Thanks aviduser you can visit me in The Paerl too.
As for buying property, it is paid up front in instalments usually over 18 months, if you need finance the bank will do this but you'll need to pay interest on the increasingly larger amount of loan. Usually you'll have to put 10 per cent down, the bank will give the development company the other 10 per cent, so you'll be paying interest on that ten per cent immediately. Then about 3 months later the bank will pay a quarter of 75 per cent remaining, so you'll pay an increased rate of interest, then in another 3 months the bank will pay another quarter of 75 per cent and so on. When 95 per cent is paid, the remaining 5 per cent is withheld until you are satisfied and you get the keys and complete. The interest rates are approx 8.5 per cent, or 8.25 if you decide to get your wage paid into their bank. This is a high rate of interest, so best to try to pay in cash if you've got it, or put a big deposit down, or pay it off as quickly as you can by paying in extra. Of course if you do have the cash, you have to decide whether this is the best place for it as you are foregoing interest of 5 per cent in a savings account. Everything's a risk so good luck!
Thanks aviduser you can visit me in The Paerl too.
As for buying property, it is paid up front in instalments usually over 18 months, if you need finance the bank will do this but you'll need to pay interest on the increasingly larger amount of loan. Usually you'll have to put 10 per cent down, the bank will give the development company the other 10 per cent, so you'll be paying interest on that ten per cent immediately. Then about 3 months later the bank will pay a quarter of 75 per cent remaining, so you'll pay an increased rate of interest, then in another 3 months the bank will pay another quarter of 75 per cent and so on. When 95 per cent is paid, the remaining 5 per cent is withheld until you are satisfied and you get the keys and complete. The interest rates are approx 8.5 per cent, or 8.25 if you decide to get your wage paid into their bank. This is a high rate of interest, so best to try to pay in cash if you've got it, or put a big deposit down, or pay it off as quickly as you can by paying in extra. Of course if you do have the cash, you have to decide whether this is the best place for it as you are foregoing interest of 5 per cent in a savings account. Everything's a risk so good luck!