Real Estate Investor Magazine South Africa April 2016 | Page 9

Q&A

ASK THE EXPERTS

Q
I
Meyer De Waal
Finance Expert

I own a property in my personal capacity and owe a little money on it. I want to
buy my first property with my new registered, property investment company. Is it
advisable to take out an additional bond to finance this property for my business?

t may be easier and less expensive in your personal capacity and through your current
home load to raise finances to acquire the commercial property. The interest rates for
personal home loans are generally lower compared to those for commercial property
loans. The term for repayment on a home loan is usually 20 years and 10 years for a
commercial property loan, which increases the monthly instalment premium. I recommend
you quickly pay off the additional home loan.
The company can borrow the funds raised through your home loan from yourself (set up
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