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