How can we help you: managing personal finances

Forums » Forum Topics » Property » Property Burden?????
 
 

Property Burden?????
Bookmark and Share  

rated by 0 users
This post has 1 Reply | 2 Followers

Top 500 Contributor
Male
Posts 1
Reply
Mxolisi Posted: 01-19-2010 16:34
Hi, I stay in Jhb and own a 3 bed flat (sectional title) in Richards Bay with a tenant renting, and so i also rent this side as i cannot afford a second bond right now. I want to buy a free-standing house for myself and my family, but am now finding myself held back by the "burden" in Richards Bay in the form of bond repayments, levies and rates. I can't get a second bond without a minimum down payment and cash to cover transfer costs, all to the order just above R80k. As it stands, I probably can accumulate that amount of money in 18-24 months, but that's too far for me, I need to move on with mya family and not feel "stuck" because of this property.
Do our banks not offer some service such as the bank buying the property in exchange for a consumer getting another bond (even higher in amount) with the same bank, and then the bank can sell that property. I've listed the flat for sale, but can't seem to get a buyer. My only bet now is to try and sell the flat, even if i don't make much of a profit, but as long as i can cover the bond amount owing and whatever fees that may arise.
I'd like to know what you guys think......
Top 10 Contributor
Male
Posts 202
Reply
Attie Claassens replied on 01-21-2010 9:09

There is an old Afrikaans saying: " 'n Dwaas verkoop sy plaas." You would be a fool when you sell an income producing asset not replacing it with another asset. The only way you will know whether you will do the right thing is when you investigate the option and do the necessary homework, even if you need to find someone helping you with the calculations.

What ever action you take, you will have to live with the consequences thereof.

Bill Gates opt to stop his studies to grap the opportunity providing a operating system for the IBM PC. He did not have any idea that this decision would eventually make him one of the most influencial men in information technology.

 

Page 1 of 1 (2 items) | RSS