Buying a house....

[biometrics]

To give you guys an idea what a self employed person has to do, this is addition to the normal stuff like ID, offer to purchase, bank statements, payslips etc.

Nedbank

• Updated Letter from auditor stating drawings
• Latest financial statements. (Ending February 2018)
• Latest 6 months management account statements
• IT34 from SARS to prove income that is been declared.
• Last 6 Months personal bank statements
• Last 6 months Business bank statements
• Company Registration documents if business is registered as a company
• CC / CK Documents if company is registered as a CC/CK
• Signed Personal and Business Assets and Liabilities.

ABSA

1. Auditors letter confirming income
2. Latest 2 years financial statements
3. Management accounts not older than 2 months
4. Latest 6 months business bank statements

Can't find the others now but they are similar.

Standard Bank gave me the least hassles.

 

[ScottulusMaximus]

Just create some payslips on Excel and say that you work for this company for a salary.

Doesn't work as below, I get a payslip form the accountants just like every "full-time" employee in SA. I'm not even authorised to pay my own salary ffs, goes off with payroll.

However, I've heard they can now do a check on businesses to see who the members and directors are.

Not sure how they're picking it up with me, business name is probably a rather large clue however...

Even though I've been with the same company for 12 years and earn a salary, because I have shares in the business I'm considered self employed. The many extra hoops you have to jump through is infuriating.

Yip, but I'm sole owner so they get even more into a tizzy. My auditors have better **** to do than process financial statements, cash flow projections and management accounts early. But hey, that's why I pay them.

 

[Marsie27]

When you do find the time to get married, concentrate on the marriage rather than the wedding, and rather put the money an over-the-top wedding would have cost you into your bond, and pay that off a year or two early. It's possible to have a decent celebratory party without it costing an arm and a leg, but as soon as suppliers hear the word wedding they rub their hands in glee.

 

[Venomous]

Don't let it worry you, not as bad as it sounds just frustrating as all hell but DO YOUR RESEARCH! before starting the procedure.



Originator can do them, not filling out another form that asks for ID number and then directly under it date of birth...



Employed but not enough to do it on her own, I make the big bucks Water in levy and prepaid electricity luckily.



That's illegal isn't it? once the OTP is signed it's binding.

Nope it is not illegal for the seller to accept more than one IF all the prospective buyers are informed and clearly understand the terms.
It must be clearly stated even before you sign the OTP and must be written in the OTP right in the front. And once an offer had been accepted, if say only 1 offer was initially made, they cannot accept another offer at a later date if your offer is slow in progresssing. So in short all offers in at the same time if everyone was pre-informed else it stays a single offer until it either fails or is fully successful.

However as a buyer you may only make one offer at a time if no others offers you made are pending anymore say due to delays(expiry) or being declined you may then make an offer on another place.

 

[ScottulusMaximus]

Nope it is not illegal for the seller to accept more than one IF all the prospective buyers are informed and clearly understand the terms.
It must be clearly stated even before you sign the OTP and must be written in the OTP right in the front. And once an offer had been accepted, if say only 1 offer was initially made, they cannot accept another offer at a later date if your offer is slow in progresssing. So in short all offers in at the same time if everyone was pre-informed else it stays a single offer until it either fails or is fully successful.

However as a buyer you may only make one offer at a time if no others offers you made are pending anymore say due to delays(expiry) or being declined you may then make an offer on another place.

So who "gets" the house? And why did you enter into this purchase? Just curious cos it sounds like a clusterfck.

 

[Venomous]

So who "gets" the house? And why did you enter into this purchase? Just curious cos it sounds like a clusterfck.

When we signed we thought "how bad could it be?"

It's a really nice place, on urgent sale, we offered the asking price and that was still around 500k less than valuation.

Little did I realise the pressure, stress, frustration that could go hand in hand with that.

Approval in principal from bank was at first oked, and then it was changed that it has to be a full signed offer from the bank, not just approval. I had to beg and plead and sweet talk and grovel and then we got the first fully signed approval.
The guy that got really, really, really, really mad about losing out threatened legal action as Std bank had given approval in principal pending valuation.(I begged Nedbank on the Mon that they needed to send someone to value so it can get done ahead of time, they went wed morning late)
And Std bank could only send a valuation person on the Thurs/Fri
Property price was over a million.

Properties over 1mil must by law be valued in person before the banks can sign off.

Personally - I'll never do that again!! I sleep 4-6hrs a night. Mostly 5.
Mon and Tues that week I had ZERO! Sleep!

Wed I slept a dead 6hrs, and heard nothing.

 

[AlmightyBender]

Just out of interest for all you peeps, I work in the Anti-Money Laundering industry and all these hoops you need to jump through are because of that, not the financial risk to the bank. These are all directives from the FICA and similar acts. The banks are forced by law to collect these documents and perform due diligence.

So while you are correct that business owners actually pose less financial risk than employees, they pose a much greater risk in terms of money laundering and terrorist financing.

I foresee a future where you will possess a blockchained digital ID with all your relevant documents uploaded once, and then you would be able to just share your digital ID instead of filling out all these forms.

 

[Venomous]

To give you guys an idea what a self employed person has to do, this is addition to the normal stuff like ID, offer to purchase, bank statements, payslips etc.

Nedbank

• Updated Letter from auditor stating drawings
• Latest financial statements. (Ending February 2018)
• Latest 6 months management account statements
• IT34 from SARS to prove income that is been declared.
• Last 6 Months personal bank statements
• Last 6 months Business bank statements
• Company Registration documents if business is registered as a company
• CC / CK Documents if company is registered as a CC/CK
• Signed Personal and Business Assets and Liabilities.

ABSA

1. Auditors letter confirming income
2. Latest 2 years financial statements
3. Management accounts not older than 2 months
4. Latest 6 months business bank statements

Can't find the others now but they are similar.

Standard Bank gave me the least hassles.

Yip, that sucks.

And as we could afford the place on just his salary we went that way. And then registered in both names at deeds office.

We could have afforded about triple the value of this place, according to the banks if we pooled resources. But why? We're not going to need 5 bedrooms.
It has a 1000m2 property. There are 2 things we'd like to change, but have decided to wait about 2 years. And the changes will cost under 100k even with expensive finishes. But will add a further 500k in value above its current valuation

 

[RandomGeek]

Just out of interest for all you peeps, I work in the Anti-Money Laundering industry and all these hoops you need to jump through are because of that, not the financial risk to the bank. These are all directives from the FICA and similar acts. The banks are forced by law to collect these documents and perform due diligence.

So while you are correct that business owners actually pose less financial risk than employees, they pose a much greater risk in terms of money laundering and terrorist financing.

I foresee a future where you will possess a blockchained digital ID with all your relevant documents uploaded once, and then you would be able to just share your digital ID instead of filling out all these forms.

Question - feel free not to answer

Is it purely a box-checking exercise or does the institution really care about this whole ream of paperwork coming their way? Does the employees scrutinise every page of every doc or is more along the lines of "we got the docs with the required headings" etc etc?

 

[ScottulusMaximus]

When we signed we thought "how bad could it be?"

It's a really nice place, on urgent sale, we offered the asking price and that was still around 500k less than valuation.

Little did I realise the pressure, stress, frustration that could go hand in hand with that.

Approval in principal from bank was at first oked, and then it was changed that it has to be a full signed offer from the bank, not just approval. I had to beg and plead and sweet talk and grovel and then we got the first fully signed approval.
The guy that got really, really, really, really mad about losing out threatened legal action as Std bank had given approval in principal pending valuation.(I begged Nedbank on the Mon that they needed to send someone to value so it can get done ahead of time, they went wed morning late)
And Std bank could only send a valuation person on the Thurs/Fri
Property price was over a million.

Properties over 1mil must by law be valued in person before the banks can sign off.

Personally - I'll never do that again!! I sleep 4-6hrs a night. Mostly 5.
Mon and Tues that week I had ZERO! Sleep!

Wed I slept a dead 6hrs, and heard nothing.

Rather you than me mate, rental contract expires end Sep and I'm already stressed, trying to do all this in a week would give me a heart attack.

Just out of interest for all you peeps, I work in the Anti-Money Laundering industry and all these hoops you need to jump through are because of that, not the financial risk to the bank. These are all directives from the FICA and similar acts. The banks are forced by law to collect these documents and perform due diligence.

So while you are correct that business owners actually pose less financial risk than employees, they pose a much greater risk in terms of money laundering and terrorist financing.

That's interesting actually.

Got a call from ooba, has been passed to the self-employed basement gremlins, again...

 

[Venomous]

Rather you than me mate, rental contract expires end Sep and I'm already stressed, trying to do all this in a week would give me a heart attack.



That's interesting actually.

Got a call from ooba, has been passed to the self-employed basement gremlins, again...

Oh the house hunting was an on again and off again process of nearly 18 months as we'd look, get tired, stop, then start looking again another day.

That last stretch was insane. Then came the wait for all the legal stuff... ... Soooo long.



I'm not a male

 

[Sideshow Bob]

My wife and I used ooba and it was super smooth sailing all done via email no issues super quick and great rates

ditto here - ooba rocks but then I am not self-employed. Most painful part of process was greedy estate agent and I kid you not - owner pacified me when agent was being a pain during final meeting.

 

[Kosmik]

People knock ABSA but they've done both my home loans and came out lowest interest wise to boot. Even gave me a excellant reduction in fees second time round, plus cash bonus for retaining them, saved 15k on the deal.

Shop around though, interest is king. Saying that, the originators were ridiculous for me.

 

[Other Pineapple Smurf]

Bought my house 6 years ago when my wife had been the breadwinner until I got a big bonus and matching raise that month, basically doubled my hobo salary.

Wife self employed, no debt or business debt. Business a decade old, a couple of staff, assets, cash in bank.

Banks gave us hell while doing a joint application and I was warned we would get a bad offer.

Did it alone. I had lots of debt but we are married ANC.

A day later two good offers from FNB and SA Homeloans. A few weeks later we moved into our new home.

Being self-employed gets held against you.

 

[AlmightyBender]

Question - feel free not to answer

Is it purely a box-checking exercise or does the institution really care about this whole ream of paperwork coming their way? Does the employees scrutinise every page of every doc or is more along the lines of "we got the docs with the required headings" etc etc?

Depends on the operations of the organisation I guess. I've worked in banking and insurance and I can assure you they go over everything, and then a QA goes over it again. Looking for contradictions and inconsistencies and evidence of forgery. All required by law.

The pain comes from what is deemed an acceptable document. So even if it is like one data point, the legislation might require that to be verified against a very specific document. We think a lot of it is silly as well.

E.g. why do I need a copy of your ID when I can verify your ID number via DHA API? ... I don't

 

[RandomGeek]

Depends on the operations of the organisation I guess. I've worked in banking and insurance and I can assure you they go over everything, and then a QA goes over it again. Looking for contradictions and inconsistencies and evidence of forgery. All required by law.

The pain comes from what is deemed an acceptable document. So even if it is like one data point, the legislation might require that to be verified against a very specific document. We think a lot of it is silly as well.

E.g. why do I need a copy of your ID when I can verify your ID number via DHA API? ... I don't

Thanks for the first-hand information. I have never in this side of the business and have always wondered why all this info is required, of which much is duplicate info.

 

[ScottulusMaximus]

I'm not a male

We can still be mates?

Depends on the operations of the organisation I guess. I've worked in banking and insurance and I can assure you they go over everything, and then a QA goes over it again. Looking for contradictions and inconsistencies and evidence of forgery. All required by law.

The pain comes from what is deemed an acceptable document. So even if it is like one data point, the legislation might require that to be verified against a very specific document. We think a lot of it is silly as well.

E.g. why do I need a copy of your ID when I can verify your ID number via DHA API? ... I don't

Thanks, clears some things up.

 

[Venomous]

We can still be mates?

Do you shag sheep?

 

[ScottulusMaximus]

Do you shag sheep?

Depends on the sheep.

 

[ScottulusMaximus]

ABSA first to issue an offer too, 99.43% of property value at 0.09% above prime. Would love to know how they get these values, why not just 100% but anyway... Sneaky bastards charging an initiation fee off the bond value day 1 to get 20 years interest on it, sneaky sneaky.

That interest rate any good by the way? I've no clue until I get the other offers.