Tips for buying a house first time?

xrapidx said:
Bond approved by ABSA Private for the Private One Account :)

That has got to be the fastest turnaround time for a house - I only submitted the documentation yesterday this time.
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Approved in principle or final grant?
Between the approval in principle and the final grant they have to send our an assessor to assess the value of the property. Only then will they give you the final grant.
 
Paul_S said:
Approved in principle or final grant?
Between the approval in principle and the final grant they have to send our an assessor to assess the value of the property. Only then will they give you the final grant.
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Approved final - they did a computer assisted valuation, and it came in at R2m - the banker said if they sent someone out to the property it would probably be valued at between R2.1m and R2.2m - so they don't see the need.

Paper work is on the way to the attorneys as we speak.
 
Just over a week to buy a house ... nice ;)
 
Dolby said:
Just over a week to buy a house ... nice ;)
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Been looking for awhile though :p

Interest rates arn't that bad either -1.5% on the first 60%, and then -0.5% on the last 40%...

And once you paid off the first 40%, it stays on -1.5%.
 
Damn Xrapid, u must be earning a decent salary! Man, some people! I can only afford a flat for around R7k max all inclusive!


However, I can't get finance since I'm a contract worker (Bank policy I'm told). I seriosly need a permanent job! Anyone, any hiring cos?
 
Maelly said:
However, I can't get finance since I'm a contract worker (Bank policy I'm told). I seriosly need a permanent job! Anyone, any hiring cos?
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I'm a contractor?

When I wanted to buy three years ago, I couldn't afford a flat of R300,000. :o
 
Maelly said:
However, I can't get finance since I'm a contract worker (Bank policy I'm told). I seriosly need a permanent job! Anyone, any hiring cos?
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I bought a place when I was doing contract work. They only asked for proof of income and checked out my bank account going back a few years I think. Maybe the new NCA has changed that but work is work.
 
Frankie said:
Aren't most employed skilled white folks "contractors" these days?
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Probably - I've been a contractor since I started working though (2001) - not too sure about skilled though :p On all the forms these days they seem to ask your highest qualification, which in my case is Std. 8 :(

I have a couple of third party qualifications like MCSE, MCSD, etc, but I don't think they count.
 
Waaib said:
I bought a place when I was doing contract work. They only asked for proof of income and checked out my bank account going back a few years I think. Maybe the new NCA has changed that but work is work.
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I had to provide six months proof of income, and three months bank statements.
 
Can someone explain how the registering a bond for a certain amount works, and how it works that you have to register a new bond if you want a different amount?

I contacted my banker, cause I wanted to increase the bond amount for an extra R100,000 so I can collapse my car loan into the bond, he said I'd need to register for a new bond - but can only register for 85% of the property value something - and then said something about registering for R2,000,000 instead of R1,700,000 I asked for - but would I then require a 15% deposit on R2,000,000?
 
xrapidx said:
Can someone explain how the registering a bond for a certain amount works, and how it works that you have to register a new bond if you want a different amount?

I contacted my banker, cause I wanted to increase the bond amount for an extra R100,000 so I can collapse my car loan into the bond, he said I'd need to register for a new bond - but can only register for 85% of the property value something - and then said something about registering for R2,000,000 instead of R1,700,000 I asked for - but would I then require a 15% deposit on R2,000,000?
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Yowsers. Get a new banker maybe? I'm totally lost on this one. Sounds like he is saying you need to apply for an entire new bond to increase your current.

Increasing a bond is like saying to the bank that the house you bought for R1million a year ago is now worth R1.2mill so you want access to the extra R200k.
They would need to asses their risk which is understandable. There is usually some legal/bond fee involved to increase the loan amount. I seem to remember 6% as the number - probably wrong on that one though.
Maybe what he is saying is that you need to pay deposit on the extra amount to be bonded. So for an extra R100k 10% would be R10000?
 
I'm sure it's something you've considered, but paying your car off over 20 years is never a good idea...
 
Theres no plan to pay the car off over 20 years - I'll pay the same amount off each month, thereby paying off the car and home loan off much faster
 
I've just bought a house. Trust me, now is a VERY good time to buy! I got a 3 bedroom, 2 bathroom, 2 carport and garden home for R510k. I'm currently renting it out for more than what my bond repayments are.

Buy now! It's a good market!!
 
xrapidx said:
Can someone explain how the registering a bond for a certain amount works, and how it works that you have to register a new bond if you want a different amount?
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That's correct and it works like that at all the financial institutions as far as I know.
A new bond has to be granted and the old one cancelled or a second bond has to be granted that is separate from the original bond if the total amount of credit you want is going to be more than the original bond amount.

However if it's an access bond and you've paid off R100K of the bond you can just draw the money and pay the car loan off.
i.e. If you have a bond of R1.7 million and you owe R1.6 million and it's an access bond you can access the R100K difference.
 
xrapidx said:
Theres no plan to pay the car off over 20 years - I'll pay the same amount off each month, thereby paying off the car and home loan off much faster
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You save quite a bit of money by doing that.
I bought my car using my bond.

Oh yes, and if you paid "cash" for you're car, which is what this is, you're insurance premium will also be lower for some reason.
 
Paul_S said:
That's correct and it works like that at all the financial institutions as far as I know.
A new bond has to be granted and the old one cancelled or a second bond has to be granted that is separate from the original bond if the total amount of credit you want is going to be more than the original bond amount.

However if it's an access bond and you've paid off R100K of the bond you can just draw the money and pay the car loan off.i.e. If you have a bond of R1.7 million and you owe R1.6 million and it's an access bond you can access the R100K difference.
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:eek: Why would you do that?
 
Paul_S said:
That's correct and it works like that at all the financial institutions as far as I know.
A new bond has to be granted and the old one cancelled or a second bond has to be granted that is separate from the original bond if the total amount of credit you want is going to be more than the original bond amount.

However if it's an access bond and you've paid off R100K of the bond you can just draw the money and pay the car loan off.
i.e. If you have a bond of R1.7 million and you owe R1.6 million and it's an access bond you can access the R100K difference.
Click to expand...

alf101 said:
You save quite a bit of money by doing that.
I bought my car using my bond.

Oh yes, and if you paid "cash" for you're car, which is what this is, you're insurance premium will also be lower for some reason.
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Here's the part that I don't get - why should I register a new bond? Surely that involves fee's? I haven't even signed anything for the first one yet?
 
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