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!

When did you learn life was easier buying in the bush!

Hi Geoff,


The bush sells itself, but is nice to know I may have influence.

So, How much do you need to raise? For properties zoned as Agricultural farms (like this one) and over 25ha it becomes quite difficult to raise cash and unfortunately takes longer than a normal home loan.

So yes 90 days may be needed. But to be fair houses and stands can take that long at times as well. It all depends on how quickly we can information to the bank regarding your financials, tax, banks account statements etc.


I utilise the services of Global Fundi for financing advise and while they do not raise finance for larger farms can offer excellent advise and recommendations. They can also assist to bring finance into the country at very favourable rates. I will ask them contact you, as he can explain the best options for doing so.

Kevin the seller was thrown a curve ball this morning!

He has been on a waiting list for buffalo calves because he would like them to get stuck into the long grass to reduce fire hazard. 6 became available and will cost him R16,000 each totalling R96,000. Obviously if he sells the farm he does not want to add more game to the offering and the value of this game cannot be included in the asking price. He wants to know if this will be a deal breaker. I would be a pity for him to loose such an opportunity stock is not easily available. The average auction price in 2010 for 56 auctions was R35,000 for a fully grown buffalo. They want to BOMA them on Friday and have Vets and staff lined up to do so. Let me know your thoughts?
Wish all deals were this cool!!