Gah! Buying a house - pre approved, offer accepted, cannot afford the transfer fees.

[3WA]

Just a side note, pension backed loans can only be used for renovations, transfer fees or anything to do with the property you own and live at. Not for buying a new car or boob jobs

Just out of interest, what happens if you default on a pension-backed loan? Do they take their money and you have to take the withdrawal tax hit? So you get good rates but a world of hurt if you default?

 

[falcon786]

Look on the internet for private sellers.

Any good sites you suggest?

 

[Venomous]

Any good sites you suggest?

Myroof, privateproperty, property24.
(in no particular order. Note agents also advertise there)
Use filters to set you criteria.

 

[zerocool2009]

You mean leave out the estate agent,how would one do this?
I'm currently looking to buy a house but surely people wouldn't just want random people knocking on their door asking to see their house.

Look on private property ... usually the person advertising is either the owner or an estate agent. Get in contact with the owner, and get the ball rolling. (ask when you can you view)

 

[zerocool2009]

I think PrivateProperty allow sellers to list their property privately? FNB are also looking at launching their idea of a property market that is cutting out estate agents, but I think it's only available to FNB customers.

There was a moerse big fight related to this. Owners can still do it. Private property told FNB to back off (cutting out the middle man), or FNB will lose business. Think it is called NAV (on the FNB app).

 

[KleinBoontjie]

Just out of interest, what happens if you default on a pension-backed loan? Do they take their money and you have to take the withdrawal tax hit? So you get good rates but a world of hurt if you default?

As it was explained to me, even when I resign my current job, they'll settle the backed loan first, before moving my money to new pension/provident. They however never mentioned the tax at withdrawal. That's something I'll have to take up with them. But I guess you'll have to pay tax, then. Will just have to plan around that. Maybe make sure you settle before resigning. There is insurance for retrenchment, though.

 

[shooter69]

Wow! How do you make such a huge financial decision without understanding all the costs? There are so many articles that explain it, simple Google would’ve given you all the answers.

We had a surprise when be bought our place this year. We had the money for the Attorney and knew there will not be transfer fees. We did not know about the banks bond attorney(I did research on all the costs and somehow missed this). Bang she slams down a R24k account in front of me.

At this moment I looked at my wife thinking "How the fffffff are we going to pay this". Did not tell the attorney we do not have the moolla.

Did some brain storming with my wife and we realized we can take a loan from her work which we have done a couple of years back as well. We did that and settled the R24k loan 5 weeks later with our bonuses.

It was risky because what if we did not get a bonus? Well it would have been a R800 installment for 3 years so we would have been able to manage just fine anyway.

It happens. Mistakes were made.

Wow! How do you make such a huge financial decision without understanding all the costs? There are so many articles that explain it, simple Google would’ve given you all the answers.

Do not let KB warriors like this with their "Wow ... how could you... " comments put you off

Maybe like someone else in this thread said look at getting some money from a policy or pension or sell vehicle that is not needed or something. Plans can be made.

A loan from someone that will not do credit checks maybe.... But only take a loan if you know you can afford it.

 

[Snyper564]

"A loan from someone that will not do credit checks maybe...." -_>Loan shark?

 

[yebocan]

We had a surprise when be bought our place this year. We had the money for the Attorney and knew there will not be transfer fees. We did not know about the banks bond attorney(I did research on all the costs and somehow missed this). Bang she slams down a R24k account in front of me.

At this moment I looked at my wife thinking "How the fffffff are we going to pay this". Did not tell the attorney we do not have the moolla.

Did some brain storming with my wife and we realized we can take a loan from her work which we have done a couple of years back as well. We did that and settled the R24k loan 5 weeks later with our bonuses.

It was risky because what if we did not get a bonus? Well it would have been a R800 installment for 3 years so we would have been able to manage just fine anyway.

It happens. Mistakes were made.


Do not let KB warriors like this with their "Wow ... how could you... " comments put you off

Maybe like someone else in this thread said look at getting some money from a policy or pension or sell vehicle that is not needed or something. Plans can be made.

A loan from someone that will not do credit checks maybe.... But only take a loan if you know you can afford it.

next time around you will be the wiser...! And always ask for a discount from both attorneys, ....if you do not ask, you will never get.

 

[shooter69]

next time around you will be the wiser...! And always ask for a discount from both attorneys, ....if you do not ask, you will never get.

I agree. Lessons learnt!

 

[surface]

Myroof, privateproperty, property24.
(in no particular order. Note agents also advertise there)
Use filters to set you criteria.

Take any site, very few owners prefer to deal directly regarding sales/rentals. This gives free rein to estate agents. I can understand in certain circumstances but most of the times, it is owner laziness/reluctance to have direct dealings with would-be buyers.

 

[neoprema]

They really should start putting this in flashing red on the bond pre-approval sites lol.
I was looking at a pre-approval the other day - got 2 of them for an awesome amount that i could easily repay with my salary.
Then worked out the transfer costs and realized its an insanely large number lol.

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

 

[zerocool2009]

They really should start putting this in flashing red on the bond pre-approval sites lol.
I was looking at a pre-approval the other day - got 2 of them for an awesome amount that i could easily repay with my salary.
Then worked out the transfer costs and realized its an insanely large number lol.

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

The moral of the story do your own homework first before aiming to high!

 

[Mike Hoxbig]

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

Whichever agent you spoke to is feeding you BS. I'm currently in the process of a subject-to, and have done it before.

The 2 transferring attorneys as well as your bond attorney will talk to each to ensure that both properties are lodged simultaneously at the deeds office, and the funds are released at the appropriate time.

I'll be funding the deposit, agents fees and attorneys fees from the sale of my property. Any decent attorney will ensure that the funds are distributed to all relevant parties, and you get whatever is left. If there's a shortfall, you will obviously be responsible for that.

My advice is that when you apply for a bond, request that your bond attorney also be your transfer attorney. It makes the process smoother as there is one less line of communication.

If you're with FNB you can get a 50% discount on your bond costs if you apply on nav and use one of their partner attorneys...

 

[neoprema]

Whichever agent you spoke to is feeding you BS. I'm currently in the process of a subject-to, and have done it before.

The 2 transferring attorneys as well as your bond attorney will talk to each to ensure that both properties are lodged simultaneously at the deeds office, and the funds are released at the appropriate time.

I'll be funding the deposit, agents fees and attorneys fees from the sale of my property. Any decent attorney will ensure that the funds are distributed to all relevant parties, and you get whatever is left. If there's a shortfall, you will obviously be responsible for that.

My advice is that when you apply for a bond, request that your bond attorney also be your transfer attorney. It makes the process smoother as there is one less line of communication...

Hmmm interesting, will try that.
Well i signed an OTP that did not have that clause already, but its subject to the bank that offered me the homeloan saying they will also take over the existing property if i keep it for investment/rental and i can draw money against that loan. Sounds rather complex to me.

if it doesn't work, my only option is to see if I can do a new OTP with the seller with a subject-to clause and get rid of the property i have now to free up that money.

 

[Tman*]

They really should start putting this in flashing red on the bond pre-approval sites lol.
I was looking at a pre-approval the other day - got 2 of them for an awesome amount that i could easily repay with my salary.
Then worked out the transfer costs and realized its an insanely large number lol.

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

Seems like you rich enough to get proper financial advice, why are you taking it from estate agents tho.

 

[Splinter]

They really should start putting this in flashing red on the bond pre-approval sites lol.
I was looking at a pre-approval the other day - got 2 of them for an awesome amount that i could easily repay with my salary.
Then worked out the transfer costs and realized its an insanely large number lol.

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

Aside from the thread necro, you are obviously talking a load of poo. Seriously.

 

[Lupus]

They really should start putting this in flashing red on the bond pre-approval sites lol.
I was looking at a pre-approval the other day - got 2 of them for an awesome amount that i could easily repay with my salary.
Then worked out the transfer costs and realized its an insanely large number lol.

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

That's BS, I bought a place 3 years ago where money from my old place was used for transfer fees and such.

 

[neoprema]

That's BS, I bought a place 3 years ago where money from my old place was used for transfer fees and such.

Was it actually stipulated that way contractually? Interesting if it was, I wasn't aware of that.

 

[Splinter]

They really should start putting this in flashing red on the bond pre-approval sites lol.
I was looking at a pre-approval the other day - got 2 of them for an awesome amount that i could easily repay with my salary.
Then worked out the transfer costs and realized its an insanely large number lol.

I could sell my current property because the amount owed is far less than the current value, but estate agents said its basically impossible these days to sign OTP's with people subject to your current place being sold because the transfer costs on the new property will be due long before the settlement of the current property.

So yeah, the moral of the story is when buying a house, be sure you have around R200-400k lying around doing nothing, cause u gonna need it.

So, what is the value of the house you were wanting to purchase when you said you need R200-R400k available for transfer fees?