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Author Topic: Poor property market holding you back in SA?  (Read 1957 times)

worsie

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Poor property market holding you back in SA?
« on: May 19, 2008, 06:33:06 am »
Thought I would share this with those of you who are putting off the big move until the property sells.

Did you know that if your house in on the market and its market value is higher than you owe the bank, you can renegotiate your monthly bond repayments with the bank. Once you have an offer to purchase you can drop your montly payments completely. Our bond repayments have now halved until our house sells. If I knew earlier on we could do this it would have helped tremendously.

Offline LoveNZ

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Re: Poor property market holding you back in SA?
« Reply #1 on: May 19, 2008, 07:15:06 am »
Worsie, can I PM?

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Re: Poor property market holding you back in SA?
« Reply #1 on: May 19, 2008, 07:15:06 am »

worsie

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Re: Poor property market holding you back in SA?
« Reply #2 on: May 19, 2008, 07:19:44 am »

Offline hadenough

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Re: Poor property market holding you back in SA?
« Reply #3 on: May 19, 2008, 06:02:29 pm »
That is amazing!  What a help O0

Offline ANTONK

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Re: Poor property market holding you back in SA?
« Reply #4 on: May 19, 2008, 06:47:24 pm »
Very interesting Worsie - thanks for the info  O0

Worsie is that all banks ?

Offline onix

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Re: Poor property market holding you back in SA?
« Reply #5 on: May 21, 2008, 08:25:42 am »
Thanks for the tip Worsie...I phoned my bank to find out what my options are and how it works etc. They said we can arrange with them to pay less, but that will cause my account to be in arrears which means I will be listed on ITC as a bad payer or something, even if you have an arrangement with the bank.

Our house is also in the market and it is VERY quiet at the moment...it looks like we are going to be stuck here because of the house. We have joked before and said we will just return the keys to the bank and leave...it is their house after all...  ;D

If we knew that this will happen to the property market we would have rented in stead  :tickedoff:



Offline PaulDK

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Re: Poor property market holding you back in SA?
« Reply #6 on: May 21, 2008, 09:23:45 am »
I was an estate agent in PE before I emigrated to NZ. When I sold my house I deliberately priced it very realistically in order to get it sold FAST. In the end I reckon I undersold it by about R60,000. That's not acceptable for most people, but I was ok with it - better the cash in the hand and carry on with life (as my thoughts went).

In SA if you have an ACCESS BOND you can call the bank every now and then and tell them to recalculate the repayments. This usually brings the monthly payments down because with each payment you make a portion of your borrowed capital is repayed. For my house in PE I called the bank every 6 months and told them to recalculate! This of course means that the house will take longer to pay off - but who cares? It's not like I was going to live in it for 20 years.

As is TYPICAL of SA banks, if you make a cash withdrawal from your access bond they will automatically recalculate the repayments (making repayments higher). But if you put the cash back in later, the sneaky buggers won't automatically recalculate to bring your payments down in line again! You have to request it.

When you have accepted an offer on your property and the papers go to the conveyancers, the conveyancer will notify the bank that the house is sold the transfer procedures have begun. They do this to get their hands on the title deeds (which the bank would have). The moment this happens the bond is closed and no more payments will occur. Which reminds me!! If you have an access bond and you know you are going to need some cash before final transfer, make sure that you withdraw this cash BEFORE your bond is closed!! I did this to have enough cash to buy currency before I left for Christchurch.

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Re: Poor property market holding you back in SA?
« Reply #6 on: May 21, 2008, 09:23:45 am »

Offline sm1976

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Re: Poor property market holding you back in SA?
« Reply #7 on: May 21, 2008, 11:11:18 am »
Thanks for the tip Worsie...I phoned my bank to find out what my options are and how it works etc. They said we can arrange with them to pay less, but that will cause my account to be in arrears which means I will be listed on ITC as a bad payer or something, even if you have an arrangement with the bank.

Our house is also in the market and it is VERY quiet at the moment...it looks like we are going to be stuck here because of the house. We have joked before and said we will just return the keys to the bank and leave...it is their house after all...  ;D

If we knew that this will happen to the property market we would have rented in stead  :tickedoff:

Offline sm1976

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Re: Poor property market holding you back in SA?
« Reply #8 on: May 21, 2008, 11:14:44 am »
Hi Onyx, I phoned my bank (standard) and they told me the same as you, with ITC etc..but then I phoned again, spoke to someone else who gave me a totally different story which agreed with worsie.

Best try and get hold of someone else, might be the same for you???  :gl:

Offline dedo

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Re: Poor property market holding you back in SA?
« Reply #9 on: May 21, 2008, 12:35:04 pm »
Just wanted to say we are in the same boat.  Starting to feel the pressure to sell our house below value in order to get rid of it :'(

Dedo

worsie

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Re: Poor property market holding you back in SA?
« Reply #10 on: May 22, 2008, 06:37:10 am »
Hey guys, well we have an Access bond through ABSA and maybe that's why they were willing to do this???. The arrangement made definitely has not gotten me on ITC because I subscribe to the ITC email still. But I will keep you updated should they decide to ever list me because of this.

As sm1976 said, phone again. Most people at the banks these days do not know what they talking about. I am sure if you get through to the right department things can be arranged. The banks in SA seem to be taking tremendous strain at the moment, their are thousands of people it seems that cannot pay their bonds. An arrangement for payment in my mind is better than nothing. Chances are they may accept it, if all else fails, plead poverty!!!

Thanks for the heads up PaulDK, about the access bond withdrawing the cash before the bond is closed!! Sneaky buggers they really are. Bloody knivers if you ask me.