Offer to purchase question

Most places are listed keeping in mind most places sell between 12% and 13% below the listing price anyway.

On a related note - are credit scores all universal in number? Like, if I get a score of say, 800, does that mean it's excellent like it says on the charts and stuff I see floating on the net? Last time I checked my score was when I just started working, and then I scored something silly like 635 or something like that. I remember being a bit peeved because I got a car loan, but the interest rate was something like prime plus 11%. Yes, young, inexperienced and it was a car I really wanted (thing went like stink).

Also, what's the sort of interest rate negotiations one can look at these days? Prime is as 7% now, it seems, so is Prime minus 1% a possibility?
 
Toxxyc said:
Most places are listed keeping in mind most places sell between 12% and 13% below the listing price anyway.

On a related note - are credit scores all universal in number? Like, if I get a score of say, 800, does that mean it's excellent like it says on the charts and stuff I see floating on the net? Last time I checked my score was when I just started working, and then I scored something silly like 635 or something like that. I remember being a bit peeved because I got a car loan, but the interest rate was something like prime plus 11%. Yes, young, inexperienced and it was a car I really wanted (thing went like stink).

Also, what's the sort of interest rate negotiations one can look at these days? Prime is as 7% now, it seems, so is Prime minus 1% a possibility?
Click to expand...
Each credit bureau has a different scoring system. It is worthwhile accessing your free credit report - experian and compuscan you can check continuously while XDS and transunion only allow one free report per year.
 
Yeah I queried the score with place. They say my score is good and I qualified for a tiny bit more than I hoped for. So it's all good.

Now to go view that property I want.

On a side note - say I want to buy a property. It's falling apart (literally). Stands on turf (that cracking clay soil stuff), was never maintained, etc. etc. Needs a few hundred grand to get "livable". How would one go about making an offer on such a property, but then apply to the bank for a higher loan to cover all the expenses? I'm thinking of offering R750k for the place, but it needs around R300k to fix up. I must note that at R300k it will then be exactly how we want it - in other words, top-notch condition, with the foundation fixed, completely refinished inside and out and with all the bells and whistles I want on a place right now.

My question is - how do I apply for such a loan that's higher than the purchase price?
 
Speedster said:
experian and compuscan you can check continuously while XDS and transunion only allow one free report per year.
Click to expand...
I checked on Experian and it directed me to MyCreditCheck. I scored 689. It says "Great" and it's the highest bracket on their scale thingy. So yay, I guess.
 
Toxxyc said:
I checked on Experian and it directed me to MyCreditCheck. I scored 689. It says "Great" and it's the highest bracket on their scale thingy. So yay, I guess.
Click to expand...
Credit score is as important as affordability and loan to value ratio
 
I'm totally new to this, so that's why I seem a bit "uneducated". I've put in a few OTPs now to date (but there's always someone with more money than me), so I'm just fishing for more info while I can. I've played with calculators and stuff a lot now and think if I can get a half-decent purchase price with a low interest rate, I'll be sorted. I want prime at the absolute max. Preferably prime minus something something. At least with the pre-approval thingy they sent me it seems like I can borrow more than the maximum I budgeted for, so it puts my mind at ease quite nicely.
 
Toxxyc said:
Yeah I queried the score with place. They say my score is good and I qualified for a tiny bit more than I hoped for. So it's all good.

Now to go view that property I want.

On a side note - say I want to buy a property. It's falling apart (literally). Stands on turf (that cracking clay soil stuff), was never maintained, etc. etc. Needs a few hundred grand to get "livable". How would one go about making an offer on such a property, but then apply to the bank for a higher loan to cover all the expenses? I'm thinking of offering R750k for the place, but it needs around R300k to fix up. I must note that at R300k it will then be exactly how we want it - in other words, top-notch condition, with the foundation fixed, completely refinished inside and out and with all the bells and whistles I want on a place right now.

My question is - how do I apply for such a loan that's higher than the purchase price?
Click to expand...
I think you might be optimistic with that R300k cost?
 
Toxxyc said:
Most places are listed keeping in mind most places sell between 12% and 13% below the listing price anyway.

On a related note - are credit scores all universal in number? Like, if I get a score of say, 800, does that mean it's excellent like it says on the charts and stuff I see floating on the net? Last time I checked my score was when I just started working, and then I scored something silly like 635 or something like that. I remember being a bit peeved because I got a car loan, but the interest rate was something like prime plus 11%. Yes, young, inexperienced and it was a car I really wanted (thing went like stink).

Also, what's the sort of interest rate negotiations one can look at these days? Prime is as 7% now, it seems, so is Prime minus 1% a possibility?
Click to expand...

Credit firms has little say about your rate. Its more how your bank (internal credit system/scoring reflects). And thats just visible if you have contacts in the bank (not for clients eyes).
 
Sinbad said:
I think you might be optimistic with that R300k cost?
Click to expand...
I've got an "in" on the cost :P

zerocool2009 said:
Credit firms has little say about your rate. Its more how your bank (internal credit system/scoring reflects). And thats just visible if you have contacts in the bank (not for clients eyes).
Click to expand...

Yeah I figured as much. I have spoken to FNB directly as well, and done the pre-appoval thing with them. While that wasn't successful (they don't want to give pre-approval on paper for obvious reasons) I got a phone call from their home loans division and spoke to a person there for a while, who said after asking me a ton of questions that there's a "99% chance you'll get a full loan at the amount you requested" so I'm positive. Positive-ish.
 
Toxxyc said:
I've got an "in" on the cost :P



Yeah I figured as much. I have spoken to FNB directly as well, and done the pre-appoval thing with them. While that wasn't successful (they don't want to give pre-approval on paper for obvious reasons) I got a phone call from their home loans division and spoke to a person there for a while, who said after asking me a ton of questions that there's a "99% chance you'll get a full loan at the amount you requested" so I'm positive. Positive-ish.
Click to expand...

Let me pm you !
 
Update from our end - Bank did valuation yesterday and sent through the Advice of Grant and Facility letter... YAY.

Sent through to seller for their lawyers to give a once over then we will sign bank docs today. Looking to take occupational rental mid Nov to do some security upgrades and get a pool cover installed (toddler)
 
I sent in another OTP last night. No longer scared of filling in the forms. Just have to word the special clauses carefully and you're good to go. Hoping to score a bit on the place I placed the offer on now. The place is an ABSOLUTE DUMP. We did a visit and while there are some cracks, it's not bad and the walls don't need piling or invasive fixes for the foundation. I got a quote of between R300k and R350k to get the house "up to scratch", depending on the finished we choose, so I'm hoping to finance that similar to a building loan. The bond guys said it can be done. So now we wait.

House is in a deceased estate. It was apparently owned by someone who stayed in CPT, and they rented out the place for I don't know what. However, inside... My dudes, inside. I still get nightmares. There's this one woman who's so huge she can't get up (stuck to bed) who set up cameras in the entire house, so she keeps an eye on everyone else in the house. Then there's another old lady who looked like she's dead in the one bedroom (just lying there, didn't look like she was breathing) and in the back there's a dude subletting who's walking around his shack (literally) in his undies, his pitbulls running around like mad.

So the house is cracked. Entire house's floors have to be redone. There's carpet, but the carpet is barely carpet in most places (totally worn). Kitchen has no stove or oven, but there are like 6 broken fridges all over the house. And bicycles. Lots and lots of bicycles.

And clothes. Dirty clothes litter the entire house, and is piled up mostly in one bedroom, so that you can't walk without walking on clothes.

There's virtually no kitchen. Well, there is, but there are no cupboard doors or handles. All broken off. Drawers probably broke so they're strewn across the place so people can access the stuff in them,

The back yard has the shack, and also a rubbish heap. Not neatly tucked in a corner - slap bang in the middle of the lawn is a huge pile of soft drink and beer bottles. Like huge. 5m in diameter, easy. Lapa is falling over as well (poor pole planting).

The entire place also smells like smoke. Even outside. It's horrible. And yes, there are people living there. It's not even a "poor" area. I honestly wasn't expecting to find people living like that in the Moot's more popular areas. *shivers*
 
What's the area like, Toxxyc? As the saying goes, find the worst house in the best area, and it sounds like you managed to find the 'right' house for that saying. Does your offer include something about vacant occupation, or how do you plan to achieve that?
 
I believe the house has almost R200k in electricity debt on it, and the people living there have to move out when the place is sold. Apparently they're aware of that. Anyway, if the place is sold and I get my loan, I'm going to break down half of it, then those people won't have anywhere to stay anyway. I plan on removing the living room and dining room wall as well as the entire hallway wall (those old style homes had these useless halls that just broke everything apart) so that we'll have a massive kitchen-living-dining area to use, literally about half the house's overall size. First thing is a wall though, because there's no wall or fence at the front of the property. They can't stay there when that happens.

I frigging hope.

EDIT: Oh, the area. It is a cheaper area in the Moot, but it's not like Mountain View or Daspoort. It's a little bit nicer than that, more to the East. It's no Waverley and definitely no Waterkloof, but it's fine. It's less than 300m from the house where I grew up actually (where my parents still live). So I know the area very, very well. It's also right across the street from a daycare centre/creche. So here's to hoping.
 
You are certainly much braver than most of us for tackling such a problematic property.

From structural issues, to repairs, to hoarder tenants to rates & taxes issues.

Sounds like endless problems and fights.

Good luck and keep us posted.
 
By the way.

We are still waiting to get lodged. Still no Written Consent from City of Tshwane to drop silly ancient Title Deed Condition.

But everything is set for our move on Sunday at least. Occupational rent here we come!
 
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