First time home buyers often get caught by surprise when banks ask for a deposit in order to secure a home loan. “When applying for a home loan, banks will access your credit status to establish whether you will be able to meet the bond payments. Depending on the outcome, you are either given a 100% bond or required to put down a deposit of between 5 and 20% of the loan amount,” says Lee Mhlongo, FNB Housing Finance CEO. To assist lower income first-time home buyers, most banks and FNB … [Read more...] about Don’t go into debt to raise a deposit
deposit
Tips on saving for a home loan
Saving towards a deposit on a new home is not only a good way to prove that you are ready to take on the additional costs of being a home owner, but also has concrete benefits in potential lower interest rates and a higher chance of having the loan amount granted. "Saving is always a good idea, irrespective of the purpose, and the best time to start savings is always right now," says Tommy Nel, Head of Credit at FNB Home Loans. "Having the discipline of savings is especially important when it … [Read more...] about Tips on saving for a home loan
Don’t forget the deposit
In today’s property market it is common practise for a deposit to be made when the buyer provides the seller with an offer to purchase. “In most cases,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, “an agreement is reached between the parties that involves an agreed upon deposit amount to be paid on either the signing of the agreement or alternatively, at a later specified date.” He notes that while the inclusion and payment of a deposit is recommended, it is … [Read more...] about Don’t forget the deposit
What happens to your deposit if Agent is declared insolvent?
A tenant has asked the Property Poser expert what he should do about reclaiming his deposit when the rental agent has been declared insolvent. The reader writes that he has rented a property for the past five years and is now vacating the property. An agency acted on behalf of the landlord in managing the rental process and the reader would now like his deposit returned. However, the reader complains that the landlord refuses to return his deposit as the agent is under sequestration and he … [Read more...] about What happens to your deposit if Agent is declared insolvent?
Landlord lacks interest in deposit
A tenant has approached the Property Poser panel with an oft-repeated complaint about a landlord who has dealt improperly with his deposit. The reader explains that he gave verbal notice to his landlord that he would be vacating the property, which the landlord duly accepted. An inspection of the property followed but, when it came to returning the deposit, it turned out that the landlord had never deposited it in an interest-bearing account for the tenant's benefit. The landlord … [Read more...] about Landlord lacks interest in deposit
Unjust landlord gives two weeks’ notice
A tenant has approached the Property Poser experts about how to deal with a particularly difficult and unjust landlord. The reader explains that her problems began shortly after taking occupation of the rental property in February this year. It seems that the landlord presented her with a lease agreement for her to sign but the agreement was defective. It stated that the reader would pay no deposit when, in actual fact, she had paid a deposit commensurate with a month's rental. At the … [Read more...] about Unjust landlord gives two weeks’ notice
Common property rule a violation of privacy?
This week, the Property Poser experts deal with a double dose of queries from readers. The first question concerns a rental deposit, while the second involves the common property in a sectional title complex. In the first scenario, the reader rented a residential property and paid over a deposit. All went well until the reader gave her notice and subsequently vacated the property. The following day, she contacted the landlord to arrange to return the key and get her deposit back so she … [Read more...] about Common property rule a violation of privacy?
Suggested remedies to reclaim tenant deposit
A tenant has asked the Property Poser panel for guidance in retrieving her deposit, which the rental agency is withholding, despite her having paid the landlord directly in recent months. It appears that the reader and her landlord became friends over time, then discovered that, despite her paying her rental promptly on the first of each month, the agency only paid it over to the landlord much later. The tenant was subsequently advised by the agency that the rental should be paid directly … [Read more...] about Suggested remedies to reclaim tenant deposit
Tenant seeking rental deposit
This week a reader seeks expert advice from the Property Poser panel regarding an unreturned deposit on a rental property she vacated two years ago. Her landlord claims that she is liable for additional expenses such as sewage and refuse removal and is withholding the money in lieu of these. Although a written lease was concluded, the reader has checked the terms and it is silent on this point. As she feels she has not defaulted on any terms, she has refused to pay the additional … [Read more...] about Tenant seeking rental deposit
