Offer to purchase question

It is. All I mean is I don't care for the limit, as half my first payment won't be near the limit.
 
Thanks to all for the direct and indirect advice. My third property purchase and I still learnt so much, some of which will need to apply to the next one.
Contender for thread of the year for me!
Also agree that updating the first post with a summary would be awesome, but it is a lot of leg work. Great idea @APoc184!

Update on my purchase, lodged last 27/10/2020 and I received a mail that it was registered this morning.

The longest part of this process and maybe some advice to others. The seller/agent gave me 30 days to get a bond and I maxed it out.
I managed to use this process to drop the rates on my other two properties by 0.5% each. Through negotiating I also got a 0.5% better than what I was hoping for.
So Primary residence moved from -0.75% to -1.25%
Investment property 1 moved from -0.5% to -1%

This is investment property 2, I expected at most -0.5% and this was my initial offer from current bank.
FNB initially offered around prime.
Using my other two properties as leverage, saying I'll switch if they come to the party on all rates, I managed to get it down to -1% which is significant because it is my largest purchase.
Add to that, FNB pay for all fees except the initiation fee (but do give eBucks that could cover this).
The negotiations were a bit stressful, Sellers were getting worried but I assured them I have approval in place and was just trying to get the best rate possible.

At the end of the day, I could have had this property much sooner but taking the time I did was well worth the effort, it is a 20 year commitment after all. Hope this info helps someone else too!
 
Socially distant bubbly sounds like flat wine. :P
 
droidx said:
Thanks to all for the direct and indirect advice. My third property purchase and I still learnt so much, some of which will need to apply to the next one.
Contender for thread of the year for me!
Also agree that updating the first post with a summary would be awesome, but it is a lot of leg work. Great idea @APoc184!

Update on my purchase, lodged last 27/10/2020 and I received a mail that it was registered this morning.

The longest part of this process and maybe some advice to others. The seller/agent gave me 30 days to get a bond and I maxed it out.
I managed to use this process to drop the rates on my other two properties by 0.5% each. Through negotiating I also got a 0.5% better than what I was hoping for.
So Primary residence moved from -0.75% to -1.25%
Investment property 1 moved from -0.5% to -1%

This is investment property 2, I expected at most -0.5% and this was my initial offer from current bank.
FNB initially offered around prime.
Using my other two properties as leverage, saying I'll switch if they come to the party on all rates, I managed to get it down to -1% which is significant because it is my largest purchase.
Add to that, FNB pay for all fees except the initiation fee (but do give eBucks that could cover this).
The negotiations were a bit stressful, Sellers were getting worried but I assured them I have approval in place and was just trying to get the best rate possible.

At the end of the day, I could have had this property much sooner but taking the time I did was well worth the effort, it is a 20 year commitment after all. Hope this info helps someone else too!
Click to expand...

If you think this thread have tips (lol), well ... chat to me ! Just bought house nr 7 !
 
droidx said:
Update on my purchase, lodged last 27/10/2020 and I received a mail that it was registered this morning.
Click to expand...

Big congrats!!! Registrations are going to come in thick and fast now for properties that started the process same time as us.
 
By the way. Still not even lodged on our side.

*crickets chirping* at the attorneys about our written consent to remove deed condition and then proceed to lodge!
 
zerocool2009 said:
If you think this thread have tips (lol), well ... chat to me ! Just bought house nr 7 !
Click to expand...
Well done! I think this thread is a wonderful source of info for new and seasoned buyers alike regarding the purchasing process.

Share your wealth of knowledge so that all can benefit. Unless of course it would detract you. Start a new thread about accumulating property. Not many people are able to accumulate that many properties.
 
Alrighty. So we inspected the place we put the OTP on again today, because we want to start getting our heads around the whole thing. This is the best chance we've had to date to actually get a place. So we check out everything and as we leave the current tenant stop us, wants to have a chat. So, before I continue, let me explain the setup here.

The tenant is a "bed-ridden" woman, who can't move (apparently). I believe she rents from the owner, and then sub-lets to (as I have counted today) 7 other people also on the premises. This is the first time I'm actually seeing it this clearly. She lives in the main bedroom, and in the other two bedrooms are two other people. Outside is a caravan, two tents and two shacks (literal zinc plate shacks). All apparently occupied. The people inside the house share a bathroom, and the people outside share the outside toilet. There's no refuse for that many people, so they literally just dump their **** in the yard. It's as bad as it sounds.

The tenant sits in her bed all day, smoking and watching all the other sub-tenants on a big TV. That's what she does. Literally. All day.

So anyway, as we're walking out, she stops my wife and I. She wants to know if we're buying, and if we're buying, if we want to stay in the house. I said "yes". She says "OK, by when". I say "as soon as registration happens". Then the **** started forming.

She said that the new owner of the house (who is not the owner, the house is in a deceased estate and the executor is the "owner") never told her that she must move, so she didn't receive her notice yet. She also says she wants 2 calendar months notice before she must move, and she will demand it, so according to her she's only leaving the house at the end of January 2021.

So I tell her that I'm sorry, but as I have it her contract expired already, AND the executor gave her notice to move. I also told her my contract stipulated that I get occupation on registration. She then said "thank goodness, still gives me 3 months". So I said "no no, wait, it can go as quickly as 6 weeks because I already have pre-approval, my paperwork is in order and the OTP is already in". Then she started going on about not receiving notice and she has rights. I told her the day the registration goes through, that is the day I rip out all the carpets and floors in the entire house, I break down the walls and tear down both the kitchen and the bathroom. She just kept quiet. So I said she must take it up with the owner, and left.

So, who's bought a house with a stubborn, sub-letting tenant before? I don't mind fighting the seller, but I'm not fighting the tenant for ****. My OTP states that I get occupation on the date of registration, but it doesn't state what rent I'm due if I can't occupy. That was one of the sections that was left blank.
 
Toxxyc said:
Alrighty. So we inspected the place we put the OTP on again today, because we want to start getting our heads around the whole thing. This is the best chance we've had to date to actually get a place. So we check out everything and as we leave the current tenant stop us, wants to have a chat. So, before I continue, let me explain the setup here.

The tenant is a "bed-ridden" woman, who can't move (apparently). I believe she rents from the owner, and then sub-lets to (as I have counted today) 7 other people also on the premises. This is the first time I'm actually seeing it this clearly. She lives in the main bedroom, and in the other two bedrooms are two other people. Outside is a caravan, two tents and two shacks (literal zinc plate shacks). All apparently occupied. The people inside the house share a bathroom, and the people outside share the outside toilet. There's no refuse for that many people, so they literally just dump their **** in the yard. It's as bad as it sounds.

The tenant sits in her bed all day, smoking and watching all the other sub-tenants on a big TV. That's what she does. Literally. All day.

So anyway, as we're walking out, she stops my wife and I. She wants to know if we're buying, and if we're buying, if we want to stay in the house. I said "yes". She says "OK, by when". I say "as soon as registration happens". Then the **** started forming.

She said that the new owner of the house (who is not the owner, the house is in a deceased estate and the executor is the "owner") never told her that she must move, so she didn't receive her notice yet. She also says she wants 2 calendar months notice before she must move, and she will demand it, so according to her she's only leaving the house at the end of January 2021.

So I tell her that I'm sorry, but as I have it her contract expired already, AND the executor gave her notice to move. I also told her my contract stipulated that I get occupation on registration. She then said "thank goodness, still gives me 3 months". So I said "no no, wait, it can go as quickly as 6 weeks because I already have pre-approval, my paperwork is in order and the OTP is already in". Then she started going on about not receiving notice and she has rights. I told her the day the registration goes through, that is the day I rip out all the carpets and floors in the entire house, I break down the walls and tear down both the kitchen and the bathroom. She just kept quiet. So I said she must take it up with the owner, and left.

So, who's bought a house with a stubborn, sub-letting tenant before? I don't mind fighting the seller, but I'm not fighting the tenant for ****. My OTP states that I get occupation on the date of registration, but it doesn't state what rent I'm due if I can't occupy. That was one of the sections that was left blank.
Click to expand...

You literally make it the Executors problem pretty much... If your OTP is accepted, raise it with the Executor NOW that they must provide a vacant property by registration.
 
Toxxyc said:
Alrighty. So we inspected the place we put the OTP on again today, because we want to start getting our heads around the whole thing. This is the best chance we've had to date to actually get a place. So we check out everything and as we leave the current tenant stop us, wants to have a chat. So, before I continue, let me explain the setup here.

The tenant is a "bed-ridden" woman, who can't move (apparently). I believe she rents from the owner, and then sub-lets to (as I have counted today) 7 other people also on the premises. This is the first time I'm actually seeing it this clearly. She lives in the main bedroom, and in the other two bedrooms are two other people. Outside is a caravan, two tents and two shacks (literal zinc plate shacks). All apparently occupied. The people inside the house share a bathroom, and the people outside share the outside toilet. There's no refuse for that many people, so they literally just dump their **** in the yard. It's as bad as it sounds.

The tenant sits in her bed all day, smoking and watching all the other sub-tenants on a big TV. That's what she does. Literally. All day.

So anyway, as we're walking out, she stops my wife and I. She wants to know if we're buying, and if we're buying, if we want to stay in the house. I said "yes". She says "OK, by when". I say "as soon as registration happens". Then the **** started forming.

She said that the new owner of the house (who is not the owner, the house is in a deceased estate and the executor is the "owner") never told her that she must move, so she didn't receive her notice yet. She also says she wants 2 calendar months notice before she must move, and she will demand it, so according to her she's only leaving the house at the end of January 2021.

So I tell her that I'm sorry, but as I have it her contract expired already, AND the executor gave her notice to move. I also told her my contract stipulated that I get occupation on registration. She then said "thank goodness, still gives me 3 months". So I said "no no, wait, it can go as quickly as 6 weeks because I already have pre-approval, my paperwork is in order and the OTP is already in". Then she started going on about not receiving notice and she has rights. I told her the day the registration goes through, that is the day I rip out all the carpets and floors in the entire house, I break down the walls and tear down both the kitchen and the bathroom. She just kept quiet. So I said she must take it up with the owner, and left.

So, who's bought a house with a stubborn, sub-letting tenant before? I don't mind fighting the seller, but I'm not fighting the tenant for ****. My OTP states that I get occupation on the date of registration, but it doesn't state what rent I'm due if I can't occupy. That was one of the sections that was left blank.
Click to expand...

Going to be interesting one to follow this... Good luck.

Don't take this the wrong way. I think 6 weeks is wishful thinking.

Chances are good that it will still take at least 12 weeks to get registered if all goes well. The pre-approval and signed OTP doesn't mean much. It is but a drop in the ocean of things that must happen.

Think because it is in a deceased estate it is going to take even longer to get the rates and taxes clearance certificates, electricity COC, etc. Think there are many other problems to still arise from this one when the conveyancers start requesting and drafting stuff.

Maybe the reason the agent is also saying "No way out". She has your offer that will probably be accepted. Not sure their were other offers on the table as she said.
 
I don't care. I want the place. I raised the problem with her, and I just want the people out by registration.

Also, by the state of the place. COC is going to take forever. There are extension cords running out of the house powering the caravan and shacks, there are wires dangling from EVERYWHERE, etc. I don't care if it takes 6 months - but I'll be damned if the registration takes place and that house isn't empty.

EDIT: Oh yes, and I sent the agent messages stating that she must take it up with the executor NOW and she agreed. So let's see. Even if I don't get the place, that sounds like a BIG problem for whoever buys it.
 
Toxxyc said:
I don't care. I want the place. I raised the problem with her, and I just want the people out by registration.

Also, by the state of the place. COC is going to take forever. There are extension cords running out of the house powering the caravan and shacks, there are wires dangling from EVERYWHERE, etc. I don't care if it takes 6 months - but I'll be damned if the registration takes place and that house isn't empty.

EDIT: Oh yes, and I sent the agent messages stating that she must take it up with the executor NOW and she agreed. So let's see. Even if I don't get the place, that sounds like a BIG problem for whoever buys it.
Click to expand...

100%, it sounds like a HUGE nightmare for whoever gets the place, I hope you factored that sort of thing into the price you put in your OTP?
 
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