Offer to purchase question

I.am.Sam said:
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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The owners are the members of the Body Corporate, they don't necessarily have to appoint a Managing Agent to handle their affairs.
 
I.am.Sam said:
ok perfect

can my buddy request financials and stuff cos they havnt shared anything with them

and what can be done if they decline
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The trustees and/or managing agent should not withhold this information. Have a look at the Regulation on Sectional Title Scheme Management Act below, specifically Section 26. (1) detailing records that have to be kept and Section 26. (2) stating that records have to be made available to members or registered bond holders. Your buddy should quote these Sections of the Act to them should they give him any hassle.

https://csos.org.za/wp-content/uplo...n-Sectional-Titles-Schemes-Management-Act.pdf

If they insist on not sharing the information, your buddy would have to launch a CSOS application against the trustees of the BC. The relief he would seek from CSOS would be in terms of Sections 39. (7) (a)

https://csos.org.za/wp-content/uploads/2023/02/CommunitySchemesOmbudServiceAct.pdf
 
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Thought I would ask on here, I put on OTP on a second house. Went with a bond originator...they been taking some time to get good offers, I thought I should apply with Investec (they cant) and investec came back with a great offer...am I under any obligation to stay with the bond originator (those offers are below what I am wanting)
 
When I bought a place I got 3 (slow) offers from a bond originator and got a better offer directly with my bank. I simply told the lady form the Bond Originator that I had a better offer and that was the last I heard from her.
 
binloud said:
Thought I would ask on here, I put on OTP on a second house. Went with a bond originator...they been taking some time to get good offers, I thought I should apply with Investec (they cant) and investec came back with a great offer...am I under any obligation to stay with the bond originator (those offers are below what I am wanting)
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have you accepted any of them?
 
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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Then you are not using gearing. Rather use the cash to put 20% deposit on 5 properties vs 100% on only one property.
 
A lekker pic:
Screenshot_2023-04-05-18-51-49-065_com.sbg.mobile.phone.png
It's a pity that I overpaid them with R790.72. That's because my settlement figure on the last payment did not take into account their debit order the next day. Will pull it out soonest.
 
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RonSwanson said:
Then you are not using gearing. Rather use the cash to put 20% deposit on 5 properties vs 100% on only one property.
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Property is all about risk. And how to minimize the damage (if interest rates go up... and if they stand empty).

So whats your call? 20% on 5 still a better option than to drip feed and buy every 2 years a new one?
 
zerocool2009 said:
Property is all about risk. And how to minimize the damage (if interest rates go up... and if they stand empty).

So whats your call? 20% on 5 still a better option than to drip feed and buy every 2 years a new one?
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If the property market is worth investing in (i.e. it will increase in value in the next 5-10-15 years), then by all means use gearing. You get to your goal faster.

What you are now talking about is risk, and that gets taken care of by diversifying your portfolio. Don't put everything into property, even if your properties are in different countries.
 
RonSwanson said:
If the property market is worth investing in (i.e. it will increase in value in the next 5-10-15 years), then by all means use gearing. You get to your goal faster.

What you are now talking about is risk, and that gets taken care of by diversifying your portfolio. Don't put everything into property, even if your properties are in different countries.
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Gearing is assuming a different kind of risk though. Some people prefer not to use debt.

If you're buying a property cash, then you're probably fairly comfortable already.
 
I am looking at a house that was built out of what looks like to be plaster bricks, but they never plastered it, basically treated it as facebrick. Either that or it is just one ugly and rough brick. I can imagine this would have attracted a lot of moisture. Is it still possible to seal it and plaster it or better to avoid?
1682000787563.png
 
RedViking said:
I am looking at a house that was built out of what looks like to be plaster bricks, but they never plastered it, basically treated it as facebrick. Either that or it is just one ugly and rough brick. I can imagine this would have attracted a lot of moisture. Is it still possible to seal it and plaster it or better to avoid?
View attachment 1511933
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I know nothing about building but I remember seeing lots of houses like that where I grew up in Pretoria.
 
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