Love to buy a place in the bush - what do the banks offer?

So you have now been for a weekend away and have just fallen in love with the bush and always wanting to own your personal piece of bush heaven, you meet with a great agent who finds you exactly what you want.


The only problem is you need some finance assistance, because sure you have a deposit in pounds or dollars and getting that across is quite simple because you can arrange a free money transfer from England to South Africa and all you need is a mortgage for the balance.  But what are the restrictions, what are the costs and how do you get a home loan on a piece of vacant land or on your bush house or bush lodge.


So here are some thoughts and scenarios' but if you want details email a property finance specialist today!


Vacant Land - well Nedbank do not offer loans on vacant land. ABSA and FNB offer 60% loan and Standard bank offer 65% and 75%.  The rule of size is maximum 8,5 Hectares but under certain circumstances up to 20 Hectares may be considered.


Bush House or Bush Lodge - well depending on the value and lloan required and whether you are a non-resident (50% max) or a non-resident with work permits (80% max) to SA citizens (up to 100% depending on the property value) - once again speak to your property finance specialist. The rule of size is maximum 8,5 Hectares but under certain circumstances up to 20 Hectares may be considered.


If this is a commercial undertaking then a different loan is applied for and the maximum loans are 60% but you will pay a raising fee of up to 2% and even then there is no guarantee of getting a loan.  Business plans, financials and forecasts together with the seller and buyers pedigree is required.


So can you do it, yes!  Is it easy no!  Speak to your property finance specialist first!  All good!