Second Bond ? - pls help

[coolio24]

Hi guys - I could really use some advice on this

I am currently living in a two bedroomed townhouse in the East of Pretoria - but as my family is getting bigger ( wife is preggies ) I need to move to a bigger place urgently.

I tried to sell the place, but have had no luck

I have now found a tenant - and the rental almost covers my loan repayment on the house

Will a bank finance a new house - if I am still paying off loan on the first place

Only thing I can find on the net is about re-advances and further loans

PS - thinking of moving to Thatchfield - seems nice - anyone know about the crime rate there

 

[willirob]

Bank will give you a loan for the new place IF YOU CAN AFFORD IT !

 

[gifs]

At the end of the day it comes down to affordability. The bank wants to see if you have enough money left at the end of the month to cover the repayment.

 

[Waaib]

Do the banks count the rental as income and offset against total affordability these days?

 

[remybfg10k]

Yes it is an income thats why Rental income is also monitored by SARS

 

[coolio24]

Thanks guys, the affordability calculator says I can afford up to 1.4m i want to buy for about 1.2m

Yes it is an income thats why Rental income is also monitored by SARS

do i have to declare the income with SARS - is there tax implications

 

[Deenem]

Thanks guys, the affordability calculator says I can afford up to 1.4m i want to buy for about 1.2m

You need to subtract the bond on your current place from the 1.4m. But include your income, rental income & wife's income when calculating.

do i have to declare the income with SARS - is there tax implications

You have to pay tax on the rental income, but you can deduct the levy, water & lights & bond interest (not capital) payment and calcualte tax on the remainer. If you play your cards right you won't pay any tax.