You have finally found your dream home in a cute country village. The offer is in, the paperwork is done, and the bank has indicated that you will have no problem getting a bond. Its all going very well…

Finally, your bond approval arrives, but it is only for 90% of the value of the property. Now you need to find 10% deposit in cash that you just do not have. Before you give up on your dream, remember that there are other avenues to get a deposit. Here are a few ideas:

What can be used as a deposit?

1. A cash amount that a buyer can deposit with the conveyance attorney;
2. Government State Guarantee;
3. Pension Backed Loan – This is a loan against your Pension Fund which can serve as a guarantee (Selected employers only – your bond originator will be able to tell you if you qualify);

Some Type Of Collateral Security for example:

• A Life Cover Policy with a surrender value (older than 2 years)
• A Fixed Deposit
• Surety with security (only through directly related family members).  Please note that as the buyer you will still need to be able to afford repayments on the loan and both buyer & surety have to qualify in their own regard.

Now sit back, relax and get ready for moving day.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Many South African first-time homebuyers and sellers remain surprisingly ignorant of the basic legalities surrounding any property transaction.

So says Lanice Steward, MD of Anne Porter Knight Frank (APKF), who adds that in our training sessions with agents, it has become necessary to insist that they give clients a short educational rundown.

She says first-time homebuyers, in particular, tend to have absolutely no idea how property is bought and sold and how to go about getting a bond.

When the deal looks as if it will go through, one of the most common mistakes is to fail to appreciate that a signed contract is legally binding: If a better offer or prospect comes up the buyer cannot simply change his mind. Some young buyers have heard about the cooling off clause and think it applies across the board. In fact, it applies only to properties valued at under R250k.

Another common first-time buyer mistake is to underestimate the extra? costs of a transaction: transfer duty, attorneys fees and Deeds Office costs. Good agents, said Steward, will draw a buyers attention to these early on.

Some clients, said Steward, are scared of any documentation and try to avoid putting matters in writing until the eleventh hour.

This can be disastrous when it comes to submitting an offer because, quite apart from the fact that a written offer will put the agent in a far stronger position to negotiate, it is in fact illegal to make such an offer verbally.

Inexperienced buyers, added Steward, often show a marked reluctance to invade a home owners privacy?. As a result they fail to inspect homes carefully and never fully appreciate the partially latent defects and flaws.

A good agent will, of course, insist on faults being listed in written form but there is nothing which can replace a hands-on inspection.?

When buying a property always ask for the home plans. It is essential to see these.?

Once you have them, said Steward, hold onto them. Some years ago a fire at the Deeds Office destroyed several hundred plot plans, leaving owners, who did not have copies, with no option but to bring in a draughtsman and have them redrawn.

Then, too, many of those planning to buy a property using a trust, a close corporation (CC) or a company as the holding vehicle, should take note not only that this vehicle must have a tax number, but that the taxes must be fully paid up.

As soon as money is paid to achieve a transfer, there will automatically be an investigation into the holding vehicles tax status. If any money owed is still outstanding, the sale will be blocked.

If the tax defaulter is the seller, SARS may be prepared to take the outstanding sum from the money paid. If, on the other hand, it is the buyer, SARS will insist on the money being paid up before any further transactions take place.

Mortgage Plus will find the right deal for you. Guaranteed!

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za