Offer to purchase question

I am purchasing a unit for R900000, Another agent that I only learnt about yesterday told me that he sold last 2 unit same complex for R850 000 after commission. I was told the unit had an offer. I just realize was a sell tactic, but the unit is in great shape compared to the R825000 and R850000 unit. Market Est is max R910k.

There a lease in unit(Expires end Feb), In the OTP I put clause that I will take occupation 1 March and rental R8k. So that should ensure the old tenants are not my responsibility?

Now just waiting for bank approval, I was pre-approved for R1.5m.
 
Sinbad said:
I find there's a significant difference between what the NCR considers affordable and what is actually affordable :laugh:
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Indeed. We were approved for a much higher amount according to their affordability formula.

And although we might have been able to afford the monthly installment it would have meant half of our other living expenses would have to be cut in half to survive.
 
APoc184 said:
Indeed. We were approved for a much higher amount according to their affordability formula.

And although we might have been able to afford the monthly installment it would have meant half of our other living expenses would have to be cut in half to survive.
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I wish I put in OTP the maximum rate of 8% as a condition for peace of mind.
 
Dark Agent said:
I wish I put in OTP the maximum rate of 8% as a condition for peace of mind.
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We didn't put that in our OTP at all. And I do believe many many other also don't.

Which is why it is so important to get preapproval to see what estimated rate and installment the banks will grant you. Not just use a calculator. Get actual approval and estimates from the banks.

Luckily we covered that part and knew we were going to get close to prime rate so the OTP clause wasn't necessary.
 
APoc184 said:
We didn't put that in our OTP at all. And I do believe many many other also don't.

Which is why it is so important to get preapproval to see what estimated rate and installment the banks will grant you. Not just use a calculator. Get actual approval and estimates from the banks.

Luckily we covered that part and knew we were going to get close to prime rate so the OTP clause wasn't necessary.
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This was my approach as well. I used ABSA and their online pre-approval thing. Won't necessarily go with them in the end but it's fast and simple. I know I won't get a worse rate than that.
Thor said:
I did not know one could do that
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One can do pretty much anything that's legal i.t.o. contract law. The seller can accept or reject, but the two parties can amend the contract as much as they like until they reach agreement. Or if they can't, in theory they just walk away from the transaction.
 
Dark Agent said:
I am purchasing a unit for R900000, Another agent that I only learnt about yesterday told me that he sold last 2 unit same complex for R850 000 after commission.
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I'm not sure what you're getting at? Out of your 900k, will come your agent's commission and the rest will go to the seller?
 
I see Capitec is kinda of offering home loans. Anyone know how’s the interest rate.
 
beefymoocow said:
I see Capitec is kinda of offering home loans. Anyone know how’s the interest rate.
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Capitec just forwards you to SA Home Loans basically.

The interest rate will depend on your profile.

My OTP was accepted last night so today I'll be applying to a few places, they'll be one. I'll post the results here.
 
newby_investor said:
Capitec just forwards you to SA Home Loans basically.

The interest rate will depend on your profile.

My OTP was accepted last night so today I'll be applying to a few places, they'll be one. I'll post the results here.
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Any reason you've decided to do the applications yourself rather than use an originator?
 
newby_investor said:
Capitec just forwards you to SA Home Loans basically.

The interest rate will depend on your profile.

My OTP was accepted last night so today I'll be applying to a few places, they'll be one. I'll post the results here.
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Seems from this morning's need this is a new product, still via SA home loans though.
 
OK so back to my issue for a sec (sorry, I only have a few mins now). I got preapproval for R1,139,000. That's using my salary only, over 20 years, at Prime. The offer we put in place is for a total of R1,100,000. The pre-approval accompanied the OTP to the sellers. So if the interest rate exceeds that which is printed on the pre-approval, chances are I won't have pre-approval and then it'll be pretty easy to get out from the deal (as pre-approval is a requirement on this one from the seller's side.

Regarding the interest rate, according to various credit institutions (I checked) I fall somewhere between the top bracket and the one just below it. So my credit score is not bad, which hopefully means I'll get a decent interest rate. Yes, I'm hoping for Prime -1%, obviously. We all are. But I'll be happy with Prime-0.5%, and I'd settle for Prime.
 
Speedster said:
Seems from this morning's need this is a new product, still via SA home loans though.
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SA HL's is 2 years now with Capitec, so it aint new news at all (and still jibar rate lol). Think its a bad move to team up with a homeloan firm not huge in the market for decades. But would love to apply and see how their 4 step product works to get a bond. You aint buying a car here.
 
Speedster said:
Any reason you've decided to do the applications yourself rather than use an originator?
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I have heard various opinions regarding originators. I have the ability to do the leg-work myself so I don't really feel the need to support yet another middle-man in an already overly-complicated industry.
 
newby_investor said:
I have heard various opinions regarding originators. I have the ability to do the leg-work myself so I don't really feel the need to support yet another middle-man in an already overly-complicated industry.
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All banks pay a MO an acceptance fee. If you go direct, you get that perk towards yourself. I know for a fact nedbank and fnb offers that going direct

And you might up ending with a lower rate going direct
 
I also believe you can miss out on the other perks the bank give you - like half of your first payment back in eBucks and half off your transfer fee or something like that, if you go through an originator. I'll try my own bank first, and if that goes wonky, I'll try an originator, when I have to.
 
Toxxyc said:
I also believe you can miss out on the other perks the bank give you - like half of your first payment back in eBucks and half off your transfer fee or something like that, if you go through an originator. I'll try my own bank first, and if that goes wonky, I'll try an originator, when I have to.
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FNB capped the eB perk to R6000 now (just FYI, the first 50% of your DO back in eb)
 
Yep. That's fine with me. I don't hit that number in the amount I'm buying.
 
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