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

[Park@82]

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.

200k-400k? What is the purchase price in order to get to these amounts?

 

[Splinter]

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.

Ok, you are obviously trolling and looking for a reaction. No bank will do this.

 

[neoprema]

Ok, you are obviously trolling and looking for a reaction. No bank will do this.

Can someone who's capable of a proper conversation reply? If you don't agree don't answer.

 

[Splinter]

Can someone who's capable of a proper conversation reply? If you don't agree don't answer.

Whether I am capable or not, you still do not substantiate anything you say.

 

[WesleyDB]

Get a personal loan, then once the transfer goes through get a home renovation loan added to your bond and use that money to pay of the personal loan.

 

[ic]

Can someone who's capable of a proper conversation reply? If you don't agree don't answer.

If it's conversation that you want, you need to entertain opinions that differ from your own, otherwise you will end up having a rather boring conversation with yourself.

 

[Gozado]

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.

I'm interested in understanding how the bank would take over the propery you already own, but you'd still be an owner and collecting rent, and how that would enable you to draw money. Do you mean you'd be remortgaging your existing property to fund the new purchase? If so, on what terms?

Could you please post the relevant clauses from the OTP you signed, here? Thanks.

 

[Lupus]

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

When you sign the OTP you put things in like, on condition of sale of old place, also the money for the old house came in way before the transfer fees for the new place were needed.
Also not sure where you need 200 to 400k, at most it would probably be 200k for all the lawyers fees for a really expensive place.

 

[Jehosefat]

When you sign the OTP you put things in like, on condition of sale of old place, also the money for the old house came in way before the transfer fees for the new place were needed.
Also not sure where you need 200 to 400k, at most it would probably be 200k for all the lawyers fees for a really expensive place.

I'm in the process of buying a place for R4.1m. Transfer duty and lawyers fees are R325k. So yeah, can definitely get above R200k. Not to mention all the additional costs like moving, rates and levy clearance amounts and deposits, and compliance certificates for the place I'm selling etc. Add all that together and I've fronted very close to R400k excluding the deposit on the new place.

 

[neoprema]

I'm in the process of buying a place for R4.1m. Transfer duty and lawyers fees are R325k. So yeah, can definitely get above R200k. Not to mention all the additional costs like moving, rates and levy clearance amounts and deposits, and compliance certificates for the place I'm selling etc. Add all that together and I've fronted very close to R400k excluding the deposit on the new place.

I hear you!

 

[jezzad]

Some figures from my first property purchase about a year ago

House cost - R2,6mil
Bond approval - R2,6mil
Transfer duties - R180 000
Legal fees - R16 000

Luckily we had some cash saved up, estate agent told us about the transfer fees but not the legal fees for bond registration.

Sent about 200k in the first 6 months painting, repaving, extra bits of furniture etc..

6 months after paying the bond had to do a complete reapplication for an additional 300k for some renovation work. This was even though we had been pre approved for the additional amount when we did the application.

So yeah plenty hidden costs that aren’t exactly 100% clear up front