Bond restrictions cause problems
NEW RULE There are signs that overseas buyers are once again beginning to show an interest in the Cape property market but, warns Lanice Steward, MD of Anne Porter Knight Frank (APKF), they have to come to terms with the stipulation that non-South African nationals, as well as South Africans living overseas, are allowed to raise only 50% of their mortgage bonds in this country. The remaining 50% has to be in cash or provided through a non-South African bank. South African nationals living overseas who still have their bar-coded ID and South African citizenship are entitled to borrow on the same lending criteria applicable to a South African living here. When a South African is living overseas and has married a non-South African, special rules apply to the issuing of bonds if they choose to buy as co-partners. Steward says that APKF’s Atlantic Seaboard branch has struggled with these limitations on funding and has lost sales as a result. However, she says, the rule is on the whole a good one because it is usually far harder to extract monies from a poor bond payer living abroad than from one living locally. Generally, says Steward, it is advisable for a bond applicant to apply for the maximum he or she might be awarded.