30 OKTOBER
STRENGTHENING BIDS: ONLY THROUGH HARCOURTS
A First: Preapproved bonds for auction bidders
For the first time in recent history, Harcourts Platinum has been able to get two national home loan providers to give a full pre-approval loan to registered bidders participating in an auction. That means a full bond approval indicating the bond amount, interest rate, and conditions.
“This is a ground-breaking change pioneered by Harcourts Platinum and removes all the risk for an interested bidder,” says Steve Caradoc-Davies, Principal of Harcourts Platinum, and Director of Harcourts South Africa According to Caradoc-Davies, one of the biggest risks a property purchaser has is the risk of their home loan being declined. By far the majority of property purchasers need to make use of bank finance. The result is that they need to make their offer subject to their finance being approved within a certain time frame. “Sadly this condition weakens their offer, and another buyer who offers to purchase cash, or with a lower bond amount, will often be deemed to be the stronger offer.” He explains that banks and mortgage brokers now offer to “pre-qualify” you – but that only gives you an indication of what they are likely to offer you. “It’s not a given that you will really obtain the finance. When the actual bond application is submitted after a contract has been concluded, the bank will often come back
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There is a further advantage for bidders who register and obtain a full pre approval: even if they don’t end up purchasing the auction property, the pre approval can be used to purchase another property, subject only to the bank valuation of that property with a lower bond amount, an interest rate you don’t like, or even a decline – based now on more extensive credit criteria and payment history that is accessed.”
BERGZICHT
Tel: (021) 883 8542 Plein Str 71 A, Stellenbosch info@hdk.co.za www.hdkprops.co.za
JOINT MANDATE
R825 000 Modern bachelor pad with beautiful mountain views from the balcony. Semi-furnished with fridge/freezer, washing machine/tumble dryer combination, microwave oven and built-in stove with extractor fan. One shaded parking. Only 200 m from main campus. Low levies and excellent rental income. Available for occupation 1 December 2014 @ R5 200 pm.
Esterna - 082 729 1161 esterna@hdk.co.za
Caradoc-Davies says when bidding at an auction the buyers’ bid has to be unconditional – without the protection of a clause that says the bid is subject to finance.
CABERNET
“That’s the strength of an auction – so the sale cannot be at the risk of finance. That fact often prevents buyers from bidding – as they cannot be assured of the fi-
nance they need.” He says with the certainty of finance the bidder can now bid at auction and know exactly what finance he will obtain, and how much cash he will need. “The result is that at such an auction the number of bidders is greatly increased – as it now includes those buyers who previously would not have been able to make an unconditional bid at auction.” Caradoc-Davies speculates that with more qualified buyers now involved, there will be greater competition at auction, and the seller can be assured of the best price on the day. “There is a further advantage for bidders who register and obtain a full pre-approval: even if they don’t end up purchasing the auction property, the pre-approval can be used to purchase another property, subject only to the bank valuation of that property.” Caradoc-Davies says this new innovation gives buyers peace of mind when bidding at auction, and beyond. “It means that, if they are not successful at the auction, they can still make offers on other properties that are now unconditional – thus making their offer much stronger and allowing them to compete with cash buyers.” The pre-approved bond is available only through Harcourts Platinum for buyers who register for Harcourts auctions.
AAN DE WEBER PARADYSKLOOF PARADYSKLOOF
GEDEELDE MANDAAT
R 1550 000 Ruim grondvloer woonstel bied drie slaapkamers, 2 badkamers. Geleë in veilige kompleks naby die Oude Libertas.
Teri - 083 415 9555 teri@hdk.co.za
ALLEEN MANDAAT
R 1900 000
R 3 590 000
R3 595 000
Open-plan and modern contemporary home with large windows to let in the light and stunning mountain views. 3 Bed-rooms, 2 bathrooms, designer kitchen with granite tops. Security estate
Netjiese 4 slaapkamer, 3 badkamer gesinswoning met ongelooflike berguitsigte op ruim erf! Kinders kan fietsry skool toe.
Vir die groter gesin. 5 slaapkamers, woonstel & heerlike noordfront kuiertuin in stil straat, sal sommer blitsvinnig sy nuwe eienaars se harte oorrompel. Geen trappe, geen verkeer, geen wind.
Teri - 083 415 9555 teri@hdk.co.za
Nicolette - 083 290 4441 nicolette@hdk.co.za
Melina - 072 888 7808 melina@hdk.co.za X1PCUMF9-EN301014