Is there someone who can provide me with answers in buying a home.
Is it possible for a woman in this industry to buy a house?
What about payslips and SARS?
Till now I have a very good name at my bank... Last month they upgrade my credit card (which is fully paid up) from Elite to Prestige. I never had a bad name or were black listed ever. Does things like that count?
I pay R11000 a month on a rental home which I'd rather pay of on my own home. Will they offer me a bond of a million Rand or less? If I look into a good neighborhood, I can't really buy a house for that amount but a townhouse which is my second option. In good months, will it be wise to pay double instalments?

Paige

You can go to your bank and get pre-approval on a bond. This will basically tell you if and for how much you will qualify. They will also tell you all the conditions, and what amount you would need for a deposit, normally around 5% to 10%.

The final approval will be subject to valuation of the property itself once you have decided on it.

Yew

Thanks yewrev... but will they give me a pre approval without proof of income or not? I don't bank all my money... some is in a savings account from another bank and the rest I live on.

Paige, good luck with getting a bond, anyone self employed in any industry must jump through more hoops than Boswell Wilkie's Lions did in all their years of performing. I do not mean to discourage you, just sharing my experience with banks in the past.

Well... that's the things I want to know... thanks for sharing. Paying R11000 on someone else's property is just so sad...

Paige

It cost nothing to ask, will take a hour or 3 of your time to visit the bank and to apply. They will tell you for how much you do qualify etc. Some banks even allow you to do an online application.

the advantage of pre-approval is that you do know exactly what you qualify for and can search for a property within the approved bracket

It is not as easy for someone that is self employed or a contractor to get finance, but it is possible, all depending on your credit record.

Hi Paige, firstly all banks have a basic formula to calculate your affordability on a property which is the 30% rule. This means that they will not allow you to spend more than 30% of your declared gross monthly income on a bond repayment. E.g you declare gross earnings of R30k pm, the most they will allow you to pay towards a bond will be R9k, which at prime interest rate over 20 years is roughly a 900k home.

Second step is your credit history and what deposit may be needed etc, if you are fortunate to get a 100% bond, it would be advisable to take it and make it an access bond so you can always put additional funds in when you have them and have instant access to them should the need ever arise. Remember the bond percentage is determined by your risk profile and the valuation on the property.

Finally and most importantly comes the self employed problem, most banks will ask for either 2 years financials from an accountant as well as SARS ITA 34 documents as well as your last 6 months personal bank statements as a proof of income. Unfortunately without these it will be quiet difficult but not impossible.

Should you want to have a chat over the phone or need more advice with this process please let me know, I am more than happy to help.

My best
Tomm

Thanks a lot... I can only try... just scared of SARS as I don't pay vat... or even registered for it...

Ah yes something is forgot to mention on my above post, when budgeting for a property don't forget to find out what the cost of your levies will be on a monthly basis if in a complex as well as your rates costs due to the municipality. Something you don't have to worry about as a renter

Of course yes... that is things I would never thought of... thanks