So ladies and gentlemen for today let's talk about purchasing of a house. Okay so if you are looking for a house obviously it means you need shelter. So there must be an advertisement that shows that a house is on sale, which could cost around about 1 million Rands and in that case it means you might need to apply for a loan at the bank. With regards to loan application it doesn't really matter whether you go to standard bank for a loan or FNB for a loan you can go to any bank to request a loan. What matters the most is that when you apply for a loan you must have a good credit record. So in most cases you are most likely to have a good credit record if you once had a loan from the bank and you were paying back the loan back to the bank in monthly instalments.
In that way the bank is able to determine if you are a good individual who pays back the loan. So if you purchase a house on a loan it must be very much clear in terms of the interest rates that the bank will be charging you. Remember that a house it's a property that appreciate in value so when you buy a property today, in 10 years time it will gain value so should you decide to sell the property in a period of about 10 years you will be able to sell that property expensive and most importantly you can only sell the property after you have paid all the debts that you owe the bank. You cannot sell property while you still owe the bank the money that it loaned you.
So in short you must first completely pay off the loan and only after you can be able to sell the property at the price of your own depending on the value of the house at that time you decide to sell it. Buying a house is an investment in a way because the moment you buy a house it means over a period of time it will gain value and you can resell at a higher price. What matters the most in this case is that whatever the bank has loaned, you must make sure that you pay all of that money back to the bank from there you will be able to sell that particular house and most importantly you must be careful not to just buy to sell because the moment you buy and after some time sell things that you do not need. Also make sure that you do not go beyond your budget because in most cases if you spend or buy using the money that you do not have you will end up failing to pay back the money that is due to the bank. Hence I'm saying at all times make sure that the money that you have is enough to buy what you need.
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