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27 November 2014

Ways to solve a bond deposit problem
Steeple - South Africa
Although banks in South Africa do grant bonds that cover the full purchase price of a property (a so-called 100% bond), this is unusual. Most banks will insist that the buyer puts down some amount as a deposit, and also pays for the transfer costs. So what are your options if your bank requires you to put down, for example, a 10% deposit and you don't have that amount of cash available?

Save for a later date
An obvious solution is to save your excess income until it accumulates to an amount substantial enough to be the deposit. This option is always available and will stand you in good stead when the time to buy comes, because the bank will see evidence of your ability to save consistently and will therefore be more likely to grant you a bond. The drawback is that saving up enough could take a long time and cause you to miss out on your dream home.
Ways to solve a bond deposit problem

Seven signs that you need a new nest
Harcourts - South Africa
Some people like moving house as it gives them the feeling of having a “fresh start” every few years. But for most of us, moving is a stressful experience we prefer to put off as long as possible.

Sometimes it is really necessary though, says Richard Gray, CEO of Harcourts Real Estate, and there are certain definite signs that the time has come for you to start looking for a new home.

The most common of these is that your family has outgrown your current home. “As children get older they need more space, such as their own bedrooms, and their own work/ recreation areas. They also don’t necessarily leave home these days as soon as they’ve finished studying, and if you also need to accommodate aging parents, it is very likely that you will need a bigger home.”
Needing a new nest

Consent needed to amend lease
IolProperty - South Africa
A property lease cannot be changed while it is in use, unless the landlord and tenant agree to any change. The tenant cannot, for example, refuse to pay water charges when the rental agreement was that the tenant would pay a monthly rental with additional charges for water and electricity consumption.

Similarly, the landlord cannot force the tenant to pay additional charges for water if the rental agreement was that water charges were included in the monthly rental. The landlord cannot introduce separate water meters for the individual account of the tenant without the tenant's consent.

If there is an agreement for the installation of separate water meters, the landlord is required to pay for the installation costs. This would also apply to the installation of separate electricity meters where the tenants share accommodation or rent individual flats.
IolProperty

10 Years of FNB Property Barometer
FNB - South Africa
From Boom to Bust and Back to Sanity all in a decade.

Some points from the 10 year Roller coaster include: Key house price stats over the last 10 years
November 2004 – year-on-year house price growth was 33.3%, and heading towards a February 2005 peak of 36.3%.

By February 2009, House Price deflation measured -8.2% year-on-year, and -15.4% year-on-year in real terms (adjusted for CPI inflation)

The FNB House Price Index showed a - 9.4% average house price decline from February 2008 to May 2009. In real terms, when adjusted for CPI inflation, this “correction” becomes even more significant to the tune of -21.7% around that time.

The most recent year-on-year house price inflation rate was a “tame” 5.9%, in line with CPI inflation.

With masses of information and insights, this presentation is a must read for anybody interested in understanding the nature and behaviour of property in South Africa.
From Boom to Bust and Back to Sanity

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