Offer to purchase question

zerocool2009 said:
I would personally apply for a bond, putting MAX 10% down (to see what the bank offers).
If he gets a bond granted, registered, I would just prepay the bond (putting all available cash into it).

Sadly, if he stops paying the bank would take the house back, as the bank own's it until its paid off !

So he must make SURE he can afford it, with all the extra costs !
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Yes he knows that part that's why he wants to put down as minimum as possible but also he needs his bond repayment to be low as possible and only way is to take out that +-R2m bond and then put in the cash to make his bond repayment around R8k-10k

but what happens mostly in the case of him not being able to afford. If he puts the cash in does he still owe the bank R1.8m (10% deposit) or would he owe the bank R1m. So if he owes the bank R1m the bank would sell for as less as possible.

If he were to sell on his own he would make up his cash and pay the bank back the rest
 
If he cant afford it, it would be dumb to take the chance (as its risky). As banks do a full recon of income vs expenses.

Dont think negative now ! Its worst case what you are describing.

Putting the 1KK down, it would mean that your debit order is also 50% less vs compared to only 10%. (as the bank would lock that money in)

What I have learned in life, put as little down to make sure you can re-use later if needed.

If your friend now things wont work out (this is at a minimum a 20 year contract) ! He will be bold and grey worrying if the bank takes it back ... worse case)
 
zerocool2009 said:
If he cant afford it, it would be dumb to take the chance (as its risky). As banks do a full recon of income vs expenses.

Dont think negative now ! Its worst case what you are describing.

Putting the 1KK down, it would mean that your debit order is also 50% less vs compared to only 10%. (as the bank would lock that money in)

What I have learned in life, put as little down to make sure you can re-use later if needed.

If your friend now things wont work out (this is at a minimum a 20 year contract) ! He will be bold and grey worrying if the bank takes it back ... worse case)
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I dont think anyone can really predict for 20 years

he can afford the payment if the bond was R1m

he is more worried in the case that if he does take the R2m and puts down a R1m in cash how much will the bank sell for in the worst case scenario

cause in a normal world if he owes the bank that R1m he can sell for R2m and give the bank that R1m for example that he borrowed
 
I.am.Sam said:
I dont think anyone can really predict for 20 years

he can afford the payment if the bond was R1m

he is more worried in the case that if he does take the R2m and puts down a R1m in cash how much will the bank sell for in the worst case scenario

cause in a normal world if he owes the bank that R1m he can sell for R2m and give the bank that R1m for example that he borrowed
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Sadly it doesnt work like that. If you put R1.7KK down and cant afford a R100 000 bond, and the bank takes it back, its ultimately the bank's house.

My honest advice, if he worries ... rather rent
 
No, the bank will take the house and sell it. They will then take what is still owed to them (which will also likely include fees) and then give the rest to your friend. Just keep in mind the bank will likely just auction it so they might not sell it for its true value.

So if owe them 100k and they sell it 1.8kk he will get his 1.7kk back. If they sell it for more he will score more if they sell for less he will get less then his original deposit amount back.
 
The
Tjoker said:
So now that the property is my name, what is my next step here? Do I need to go to City of Cape Town to sort out Municipal Account? Anything else I need to do?
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The City of Cape Town's system is fully automated, the attorneys would have done everything that needs to be done. You don't have to do anything.

You may receive an account or two still in the previous owner's name and then receive the new account backdated to date of registration in your name. The Deeds Office and Municipality is not completely in sync.
 
bokka1 said:
The

The City of Cape Town's system is fully automated, the attorneys would have done everything that needs to be done. You don't have to do anything.

You may receive an account or two still in the previous owner's name and then receive the new account backdated to date of registration in your name. The Deeds Office and Municipality is not completely in sync.
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Not all of city of cape town areas have electricty supplied by the city, might have double check with eskom with you are in eskom area. Eskom might just pull out a random bill out of nowhere if you on postpaid.
 
Gtx Gaming said:
Not all of city of cape town areas have electricty supplied by the city, might have double check with eskom with you are in eskom area. Eskom might just pull out a random bill out of nowhere if you on postpaid.
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I have prepaid electricity, so not a problem there, more the rates, taxes and water....
 
Toxxyc said:
Still need an electricity account. The meter needs to be put on your name.
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If it is City supplied then it transfers automatically. At the bottom of your bill it shows much units you bought for the month.
 
UYScuti said:
No, the bank will take the house and sell it. They will then take what is still owed to them (which will also likely include fees) and then give the rest to your friend. Just keep in mind the bank will likely just auction it so they might not sell it for its true value.

So if owe them 100k and they sell it 1.8kk he will get his 1.7kk back. If they sell it for more he will score more if they sell for less he will get less then his original deposit amount back.
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ok perfect so i think this is what we has worried about

if the bank sells for that 1.8m and he owes 100k he will get back the rest
 
Hi fellas.

Here is my situation that I need help with.

This house has been on the market since February this year. Last month (April) the price went up by about ten (10) percent.

I did a bit of research on the house itself and found out that it was listed for renting since October last year before eventually being put up for sale.

It is a lovely place. I went to view and liked what I saw. Of course, I wasn't about to reveal my enthusiasm. The painting (exterior) needs some work, other than that, it was to my liking. The house is in an estate.

I am willing to put in an offer, however, the offer I am thinking of is ten (10) percent off of the original price before the price increase.

I have requested a second viewing and also asked to bring an inspector/structural engineer.

Is my idea of the lower offer reasonable or can I bargain further?
 
I would offer 10% under the original price. Asking MORE in a time like this is idiotic.
 
Dups! said:
I am willing to put in an offer, however, the offer I am thinking of is ten (10) percent off of the original price before the price increase.
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I would have done the same, and settled for around 6-7% off the original price.

You've got nothing to lose. They're the ones who need to make a sale.

If it goes to another sucker then so be it. But don't be desperate for a place. You'll eventually find something...
 
Mike Hoxbig said:
I would have done the same, and settled for around 6-7% off the original price.

You've got nothing to lose. They're the ones who need to make a sale.

If it goes to another sucker then so be it. But don't be desperate for a place. You'll eventually find something...
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Thanks Mike!

One thing I won't do is go desperate. I really like the house... quite a lot, but I will not go overboard.
 
Dups! said:
Hi fellas.

Here is my situation that I need help with.

This house has been on the market since February this year. Last month (April) the price went up by about ten (10) percent.

I did a bit of research on the house itself and found out that it was listed for renting since October last year before eventually being put up for sale.

It is a lovely place. I went to view and liked what I saw. Of course, I wasn't about to reveal my enthusiasm. The painting (exterior) needs some work, other than that, it was to my liking. The house is in an estate.

I am willing to put in an offer, however, the offer I am thinking of is ten (10) percent off of the original price before the price increase.

I have requested a second viewing and also asked to bring an inspector/structural engineer.

Is my idea of the lower offer reasonable or can I bargain further?
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how much does an engineer charge and how important is this person

im also looking at putting my flat for sale and buying a house but prices are still crazy so dont want to rush
 
I.am.Sam said:
how much does an engineer charge and how important is this person

im also looking at putting my flat for sale and buying a house but prices are still crazy so dont want to rush
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I am waiting for two other quotations, the one I have with me is for R7 300.

Edit: I took this to a friend of mine who is an estate agent and he told me the price was high. He said anything between R3 500 to R5 000 is reasonable.
 
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Guys, we are looking to sell in a difficult area.
One option we are considering, to make a potential sale more attractive is offering to pay the transfer fees of the buyer.
Any tips on doing something like this?
 
Just put it in the OTP. They're your (the seller's) lawyers, so yes, it's definitely possible.
 
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