Real Estate Investor Magazine South Africa November 2013 | Page 8

ASK THE EXPERTS
Property Finance

Meyer de Waal
Oosthuizen & Co Meyer de Waal Attorneys
www.oostco.co.za

Q

A.N Carrim Asks:

I have had some credit problems in the past, and
banks have declined my bond application (which
was done via a bond originator). I am very positive
about the block of flats I would like to purchase.
Could you possibly advise on what I should do?

A

Meyer de Waal Responds:

The type of f inance required may not be
a classif ied under a “normal ” home loan.
Working with an ordinary mortgage originator
may not be the best solution. It may be a better
solution to approach the commercial section
of a bank to apply for f inance as a loan of
this type ought to be treated as a commercial
loan. A commercial loan may have different
interest rates and loan repayment period than
a normal “home loan” – establish this during
the first meeting and also how much “weight”
the leases will add to the income required and
what requirements the bank will have. It is
unclear what your current credit status is and
we cannot provide any proposal in this regard
- any bank will reflect back on your past status
to determine the risk they have to take to
lend you money. Consider perhaps a rent2buy
transaction with the seller in that way you
secure the property and have time to repair your
credit profile. If you enter into a partnership to
co-own the property – the bank may still not
approve the loan as your own credit profile will
still be relevant. It is recommended that you
repair your credit profile as soon as possible.

Value Your Home

Q

Carol Reynolds
Pam Golding
www.pamgolding.co.za

Thando Maboneng Asks:

Deposit

Q

Justin Clarke
Private Property
www.privateproperty.co.za

Linda Viljoen Asks:

I am a new homeowner and am looking to
insure and value my home, what is the best way
to go about doing this?

I am a new landlord, and have just recently rented
out my property. I just want to know, when my
tenant’s lease is up, what is the procedure I need to
follow to return the deposit?

A

A

Carol Reynolds Responds:

As a new homeowner it is critical to obtain
insurance from a reputable company and to
investigate the best rates available on the market.
Often when you register a bond, the bank will
offer homeowners insurance as part of the finance
package. You are not obliged to accept the bank’s
insurance, and you are entitled to shop around for
other deals and then advise the bank accordingly.
It is critical that you obtain insurance for the
buildings, as the banks will not finance a property
without the requisite insurance. If you elect to
obtain insurance via another source, you will need
to advise the bank so that they can cancel their
insurance and approve yours.
With r