Offer to purchase question

RonSwanson said:
It has been mentioned before, but far too important not to repeat: In a sectional title scheme, always get hold of, and study, the title deed and BC documents:





theadvisory.co.za

Tips for buying a flat | Sectional title advice

Ané discusses two tips for buying a flat and what to look out for when purchasing a unit in a sectional title scheme.
theadvisory.co.za theadvisory.co.za
Click to expand...
Parking is ALWAYS an issue in complexes.

That and the guys who put signs up

"No smoking allowed in this area or buildings adjacent to unit X. Thanks for your consideration."

Make sure OTP specifies that you will be allowed to smoke anywhere and whatever you want.
 
McGuywer said:
Good advice @RonSwanson
Click to expand...
Credit goes to Ané de Klerk, she's very bright.

1M9A2541-scaled.jpeg
 
It's worth noting that this is a hard problem. When I bought my first flat, the BC's finances looked decent, but I discovered later that the trustees were staying in budget simply because they were neglecting some maintenance. Part of the issue is that the only people willing to actually get involved were doddery old folks, in fact two of the three of them passed away shortly after I bought in.

Long story short I got involved in the BC and it was an arduous (and expensive) process to get maintenance back on track. This is unfortunately the reality in a sectional title scheme - if you want to be sure that things are done properly, you pretty much need to get involved.
 
newby_investor said:
It's worth noting that this is a hard problem. When I bought my first flat, the BC's finances looked decent, but I discovered later that the trustees were staying in budget simply because they were neglecting some maintenance. Part of the issue is that the only people willing to actually get involved were doddery old folks, in fact two of the three of them passed away shortly after I bought in.

Long story short I got involved in the BC and it was an arduous (and expensive) process to get maintenance back on track. This is unfortunately the reality in a sectional title scheme - if you want to be sure that things are done properly, you pretty much need to get involved.
Click to expand...

For starters. Join AGM’s. Owners have the power
 
I.am.Sam said:
they do, but what schit happens when few owners are so behind on levies

the flat i owned has people owing couple 100k

goes back and forth to court for years

people arrange to pay .stop paying after few months back to square one
Click to expand...

You are lucky, we are sitting with 1 guy owing more than R1 000 000 in arrears
 
I.am.Sam said:
they do, but what schit happens when few owners are so behind on levies

the flat i owned has people owing couple 100k

goes back and forth to court for years

people arrange to pay .stop paying after few months back to square one
Click to expand...
Yes, and the magistrate is very reluctant to grant a S66, especially if it is a primary residence. All part of The New South Africa, where there aren't any consequences anymore.
Meanwhile there are many families eating slap pap between two pieces of stywe pap for breakfast, but paying their levies, which cover the non-paying fsckrs' water, security services, sewerage, waste removal, management fees and maintenance of the common property. Some people simply have no shame.
 
So does 20 vs 30 year loan really make such a big difference if you make use of flexi and pay in extra (or plan to at least) every month. So when things do get tight you have the cheaper monthly payments compared to 20 year loan.
How big is the payment difference towards interest on paying for example towards a 1.5m loan / 11,25%

20 year loan: R15 739
30 year loan: R15 739 (so an additional R1170 on your monthly instalment of R14569)

/peanutbrain

Edit: Never mind. It is actually quite a big difference. Depends. Risk is a bit lower. Thank you Internet.

R 3 777 322 vs R 4,370,743
 
Last edited:
RedViking said:
So does 20 vs 30 year loan really make such a big difference if you make use of flexi and pay in extra (or plan to at least) every month. So when things do get tight you have the cheaper monthly payments compared to 20 year loan.
How big is the payment difference towards interest on paying for example towards a 1.5m loan / 11,25%

20 year loan: R15 739
30 year loan: R15 739 (so an additional R1170 on your monthly instalment of R14569)

/peanutbrain

Edit: Never mind. It is actually quite a big difference.
Click to expand...
No it makes no difference. You get charged interest daily on the days highest outstanding balance. If you're self-employed, it can make sense to opt for 30 years just as a slight hedge there's a downturn in business.

I've done it with quite a few loans in the past. Just make sure you're dilligent and pay the extra. If you don't, 30 years is much more expensive. I like it because it gives me the choice and I know I'm diligent.

On vehicles I've even got lower interest rates on a 72 month loan vs a 60 month loan. Just ask for two quotes and compare rates as well. The above only applies if the rates are the same.
 
Harmonic said:
No it makes no difference. You get charged interest daily on the days highest outstanding balance. If you're self-employed, it can make sense to opt for 30 years just as a slight hedge there's a downturn in business.

I've done it with quite a few loans in the past. Just make sure you're dilligent and pay the extra. If you don't, 30 years is much more expensive. I like it because it gives me the choice and I know I'm diligent.

On vehicles I've even got lower interest rates on a 72 month loan vs a 60 month loan. Just ask for two quotes and compare rates as well. The above only applies if the rates are the same.
Click to expand...
Yeah business has been almost dead since December. NZ having a massive housing crisis. So during the quiet months lower fees will help but also don't want to shoot myself in the foot in the long run. But everyone seems to be against 30 year loans.
 
RedViking said:
Yeah business has been almost dead since December. NZ having a massive housing crisis. So during the quiet months lower fees will help but also don't want to shoot myself in the foot in the long run. But everyone seems to be against 30 year loans.
Click to expand...
It's really only a question of personal diligence assuming the rates are the same. If they are, no reason not to go for 30 years assuming you can trust yourself to pay extra when things are good
 
Harmonic said:
It's really only a question of personal diligence assuming the rates are the same. If they are, no reason not to go for 30 years assuming you can trust yourself to pay extra when things are good
Click to expand...
Yeah I am pretty good with money if my family can take are of their own issues. Just coffee that is a weak spot.
 
RedViking said:
So does 20 vs 30 year loan really make such a big difference if you make use of flexi and pay in extra (or plan to at least) every month. So when things do get tight you have the cheaper monthly payments compared to 20 year loan.
How big is the payment difference towards interest on paying for example towards a 1.5m loan / 11,25%

20 year loan: R15 739
30 year loan: R15 739 (so an additional R1170 on your monthly instalment of R14569)

/peanutbrain

Edit: Never mind. It is actually quite a big difference.Thank you Internet.

R 3 777 322 vs R 4,370,743
Click to expand...

You can take 30 years. Or 20 years! The power is in your hands ultimately. You can take a bond out for 30 years to get affordability. Thats a very important sentence. And after 2 years, call the bank and ask them how much do you need to pay, to pay it off in 18 years!

I think I said it a few times over and over: the power of a flexi is revolutionary! It boils down to commitment.
 
I was only approved for 30y when I bought my current home. Even thou I am quite far ahead with payments. So it depends on what you can get.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X