Sign up with GoogleI don't think you will be able to get out of this transaction now. You can try to negotiate with the transfer attorneys to lower their fees a bit. If you have a lawyer friend who can help you, ask the seller if you can use your lawyer to handle the transfer, which will also save you some money.
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Gah! Buying a house - pre approved, offer accepted, cannot afford the transfer fees.
- Thread starter Laserdick
- Start date
Nope, don't have this problem. Busy in the process of getting my own place. Put down a 10% deposit in cash, have liquid cash still available for the attorney fees, transfer fees etc, just waiting for all the nitty gritty paperwork to be done. Should of done your homework before you got into this. Its not a cheap decision.
Kosmik
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How do you buy a house as a result of direct marketing? :wtf:
Not being snarky, I genuinely don't follow what you mean. It's not like life insurance or a credit card, it's a freaking house!
Sinbad
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Transfer duty is a tax. It's a legislated amount, you can't negotiate on it.
biometrics
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When applying for a personal loan just don't mention bridging finance, they'll decline then. Just say it's for stuff you want to buy.
Suspect99
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Standard have a jump start option where you can add the transfer costs into the bond cost. but your interest rate will be higher
On a side note:
Standard bank offered me a 100% loan at 9.7%
Albaraka offered me a 95% at 8.5% "profit rate"
Which one is better? take into account that albaraka does not work on interest so from your repayments there is a fixed amount which comes from principal and the rest goes towards their profit.
And standard uses interest so the principal amount is the difference between the interest on the diminishing balance and your repayment
On a side note:
Standard bank offered me a 100% loan at 9.7%
Albaraka offered me a 95% at 8.5% "profit rate"
Which one is better? take into account that albaraka does not work on interest so from your repayments there is a fixed amount which comes from principal and the rest goes towards their profit.
And standard uses interest so the principal amount is the difference between the interest on the diminishing balance and your repayment
Yes, I know that. But the lawyers also charge for doing the transfer for you. I have bought houses and, if the seller allows it, always elect to use my own lawyer who charges less.
To be honest, if you can't afford the transfer fees, you should'nt really buy the place. Yes I get that if the transfer fees were included in your bond amount, the montly repayment difference would not be that much. Having said that, when you move in, you have to pay water security deposits etc and small stuff here and there. Point is, if you don't have money for transfer fees, you'l more than likely not have money for the extra things that come along afterwards.
I could be wrong, just my opinion.
I could be wrong, just my opinion.
Really? That must be a first.
LOL @ those saying you are legally bound etc etc. You dont have the money. Simple. Cancel the deal. Transfer duties and lawyer fees for property is the biggest scam ever. That and the seller choosing the lawyer the buyer has to pay for. I choose my own attorneys becuase they give a massive 30% discount. If seller does not agree then I move on. market must be good if you can turn away a buyer for something that will have no bearing on the sale. What I have found, is that MOST sellers "choose" their friends or acquaintances to give them business. Most estate agencies also refer seller to "their" lawyers and if you dig a little, you will in many cases find that the owner of the estate agency is the owner of the lawyer firm being used. ONE BIG SCAM!
common practice actually.
ToxicBunny
Oi! Leave me out of this...
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Not having the money for the lawyers/transfer duty does not negate your being legally bound by the OTP, unless you have put those clauses into the OTP.
The seller and the estate agent can both go after you legally if you default on the sale because you just didn't have the money for those fees but managed to get a bond.
Which bank can you take a personal loan at? Will it not effect of the current process of you approved home loan?
Alton Turner Blackwood
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Yes, it will.
There's a clause in the quotation that stipulates should you accept the offer from the bank for the bond amount, you cannot make ANY debt without informing the bank that grants you the bond about the new debt while bond registration hasn't happened yet.
They will then reassess your bond application.
Honey Badger vs Nedbank two months ago. I wanted to take out a loan to make some changes before we moved into the new house. Good thing I read through the quote first!
KleinBoontjie
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If you're in a bind like the (Necro'd) OP, best bet is to find out from your provident/pension fund if you can do a pension backed loan. Most provident/pension funds do Pension Backed loans. Usually over 10 or 15 years and at low interest, like 7 or 8%. Just be careful, most transfer lawyers don't wait long.