Posted by: Meresinah | 2014/10/01 11:22
My husband and I bought a flat and we now have a small baby and are looking at buying a house.
We do not want to sell the flat, thinking it would be good investment to keep.
We are looking at buying a house around R1 million.
My question is what is the process and what are the chances of us getting a second bond from the bank?
We have cut down our debts and no-longer have credit cards and clothing accounts. Together our income before deductions is R26 300.00.
Do we qualify?
Thank you for your advice!
Posted by: JP Farinha | 2014/10/06 07:32
It is always a great idea to consider the future needs and requirements of yourself, your partner and your family before purchasing property. However, there are always important factors to take into consideration before you take that step, even if it is your second property. With the global financial fluctuations, it may be challenging to obtain a second bond, but it is not impossible.
As a second-time buyer, it is advisable to get prequalified for a home loan by a bond originator or your bank. This will give you an indication as to what your current financial status is and what you’re able to afford. It also gives you assurance when searching for your potential home.
Your affordability and risk profile will be considered by the banks in relatively the same way as with your first bond. They will assess your credit history and income to expense ratio. Should you be in good standing, it’s a good idea to shop around for the best bond deals and compare the interest rates offered. You might find that banks have tightened their grip when it comes to interest rate reductions that they are willing to offer applicants since the purchase of your first home. And with good reason, as they need to know whether you’re able to afford a second property, with or without the possible rental income.
To determine whether buying another property is an appropriate investment, it would be best to approach a valid and registered financial advisor who will be able to analyse your financial situation and provide you with sound advice.
Buying a second home can be just as overwhelming yet exciting as the first, but by being well-informed and rational about your decision, you’ll surely find and purchase a home that will not only suit your needs and future requirements, but also benefit you financially.
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