Buying a house without bond

[I.am.Sam]

You amakwerekwere shouldn't even be allowed to purchase property here. Tsek!

pot

 

[Genghis Khan]

Hope it works out for you !

My view is that some people see houses as an investment, rather than something you live in. This is one of the biggest reasons that pushes house prices up.

You mention the UK is 'farked', however, part of the problem is due to foreigners with money buying property for cash, which in turn pushes house prices up, which in turn prices local people out of the market. You then understand the anti-immigrant sentiment ( abzo commented, probably in jest, that you should go away...but in some ways, he is correct ).

 

[saturnz]

Hope it works out for you !

My view is that some people see houses as an investment, rather than something you live in. This is one of the biggest reasons that pushes house prices up.

You mention the UK is 'farked', however, part of the problem is due to foreigners with money buying property for cash, which in turn pushes house prices up, which in turn prices local people out of the market. You then understand the anti-immigrant sentiment ( abzo commented, probably in jest, that you should go away...but in some ways, he is correct ).

I welcome these cash buyers, my wealth increases while I get to do nothing.

 

[Genghis Khan]

I welcome these cash buyers, my wealth increases while I get to do nothing.

Yep, this is exactly what the previous Labour Government promoted. Inflated house prices, where the house 'earned' more money in a year, than actually what the owner earned via normal work. People were happy as they had 'wealth'.
They could use this false wealth to take out further loans ( a la Ponzi scheme )

 

[IziWhatNow]

Liquidating foreign investments and bringing the cash here would attract tax if I'm not mistaken, be it here or the original country. Best you talk to a tax practitioner before making the decision

 

[saturnz]

Yep, this is exactly what the previous Labour Government promoted. Inflated house prices, where the house 'earned' more money in a year, than actually what the owner earned via normal work. People were happy as they had 'wealth'.
They could use this false wealth to take out further loans ( a la Ponzi scheme )

its one big ponzi scheme

 

[Hamish McPanji]

You mention the UK is 'farked', however, part of the problem is due to foreigners with money buying property for cash, which in turn pushes house prices up, which in turn prices local people out of the market.

I am referring to the getting funds from there at the schitty rate

 

[Spacerat]

dont buy without a bond, even if you can afford it. Take out a bond with access bond type facilty, then almost fully pay it up. No real interest. At least you have free cash at a very low interest rate. I you pay the house off, the cash is not accessible. Not good if you need cash for a rainy day.

 

[Hamish McPanji]

dont buy without a bond, even if you can afford it. Take out a bond with access bond type facilty, then almost fully pay it up. No real interest. At least you have free cash at a very low interest rate. I you pay the house off, the cash is not accessible. Not good if you need cash for a rainy day.

1. Buy a house
2. Use the house as collateral to buy a small apartment for rent
3. Build up credit rating.
4. Pay up apartment asap after a couple of years
5. Use apartment as collateral to buy additional property

Sound reasonable?

 

[Tomtomtom]

1. Buy a house
2. Use the house as collateral to buy a small apartment for rent
3. Build up credit rating.
4. Pay up apartment asap after a couple of years
5. Use apartment as collateral to buy additional property

Sound reasonable?

Do you need a mortgage for your credit rating? Or vice versa. My score is practically maxed-out and I've never had a mortgage. I'm pretty sure I could raise one with little more than an accountant-signed balance sheet. Maybe I'm wrong. But...

A bank is a place that will lend you money if you can prove that you don't need it.

If you have sufficient safe, liquid assets to cover a bond, banks will fall over themselves to sell you one. But, they need to know they're one lawyer away from your goods if you default, so I guess SA-domiciled is an advantage. A house isn't necessarily the best collateral though, being relatively illiquid. A REIT holding though...

My view is that some people see houses as an investment, rather than something you live in. This is one of the biggest reasons that pushes house prices up.

You mention the UK is 'farked', however, part of the problem is due to foreigners with money buying property for cash, which in turn pushes house prices up.

That's one half of the equation. The other half is the UK's notorious building codes and regulations, the Green Belt, etc.

In other words, a big part of the problem is that people buy houses and then go all NIMBY on the neighbourhood. Out of the two possible solutions to the housing-cost problem, viz. curtailing demand with heavy applications of jingoism, or increasing supply by de-regulating the cr*p out of development, the latter is the superior option imo.

We definitely have this problem here too (CPT specifically) but I'd rather we sort that out with some help from US$ inflows than by restricting foreign buying, therefore devaluing the Rand, therefore shooting our own feet off.