Home loans dry up

got rid of an estate agent, it was a sole mandate, only signed for a month. The second estate agent, we didnt even sign the contract, and got rid of them...would have signed for a month as well.

We have our third agent who seems to be pretty ok. Problem is that there is a dip in sales. We can only get the new bond processed on condition that we sell our current property....the price currently includes the agents commission. If it doesnt get sold soon, we will probably sell it privately at a cost of the amount outstanding on the bond.:(
 
killadoob said:
i think renting is the worst thing a person can do

i know ppl who have rented for years, its basically throwing your money down a drain

your paying of someone's house/flat whateva and at the end of the day you leave there with nothing but a ton of money into someone else's house

rather buy something even if its smaller than you need
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Yes I agree paying R3200 a month on someone elses bond sucks big time.

This will be my last year of renting hopefull and then I will take the plunge. Might be a little to late.
 
McSack said:
Dude you could have been out of this at any time during the mandate if you were unhappy. All you do is send a letter to the head office of the company (or the agency principle) stating that you are
a) unhappy with their service,
b)the reasons for your unhappiness and
c) that you are cancelling the mandate with immediate effect.

The mandate is basically a contract of service and no agency is going to try force an unhappy seller to stick with them for the duration of the mandate. And if they try get shirty with you, get the Estate Agency Affairs Board involved.
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Dude, I even tried an attorney. With Seeff that thing is air tight, and if I cancel it, and some other agent sells the place in the original "mandate" period, seeff can lay claim of commission against the new sale.

I also had them for just a month at the beginning, and when they could not produce a sale at the end of the month, I did not renew the mandate, 5 days later they knocked on the door with an offer.....BUT the guy still needs to sell he's place, so we gave them 3 months, and after 3 months, nothing, so at the end of the week, their sole mandate is done, and its time to start afresh, maybe rent it out
 
If we have more interest rate hikes people are gonna dump their properties and fancy cars. The big going for broke sale of 2008 is coming!!

Watch "on show" on summit on the weekends during the next few months. I've already started to see the R3M homes in my hood start coming down to R2,5M. A lot of people are starting to try to dump their 2nd and 3rd cars!!!

Think about it. A R3M house and two cars each valued at sa R400K. That's easily R50K a month. One percent interest rate hike R5000-00. Never mind the rest of other debts (food and petrol, cellphones, furniture, w&l, rates, telskommel, adsl...kids)!! A lot of executives are k@king right now and can't even make it on R100K a month and that's pretty average for a lot of young nouveu riche exec's in Bryanston.
 
WiseCrack said:
This will be my last year of renting hopefull and then I will take the plunge. Might be a little to late.
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Its really a tough decision to make.

In 1998, I rented a 1 bed townhouse for R1700/pm. The landlord offered to sell it to me for 80K because of high interest rates and I thought "No ways, overpriced!". (Now worth 600K)

In 1999, I rented a 2 bedroom townhouse in Northcliff Ext 24 (one of the best views in JHB) for R2500. The landlord offered to sell it to me for 200K and I thought "No ways, overpriced!". (Now worth 1.2M)

In 2001, I bought a 2 bedroom Townhouse with a garage for 175K. I thought it was overpriced. (Now worth 650K)

Everyday, I wish I could shoot myself for not buying property early!!!
 
Yes dammit!

I was staying in the police barracks in PE after police college from 1994-1997.

Moved into my finance's place she bought and thought I was set.

Lol things did not work out as planned and I started renting ,because to rent was cheap at the time.

Wow now house prices are crazy! I am still planning on buying at the end of Feb when my lease expires. Luckily my car will be paid up by then.
 
Land is finite.

What seems expensive today is cheap tomorrow.

However I think the situation may be slightly different now from the rapid growth we have seen since 1999/2000, but one can never say for sure.
At least the interest rates were stable for several years while we had the housing market boom.
If The Reserve Bank could just keep interest rates in check like they did the growth will continue. At the moment we may still be in for more interest rate hikes which I think will certainly level the prices off if they haven't done so already.

The thing is, land is finite.
I doubt we will ever see a negative growth in property prices. Perhaps a year or two of stagnation before it continues it's upward trend.
 
dlk001 said:
Everyday, I wish I could shoot myself for not buying property early!!!
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don't take it to heart dlk001, no use crying after spilt milk. I reckon you still one up on many people. I feel the easy money has already been made on this property wave. I bought plots a few years make for X amount. They are now worth 10X. If only I had bought many more, I would not need to work.

Anybody got a spare crystal ball to rent? <LOL>
 
BTTB said:
I will agree that house prices have levelled off now. If they were increasing marginally before 1st June 2007, that has ended and we have entered a Bearish Stage in the House Market where the Buyers will have the upper hand.
This of course will depend on location.
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This law will basically prevent a lot of people who would have been able to buy a home to never own property. It will in other words create a vacuum because you still have to stay somewhere. I believe rich Arabs are buying up houses in Brakpan and other places. If the ANC makes it impossible for people to buy their own property forcing them to rent then won't this create an oppertunity for rich individuals from oversees to buy these properties and rent it out. The resulting rental market will be an even worse form of exploitation. The ANC is distoring market forces and interfering with the freemarket. In America if you can't pay they take your home - that simple. One can only wonder about the unintended repurcussions of this latets government folly.
 
captainwifi said:
The ANC is distoring market forces and interfering with the freemarket. In America if you can't pay they take your home - that simple. One can only wonder about the unintended repurcussions of this latets government folly.
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I don't think the law is bad. The banks have been lending recklessly for quite a while. What probably should have happened is that it should have been phased in somehow. It also did not help with the banks going crazy giving out Credit Cards leading up to 1 June. FWIW, if I were gov of the reserve bank, I would have upped the Bank lending multiplier and that would have stopped the banks in their tracks instead of going crazy with interest rates and then changing the law.
 
This law was passed around a year ago. Some parts were implemented soon after the passing of the law while the full provisions were delayed until June 2007 to allow those involved in the credit industry time to get ready. This is overall a good law and long overdue.

How is lending someone money they cannot afford to pay back, then repossessing their house or other items purchased with the money they borrowed beneficial to anyone other than the creditors? Banks weren't bothering to exercise due diligence because they win either way. In the past they have even been so crooked as to sell people's homes for barely more than the amount still outstanding on the loan. Perhaps even worse were the loan sharks at furniture stores.
 
noxibox said:
This law was passed around a year ago. Some parts were implemented soon after the passing of the law while the full provisions were delayed until June 2007 to allow those involved in the credit industry time to get ready. This is overall a good law and long overdue.

How is lending someone money they cannot afford to pay back, then repossessing their house or other items purchased with the money they borrowed beneficial to anyone other than the creditors? Banks weren't bothering to exercise due diligence because they win either way. In the past they have even been so crooked as to sell people's homes for barely more than the amount still outstanding on the loan. Perhaps even worse were the loan sharks at furniture stores.
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I agree with you and feel the banks should have phased this in. But when they immediately closed all borders, a knee jerk reaction started, and me trying to sell my house, cause I dont live there anymore is now caught in this wave, and will have to wait it out (and pay my mortgage and rent every month)
 
I think you are looking at this from the wrong side. Apparantly this law was introduced to help the people who have been wronged in the past concerning interest rate etc.
But the banks are actually smiling. A lot of people will be forced to take 25 - 30 year bonds in order to have a smaller premium. The result being that now we will be paying a lot more interest. I don't even want to do the sum.
If you can afford to buy property, buy!!!! It is never to late. Don't wait for your lease to expire. Buy!!!
I was an estate agent for 5 years. I never took a sole mandate on a property. And I would never advise someone to give a sole mandate to an agent.
I reality, if they have/don't have a sole mandate, they will give the same amount of attention to selling your house - in the end they get the same commission.
 
Angelface said:
I think you are looking at this from the wrong side. Apparantly this law was introduced to help the people who have been wronged in the past concerning interest rate etc.
But the banks are actually smiling. A lot of people will be forced to take 25 - 30 year bonds in order to have a smaller premium. The result being that now we will be paying a lot more interest. I don't even want to do the sum.
If you can afford to buy property, buy!!!! It is never to late. Don't wait for your lease to expire. Buy!!!
I was an estate agent for 5 years. I never took a sole mandate on a property. And I would never advise someone to give a sole mandate to an agent.
I reality, if they have/don't have a sole mandate, they will give the same amount of attention to selling your house - in the end they get the same commission.
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Thanks for the advice, all the way from klerksdorp, just drive over to potch and beat those %%^&*( from seeff up will you.

Dont worry, I am not ever taking a sole mandate again. I am thinking of putting my house in the market for a little while longer, and then if nothing happens, I'll start renting it out, maybe extend the bond, so that I have more cash available, and put more in my bond so to offset the longer period
 
Luckily in Potch you have the advantage that the rental income you can receive will most probably cover your premium. In what area in Potch do you live?
We just had the same problem with Pam Golding in Fochville. Gave them a (my husband gave them) sole mandate, and when we received the papers the date was changed.
Just remember if you sole mandate has run it's course, make sure that the buyer is not someone who was introduced by Seeff to your property. Otherwise you will still be liable for commission. I think for the next three months that rule will be applicable.
If I may ask, why are you selling? Are you relocating to another town?
 
Angelface said:
Luckily in Potch you have the advantage that the rental income you can receive will most probably cover your premium. In what area in Potch do you live?
We just had the same problem with Pam Golding in Fochville. Gave them a (my husband gave them) sole mandate, and when we received the papers the date was changed.
Just remember if you sole mandate has run it's course, make sure that the buyer is not someone who was introduced by Seeff to your property. Otherwise you will still be liable for commission. I think for the next three months that rule will be applicable.
If I may ask, why are you selling? Are you relocating to another town?
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Hi

My old house is in dassierand, close to the university(so renting out is an option for me, although students destroy everything).

I'm selling cause me and the wife do not live in potch anymore, moved to centurion at the end of march, so each month I have to pay my bond as well as rental in the new place.

I am not really interested in the buyer, because of him, i have been dragged around for 3 months now. So in my present state of mind, he will never own that house

But luckily....tomorrow.....The sole mandate is over!!!!!!!!
 
Angelface said:
A lot of people will be forced to take 25 - 30 year bonds in order to have a smaller premium. The result being that now we will be paying a lot more interest. I don't even want to do the sum.
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30 year mortgage is basically triple the purchase price. Very ugly. Many people are taking 30 year mortgages now because the interest rates have been increased. A home that cost R350,000 in the late 90s can now easily fetch a million or more. As time goes by it is likely that fewer and fewer people will ever be able to buy their own home.
 
That is so true. Interest rates may go up again :-( , but property is one of the best investments you can make. I think the new credit act will ruffle a few feathers, but soon everything will settle down and business will go on as usual. In the end it is better to buy something you really can afford, and not something that you would like that could be "bo jou vuurmaakplek."
I hope this act will have the positive influence as it was meant to be.
 
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