Offer to purchase question

rietrot said:
Most valuations are done electronically through lightstone or whatever it's called. They will only send someone in exceptional circumstances and with building loans.
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I disagree. In my recent experience, the bank sent a person to do a valuation before final grant - and I'm bank staff. I think it's part of their process now, as they never did this before.
 
Speedster said:
We just did an inventory of everything that needs to be moved, and I'm surprised by how much stuff it is. Anyway, I'm probably going to have to get a moving company for at least the furniture. Any tips for this?
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We used Eezi move 3 weeks ago, really great service and pricing and the team were very professional . Arrived early and made a plan to ensure even the hardest of items got moved with no issues. 100% recommend
 
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Napalm2880 said:
I disagree. In my recent experience, the bank sent a person to do a valuation before final grant - and I'm bank staff. I think it's part of their process now, as they never did this before.
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Yes banks make a big deal out of the loan to value, but it doesn't really matter that much anymore.
 
rietrot said:
The valuation price means nothing really. If you don't pay they will never get that on auction a few R100k out doesn't make a difference.
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FNB really dont play. If they want to give a bond out, the risk is on them. If you buy a house and its a shack, then the buyer and the bank is wrong. As the buyer can take the bank to the NCR / Ombudsman.

Anyway, one can write a book on this topic about how loans are granted.
 
Toxxyc said:
Absa wants to insure my R2.1mil for a total of R138585 over 360 months, for a monthly payment of around R385. I feel it's a bit high. I'm getting additional quotes.
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Seems about right to me. But yes, it is your prerogative to get more quotes, you don't have to accept the bank's insurance.

I just went with Std Bank (slightly lower premium but similar) - you can change insurers later though. I'll shop around more when I've got less on my plate.
 
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How does one determine the insurance amount?
My insurance is R931 for R3.4m cover.
We bought the house for R1.7m

All the quotes I got, needed me to provide the coverage amount.
 
McGuywer said:
How does one determine the insurance amount?
My insurance is R931 for R3.4m cover.
We bought the house for R1.7m

All the quotes I got, needed me to provide the coverage amount.
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The insured amount is what you'd have to spend to rebuild the place if it were destroyed e.g. in a fire. It's almost not connected to the sale price at all.

You do get building insurance valuators who can tell you what the replacement amount is. I've dealt with one in my apartment block, PM me if you need the details (in Cape Town region that is). Then an insurer will give you a premium for that amount.
 
Any recommendations for reputable building insurance, besides Outsurance and Momentum?
 
McGuywer said:
How does one determine the insurance amount?
My insurance is R931 for R3.4m cover.
We bought the house for R1.7m

All the quotes I got, needed me to provide the coverage amount.
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The big amount is replacement value. Someone initially geuss what it would cost to rebuild your house should it burn down and give a very rough estimate.

The premium is based on the risk if they think they would ever have to pay that amount.
 
OK I got my building insurance quote back. Absa's premium was R384-and-change per month for the building insurance. I got a quote through my broker for the same replacement value, but with a ton of extras like pet insurance (like WTF), visitor's claims insurance (yes, really) and more, and the quote came back as R303-and-change. My home contents insurance is already with them, so the total premium would be R567.20. That covers the building for R2.1mil and home contents of R350k. Home contents amount needs to be updated, it's probably closer to R400k by now.
 
Alrighty, so another call came in. Apparently now I need life insurance on the home loan amount as well. Like, how many covers does one need?
 
Toxxyc said:
Alrighty, so another call came in. Apparently now I need life insurance on the home loan amount as well. Like, how many covers does one need?
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building insurance and life insurance generally, some people have apparently found they didnt in fact need life insurance but in my experience you do.
 
Yeah I'm fully aware I need life insurance, but wouldn't the loan have built-in credit protection like other credit facilities (like credit card and overdraft)? Just a stupid Q. I don't know, hence me asking.

EDIT: Well, I don't need life insurance, but I'll be damned if I'm gonna be the bastard who makes more than a million bucks' debt, die and leave my wife and kids with the ****.
 
Also got a call today, sellers got their visas. The suspensive conditions have been lifted. The place is finally mine! :D
Now its over to attorneys, payment has been made. I know the electricity certificate and electric fence cert is ready. So hopefully its a quick process for the law peeps.
 
Toxxyc said:
Yeah I'm fully aware I need life insurance, but wouldn't the loan have built-in credit protection like other credit facilities (like credit card and overdraft)? Just a stupid Q. I don't know, hence me asking.

EDIT: Well, I don't need life insurance, but I'll be damned if I'm gonna be the bastard who makes more than a million bucks' debt, die and leave my wife and kids with the ****.
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Can definitely recommend PPS for death and disability cover
 
I wasn't informed of any requirement of life insurance, either for my current bond or my previous one.

But I have group cover through my employer for a bit more than what the bond amount is, so if the proverbial **** should hit the fan, then at least my wife is covered.
 
newby_investor said:
I wasn't informed of any requirement of life insurance, either for my current bond or my previous one.

But I have group cover through my employer for a bit more than what the bond amount is, so if the proverbial **** should hit the fan, then at least my wife is covered.
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I am in the same situation, my fiancé has life cover through Discovery and I have group life cover through my employer.
 
I asked my employer. Also have group life cover, so I should be sorted. They call it the "cover you never want to pay out".
 
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