Offer to purchase question

RonSwanson

RonSwanson

Honorary Master
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May 21, 2018
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RedViking said:
Both. I will need the loan to buy a caravan. .... sorry, let's use modern terms here please.

A tiny home.
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Home is where the heart is.
You got a good woman? She will make a good home for you, no matter where or how tiny.
The size of your home does not matter. The heart of your woman does.
 
T

thehuman

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RedViking said:
Got notified today by our landlady the place we have been renting for the last 7 years they want to sell. She was an awesome landlady and our rent was pretty awesome, specially because I have a massive family financial burden to carry and excessive monthly legal fees. Will be lucky if we find something similar to it for even 3 or 4K more.

So now..... she is giving us 2 weeks to decide if we want to buy here (private) before she get an agent involved.

I am sure I can ask her for a bit more time to decide.

But so much to consider.

1. Will I get a loan. (I have been working online and at home since school. Never got a pay slip. Don't have debt and just a credit card. Everything else including car was cash. I do pay provisional tax.)

2. Will MAYBE (if I get a loan) be able to afford it at our current interest (Assuming 7% and not more) and will probably pay about 3K more than my rent. BUT, if the interest rate goes up, or my business ventures fail, I'll be screwed.

3. I am also not sure if I want to buy a permanent property in this location. The riots got me very scared and I was pinned down, couldn't even go out our complex gate. Not sure how this will effect the property value over time a well. Don't think it is in the best location as it is on the outskirts of the suburb.

I love the house itself and the yard is perfect for us. As a self proclaimed architectural designer I have had many awesome ideas to improve it and what I want to do. I will also do everything myself as I am good with carpentry.

4. The complex itself got louder over time and I don't think place is well maintained and maybe even tight on funds. Unit also has moisture issues etc.

5. But I have been living here for 7 years, and if it wasn't mine and paying rent I can live here for another 7 years, although I have lately been thinking of moving to the Midlands and retire there at 30. Lol, okay, assuming my business venture doesn't fail and my business partners do not screw me over.
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If you could consistently put away the r3k extra in past years maybe go for it .
If you need to move out put away that 3k for a deposit.
If house markets improve you could always sell for a profit , but if you can't make payments for some reason you screwed if bank need to take it back .
 
zerocool2009

zerocool2009

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Messages
8,832
Viking, be honest to yourself, ask the question will you be ok to be locked in for years?

Buying property is fun, but it can be a nightmare too!

Do the sums, and apply for a bond! You have nothing to lose what the bank offer
 
M

marysms

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Jan 22, 2021
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45
RedViking said:
Got notified today by our landlady the place we have been renting for the last 7 years they want to sell. She was an awesome landlady and our rent was pretty awesome, specially because I have a massive family financial burden to carry and excessive monthly legal fees. Will be lucky if we find something similar to it for even 3 or 4K more.

So now..... she is giving us 2 weeks to decide if we want to buy here (private) before she get an agent involved.

I am sure I can ask her for a bit more time to decide.

But so much to consider.

1. Will I get a loan. (I have been working online and at home since school. Never got a pay slip. Don't have debt and just a credit card. Everything else including car was cash. I do pay provisional tax.)

2. Will MAYBE (if I get a loan) be able to afford it at our current interest (Assuming 7% and not more) and will probably pay about 3K more than my rent. BUT, if the interest rate goes up, or my business ventures fail, I'll be screwed.

3. I am also not sure if I want to buy a permanent property in this location. The riots got me very scared and I was pinned down, couldn't even go out our complex gate. Not sure how this will effect the property value over time a well. Don't think it is in the best location as it is on the outskirts of the suburb.

I love the house itself and the yard is perfect for us. As a self proclaimed architectural designer I have had many awesome ideas to improve it and what I want to do. I will also do everything myself as I am good with carpentry.

4. The complex itself got louder over time and I don't think place is well maintained and maybe even tight on funds. Unit also has moisture issues etc.

5. But I have been living here for 7 years, and if it wasn't mine and paying rent I can live here for another 7 years, although I have lately been thinking of moving to the Midlands and retire there at 30. Lol, okay, assuming my business venture doesn't fail and my business partners do not screw me over.
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I think you have answered yourself, you have had some contracts for the same house for the past 7 years, you wouldn't mind renewing them for the next 7 years, the only difference here with a bond is that you sign a longer contract, either way you will need a place to stay and even if you sign a 20 year bond who says you have to pay it in 20 years, remember the repayment amount stay within a certain range over time and chances are that in the next few years your income will increase and you might be able to pay a little more on your bond and reduce the bond term.

As advised by most, just try getting a bond. Even if you do not end up getting the bond, it will be a good financial literacy experience, it will make you think about some financial management aspects that you might have not cared about in the past.
 
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RedViking

RedViking

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marysms said:
I think you have answered yourself, you have had some contracts for the same house for the past 7 years, you wouldn't mind renewing them for the next 7 years, the only difference here with a bond is that you sign a longer contract, either way you will need a place to stay and even if you sign a 20 year bond who says you have to pay it in 20 years, remember the repayment amount stay within a certain range over time and chances are that in the next few years your income will increase and you might be able to pay a little more on your bond and reduce the bond term.
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Yeah, I worked out if I work well with my money. I can push in an extra 50K every year. But again, life is unpredictable and I have learned not to base decisions on best case scenarios.

The biggest then is also, I am not sure I want to live here the next 20 years, or even 10 years. I was hoping to have more time to think about this and the practical implications of moving away from my family (to me good, to them bad). But I can understand the owner would like to sell as soon as possible and not wait for me to make up my mind.
 
TheBadMadMan

TheBadMadMan

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Hmmm, I have a thought about @RedViking situation.

@RedViking if your landlord is really awesome, get her to renew your lease at the current rate for the next X years. So if she sells, the contract changes to the new landlord you are still under agreement until it's up for renewal?

Ag I doubt I'm considering all the risks though.

Good luck.
 
RedViking

RedViking

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TheBadMadMan said:
Hmmm, I have a thought about @RedViking situation.

@RedViking if your landlord is really awesome, get her to renew your lease at the current rate for the next X years. So if she sells, the contract changes to the new landlord you are still under agreement until it's up for renewal?

Ag I doubt I'm considering all the risks though.

Good luck.
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That would have been awesome. But any agent or landlord taking over is going to push us into the system I am afraid. In the last 7 years our rental has probably increased from what it was to what it is now by about R1500. So that is less than 2or3% a year. In fact, depending on what landlord comes back with, it might even be cheaper to pay a 20 year loan than whatever rent new owners will charge us.
 
Big-Mac

Big-Mac

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Nov 24, 2013
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368
Mine was lodged this morning after a long wait for the rate assessment figures and rates clearance certificate, durban municipality has a huge backlog and had to use my connects to get it done, how long does the PMB deeds office take nowadays?
 
Sir Bob

Sir Bob

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I am really not enjoying dealing with estate agents.
I have found a house I like and have even gotten an engineer to come have a look. The engineer noted a few issues all fixable if the selling price is reasonable.

The estate agent has subsequently sent me what she calles annexure a which lists any issues with the property. The only issue that the owner has ticked was damp in the store room he did not mention the hole in the ceiling nor the cracks in the wall. When I asked the estate agent she said that becuase I saw those issues they are not listed.
I am just confused what gets disclosed and what does not, nor have I found the estate agent to be helpful.
If I make an offer it will be with the predicition that there are other hidden issues and make sure I have a plan to pay for what is required,
 
RonSwanson

RonSwanson

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May 21, 2018
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15,327
Sir Bob said:
I am really not enjoying dealing with estate agents.
I have found a house I like and have even gotten an engineer to come have a look. The engineer noted a few issues all fixable if the selling price is reasonable.

The estate agent has subsequently sent me what she calles annexure a which lists any issues with the property. The only issue that the owner has ticked was damp in the store room he did not mention the hole in the ceiling nor the cracks in the wall. When I asked the estate agent she said that becuase I saw those issues they are not listed.
I am just confused what gets disclosed and what does not, nor have I found the estate agent to be helpful.
If I make an offer it will be with the predicition that there are other hidden issues and make sure I have a plan to pay for what is required,
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Best to list all issues, as well as which party undertakes to do what, as a condition of the OTP.
 
T

Topdoggdbn

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Joined
Mar 24, 2009
Messages
734
Big-Mac said:
Mine was lodged this morning after a long wait for the rate assessment figures and rates clearance certificate, durban municipality has a huge backlog and had to use my connects to get it done, how long does the PMB deeds office take nowadays?
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@Big-Mac
Hows some connects please. waiting since May for rates assessment.
 
Mike Hoxbig

Mike Hoxbig

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Sir Bob said:
I am really not enjoying dealing with estate agents.
I have found a house I like and have even gotten an engineer to come have a look. The engineer noted a few issues all fixable if the selling price is reasonable.

The estate agent has subsequently sent me what she calles annexure a which lists any issues with the property. The only issue that the owner has ticked was damp in the store room he did not mention the hole in the ceiling nor the cracks in the wall. When I asked the estate agent she said that becuase I saw those issues they are not listed.
I am just confused what gets disclosed and what does not, nor have I found the estate agent to be helpful.
If I make an offer it will be with the predicition that there are other hidden issues and make sure I have a plan to pay for what is required,
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That works to your advantage.

In my OTP, I added a clause that any defects not declared by the owner on the property condition report, is subject to repair at the owner's cost.

Do not declare any defects that you've found, as you paid for an engineer to come out. Be sure to have the engineer date his report so they can't claim the defects occurred after the fact.

Also don't let the agent get away with any assumptions about stuff that you should have seen. It all needs to be declared and in writing. You can then negotiate who pays for what...
 
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