mandatory for some of the funding institutions
• Research shows that one of the worst eventualities occur when one applicant withdraws from the joint agreement .
• In the above case , the funding institution would render the existing joint bond agreement null and void . The remaining party would have to re-apply for a new home-loan .
“ A Joint Bond is a process wherein two ( or more ) people apply jointly for a home-loan .”
Mitigating Factors In order to minimise the possibilities of having to go through all this . You might want to keep a good credit record so that , in the future , you can get good credit for your home loan and a low interest rate payable monthly . Try and :
• Always keep a clean credit record by paying your accounts by or even before
• Buy cash to keep your debts at an absolute minimum , whenever possible
• Avoid attaching emotions to property , if necessary , build a decent shack in your backyard and rent out your main property .
• When the relationship between you and your partner or jointapplicant is in trouble do not delay the intervention of a third-party mediator or even an arbitrator
“ An affordability Assessment is one of the most lookedat aspects of a home-loan application by funding institutions .”
For anything that has to do with real estate , either for property buying or investing , it is important that research is made thoroughly . Imagine cancelling a six month old joint bond contract to start your own only because you missed some information about the possibility of your partner tapping out of the contract !
This is the worst thing to experience as a person whose income and credit record doesn ’ t allow them to have their own bond . If you think you cannot do it alone and have considered cohabition with your partner before , then investigate a joint bond . This could be your first step in your real estate investing journey .
SOURCE Snooks Estate
30 JULY 2021 SA Real Estate Investor Magazine