One Million rand loan / bond

[Chuck39]

Hi All

Need some advice or guidance

I'm in the process of building a house and have spent much of my money on the foundation (unplanned for challenges)
I now need approximately 700 thousand to complete the build and these are a few ideas that I've had, since the bank doesn't finance 100% bond on plots

- Borrow 1 million from an investor, use 300k to consolidate and the R700k to build
- Sell the plot to my wife for 1 Million and do as in option 1, then re-bond the house when completed
- Borrow a million by other means?

Would appreciate any advice / guidance

 

[ToxicBunny]

Talk to your bank in terms of a building loan with plans and valuations on what the completed structure will be worth..

Since you've managed to get things out of the ground, you should have some existing equity in the project itself.

 

[Chuck39]

The problem with that is, the bank finances certain stages of the build and then bonds the completed house
I however want to use some of the cash to consolidate my current debt and then use the rest to build - So will need a lump some of money to do so

 

[Messugga]

Talk to your bank in terms of a building loan with plans and valuations on what the completed structure will be worth..

Since you've managed to get things out of the ground, you should have some existing equity in the project itself.

Banks aren't keen on building bonds at the moment. You're looking at 70% max, as a rule of thumb.

 

[Chuck39]

Are there other options available besides the banks though - well that you know of?

 

[Messugga]

Are there other options available besides the banks though - well that you know of?

Loan sharks? You're going to struggle to get someone to risk that sort of money on you.

 

[Messugga]

Also, you can't sell the plot to your wife for a million rand. She'll have to apply for a bond which will get turned down on valuation. Unless she has a million rand lying around, which would invalidate this thread.

 

[F1 Fan]

Tell us more about your project? Im keen to know and it may help to get input

 

[Chuck39]

@F1 - I bought the plot for around 400k in 2015 and the plan is to build a holiday house - I gave 200k from my pocket and bonded the rest for the purchase.
Decided to start building about 6 months ago and already spend around 180k on the foundation from bank loans and my own money - Now Im hoping to get a million to consolidate the loan and bond, then use the rest to build - Where are the loan sharks in cpt that will borrow 1 bar?