A Fin24 reader seeking to purchase a home with cash he has acquired, asks which shall be the easiest way to buy the home.
I’ve a credit score rating of 588. I’ve no excellent money owed nor have I ever been underneath any debt overview. I’ve not too long ago had a windfall to the tune of R5 000 000 & I want to buy a three-bedroom townhouse which is in the marketplace for R1 699 000.
It got here to my consideration that I’ll have two choices for buying the townhouse:
1. Money Buy.
2. Bond Software.
I am keen to place down a deposit of R606 000 in direction of the bond. And with an curiosity of seven.three% over 20 years with SA Dwelling Loans, I am estimated to be paying R8 672 month-to-month in direction of my bond.
My dilemma is that this: I’m not employed. Subsequently I have never been receiving an everyday & steady revenue for about three years now. I additionally haven’t any accounts in my title presently, as I paid the whole lot off about two years in the past.
Will my bond software achieve success, no matter my lack of steady revenue over the previous few years?
Hardi Swarts, director of Autus Private Clients responds:
Congratulations on being debt-free! It’s a privilege to be financially impartial.
In my view, you gained’t qualify for a bond. However the good factor is that you just don’t want one, as you will have enough capital to buy the house. A money buy will prevent some huge cash in curiosity over the following 20 years. You’ll additionally save on different prices such because the bond registration and life assurance you’ll must cowl the bond.
What’s extra, it’s a purchaser’s market in the mean time, and also you might be able to negotiate a cheaper price, being a money purchaser.
Compiled by Allison Jeftha.
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