Offer to purchase question

Arzy said:
I just went through the exercise in Johannesburg and based on the quantity surveyors calculations and trying to engineer the costs with the architect it would have been about 20% more expensive than the house I ended up buying before any unexpected extras etc.

I bought in the same estate I was considering building in. Erf sizes are almost exactly the same. House I bought is slightly larger than what I was going to build but 9 years old already.

Full process for the build was estimated at 12-14 months including plan approvals etc.
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Interesting.. house hunting at the moment and saw a house that has been left abandoned by owners. Walls, plumbing and electricity installed but nothing else.

Wonder if installing just fittings + painting would be cheaper than houses in the area. House is kak expensive as a shell already
 
I was wondering how are people able to take a bond for a house and rent it out for a higher price then the monthly bond costs?
 
Moepa said:
I was wondering how are people able to take a bond for a house and rent it out for a higher price then the monthly bond costs?
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In time, you will get to a stage where you buy CASH. Then your expenses are minimal, and smiling all the way to the bank!

Lets me explain ...

Buy property 1, get a tenant, and put all your rent IN (and still prepay your bond)
Buy property 2, same story
Buy property 3, same story
NOW, Buy property 4 CASH (and you have 4 incoming links (or rather tenants paying).

See it as a business!

AND AGAIN, I have said it 1000 times. If you make a loss, SARS will refund you your losses! So dont say the TAX MAN is ever NOT nice! They are actually
 
Moepa said:
I was wondering how are people able to take a bond for a house and rent it out for a higher price then the monthly bond costs?
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You will have to subsidise the rent shortfall from your own pocket but in a couple of years you will pass the threshold and start making a few Rands. The real value is when you sell that property again or if you keep it long enough to settle the bond.

See the monthly shortfall as a long term investment.
 
zerocool2009 said:
In time, you will get to a stage where you buy CASH. Then your expenses are minimal, and smiling all the way to the bank!

Lets me explain ...

Buy property 1, get a tenant, and put all your rent IN (and still prepay your bond)
Buy property 2, same story
Buy property 3, same story
NOW, Buy property 4 CASH (and you have 4 incoming links (or rather tenants paying).

See it as a business!

AND AGAIN, I have said it 1000 times. If you make a loss, SARS will refund you your losses! So dont say the TAX MAN is ever NOT nice! They are actually
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Would you not have to pay taxes on the rental income?
so say if you are 50% tax rate - a rental income of 14k take home 7k?
 
Moepa said:
Would you not have to pay taxes on the rental income?
so say if you are 50% tax rate - a rental income of 14k take home 7k?
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SARS see the OVERALL picture. So if you make a LOSS overall, no worries! :)

Lets say I make R50 000 rental, just make sure you LOSS are more than your income (as simple as that)
 
I have sold my house, and the attorneys confirmed transfer is happening on 28 Feb 2023. I have a few questions/assumptions about the settling of my bond with FNB on the transfer date.

1. I assume my last debit order date was 1 Feb 2023?
2. I assume the balance I see now on the bond that this month's interest must still be added and then settled?
3. I assume all payouts to relative parties on 1 March 2023?
 
Tjoker said:
I have sold my house, and the attorneys confirmed transfer is happening on 28 Feb 2023. I have a few questions/assumptions about the settling of my bond with FNB on the transfer date.

1. I assume my last debit order date was 1 Feb 2023?
2. I assume the balance I see now on the bond that this month's interest must still be added and then settled?
3. I assume all payouts to relative parties on 1 March 2023?
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And lets do a drum roll ... and the answers ....

  1. Debit order will go through until cancellation and should the debit order go through and cannot stop due to being in the billing process, a refund will be arranged;
  2. Interest is calculated on an outstanding balance daily, accrued monthly, so yes, interest should still be added until day of cancellation;
  3. Guarantees are payable same day or the next day, and finalization of the process is usually completed within 5 days of cancellation.
 
zerocool2009 said:
And lets do a drum roll ... and the answers ....

  1. Debit order will go through until cancellation and should the debit order go through and cannot stop due to being in the billing process, a refund will be arranged;
  2. Interest is calculated on an outstanding balance daily, accrued monthly, so yes, interest should still be added until day of cancellation;
  3. Guarantees are payable same day or the next day, and finalization of the process is usually completed within 5 days of cancellation.
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Thanks for the quick feedback, much appreciated!
 
Zuner said:
Say what !!
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When your bond hit the 7 year stage (of years left), all your prepaid is "gone", as in its a mission to borrow against it. Think the reason for that, the bank dont want customers with 3 years left, borrowing R2 000 000 (as an example), which makes sense.

And ps : Dont stress, clients will be informed before hand ;)
 
Tjoker said:
I have sold my house, and the attorneys confirmed transfer is happening on 28 Feb 2023. I have a few questions/assumptions about the settling of my bond with FNB on the transfer date.

1. I assume my last debit order date was 1 Feb 2023?
2. I assume the balance I see now on the bond that this month's interest must still be added and then settled?
3. I assume all payouts to relative parties on 1 March 2023?
Click to expand...

Do most banks not require a 90 day settlement confirmation. Otherwise you pay a penalty fee?
 
zerocool2009 said:
When your bond hit the 7 year stage (of years left), all your prepaid is "gone", as in its a mission to borrow against it. Think the reason for that, the bank dont want customers with 3 years left, borrowing R2 000 000 (as an example), which makes sense.

And ps : Dont stress, clients will be informed before hand ;)
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I have 18.5 years left, so plenty of time for me anyway.
 
Finally lodged today, hopefully no issues, ETA for transfer end of Feb or 1st week March.
 
hello all

i didnt want to start a new thread but thought il ask here

does a block of flats have to have a company as the body corp with owners as members and trustees

a buddy of mine owns a flat where some owners are running the BC. Now he says they only get a statement of payment nothing else

what are the laws/rules around this
 
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