they're usually too busy attending to all the murdering, raping, stealing and general maiming going on though.
3. The physical bank statements issue could be resolved pretty easily through couriers etc if that's your problem.
5. Not just add I think. You'd need to re-transfer it to joint ownership. Which costs $$$.
 
Tander said:
4. Does anyone have any experience in dealing with SA Home Loans?
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Just FYI, SAHL is not a broker but an actual mortgage provider.

If you use a true Mortgage Originator, they approach all the banks on your behalf and the bank who registers the bond will pay a commission to the originator. You pay for this usually (not always) through a slightly higher interest rate than you would get if you went directly to the bank. If you have a long established relationship with your bank you would often get the best rate going direct to them.
 
TJ99 said:
1. Some banks offer loan options specifically for non-residents. I know FNB does. Not sure about what the pricing is like though.
2. In that case it makes zero difference, the only thing you should be concerned about is capital growth. Both types of property will appreciate dependant on the location location location. The rules of most complexes are really reasonable and things that are actually the law already. Things like not being a nuisance etc is just being part of what I call "not being a ****". It's technically also illegal in a freehold property and in the old days the police would do something about it. In civilised countries they still do. In SA they're usually too busy attending to all the murdering, raping, stealing and general maiming going on though.
3. The physical bank statements issue could be resolved pretty easily through couriers etc if that's your problem.
5. Not just add I think. You'd need to re-transfer it to joint ownership. Which costs $$$.
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Just to clear up some confusion. I am a South African citizen and am only in the UK on short stay. its my partner who isn't an SA citizen.

Thanks for all the info. Hopefully there is a way around the bank statements. Otherwise we'll just have to wait until we are in SA so I can get originals.
 
Just general advice, try and take as small loan as possible. I see more interest rate hikes in the near future. Debt is slavery.
 
You can't just add someone to a bond and title deed later on. Essentially you would be selling say 50% to the person you are "adding". You will have to pay similar fees to the attorneys and SARS as with the original transaction.
 
SoTrue said:
You can't just add someone to a bond and title deed later on. Essentially you would be selling say 50% to the person you are "adding". You will have to pay similar fees to the attorneys and SARS as with the original transaction.
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If that's the case, I assume there won;t be any extra fees because she is not a citizen?
 
Tander said:
Just to clear up some confusion. I am a South African citizen and am only in the UK on short stay. its my partner who isn't an SA citizen.

Thanks for all the info. Hopefully there is a way around the bank statements. Otherwise we'll just have to wait until we are in SA so I can get originals.
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Get a bond originator, ....they will do all the necessary for you...bank statement access as well. You sign a letter of authority for your bank to release your statements to any financial institution looking to grand you a mortgage.
 
dualmeister said:
Related.
http://www.property24.com/articles/what-you-should-know-about-getting-a-home-loan-in-2016/23442
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Very informative, thanks

yebocan said:
Get a bond originator, ....they will do all the necessary for you...bank statement access as well. You sign a letter of authority for your bank to release your statements to any financial institution looking to grand you a mortgage.
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Did not know you could do that. If I am unable to get a decent offering by myself from FNB, that'll be the next step.

SoTrue said:
I am not aware of any, but better you confirm with the conveyance attorney.
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Thanks, I'll do that once the process has started.
 
SoTrue said:
You can't just add someone to a bond and title deed later on. Essentially you would be selling say 50% to the person you are "adding". You will have to pay similar fees to the attorneys and SARS as with the original transaction.
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That's what I said

Tander said:
If that's the case, I assume there won;t be any extra fees because she is not a citizen?
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Citizenship has nothing to do with it. There will be a significant cost whether you are a citizen or not. There might even be Capital Gains Tax, not sure about how it works in joint ownership since I've never encountered anyone using it. Check with your conveyancer and/or books cooker.
 
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