IN a recent conversation with someone, some bygone sour dealings with banks regarding bond applications (which are still prevalent today) resurfaced. So, to prospective buyers, especially the young ones starting out, take note and be forewarned.
Some 15 years ago, my wife and I resigned our jobs, sold our property in Pietermaritzburg and bought 6 000 m2 of land in Albert Falls for cash, wanting to develop it into three separate properties. With title deed in hand, I approached a bank, but was told that, irrespective of the value of the property (in this case at least four times the amount of the bond), if one is unemployed, one does not qualify for a bond. It also emerged that Albert Falls and its surroundings are considered to be “ high risk” areas, due to the Albert Falls dam wall.
This smacks of double-standard practice by the banks. For instance, take the Midmar Dam wall. Should this dam wall break, half of Howick would perish. And Inanda Dam, and the rest of the major dams in South Africa?
Of course, these walls breaking is virtually impossible, but there seems to be a different perception regarding the Albert Falls Dam wall.
This information and knowledge, if not known beforehand, can destroy a prospective property owner’s life ambition, and possibly their lives.