Financing for home alteration / improvement?

dualmeister

dualmeister

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So let's say you have settled your bond and like an idiot did not leave open (i.e. access bond) and now you want to do some alterations to your house, what would be the best source of finance? Guessing about R100 to R150K.
 
I would always say dont go into debt BUT that may not be an option here.

So lets start with the better question, shortest period to pay it off?
 
Matt91 said:
Couldn't you just do something like re-mortgaging it?
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Yeah then this is likely the best option but I think its going to be super costly to reopen bond etc... This 100-150 is going to end up costing 200-300..
 
Snyper564 said:
Yeah then this is likely the best option but I think its going to be super costly to reopen bond etc... This 100-150 is going to end up costing 200-300..
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I wouldn't. You would have to pay attorney fees, bond initiation etc. Have you spoken to your bank? What about a loan or revolving facility? You can also apply for a building loan, it is not as rigid as a mortgage I believe. R120K is not a lot of money going by loan amounts, especially if you have to do a mortgage.

Depending on your credit record, there can be many other options open to you: overdraft, credit card, personal, all depends on what is offered. Remember, for loans under R250k I think, there are no early settlement penalties so you can take loan for 5 years and settle it in one, leveraging the bank's money and interest. I did that a few years ago, paid the interest until bonus time\profit and then wrote the loan off. My mother once had a car financed while she waited for her 32 day to clear. She did it so fast, they didn't even charge her the first months full installment/interest.
 
Kosmik said:
I wouldn't. You would have to pay attorney fees, bond initiation etc. Have you spoken to your bank? What about a loan or revolving facility? You can also apply for a building loan, it is not as rigid as a mortgage I believe. R120K is not a lot of money going by loan amounts, especially if you have to do a mortgage.
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Like a short term loan with the house as collateral? Will work out cheaper than a bond in any event.
 
Wouldn't a R150k bond be quite cheap to register? Aren't the fees tied to the loan amount?
 
Guys have put me off from getting a loan.
Guess I must just live with the shithole :ROFL:
 
Do cash they said, it will be better they said...

Plan was to fix one big thing a year.

I saved enough for the improvements to be made, contractor f*cked us over again. Now I am also looking at taking out a loan/second mortgage to fix the sh*t he has left us with, as well as the remaining big ticket items.

Also going the DIY route as far as humanly possible, as I am starting to think that there is not a single decent contractor left in this world...
 
FNB interest rates are massive on personal loans, last time I looked was something crazy like 27.5% - @dualmeister have you ever done a credit check using Clearscore? They have a tab that has loans offers based on your credit report might be something worth checking out?
 
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