Bond re­stric­tions cause prob­lems

Business Day - Home Front - - HOMEFRONT -

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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.