South Africa currently has no vehicles in place to finance off-shore properties.
The only means the client has open to him is to take a further advance on his property in South Africa. Should he want the lending to be in South Africa, where he would be generating an income, the following two criteria would apply:
1. If the client’s income is as such that he does qualify for the loan. Total loan amount should not exceed 30% of his gross household income, and he will have to have enough surplus funds after all his commitments have been met, to service the bond payments.
2. If there is sufficient value in the property for a further loan.
Kindly bear in mind that the lending policies in SA have changed considerably over the past couple of months, and the Banks do not give loans up to 100% or more of value any more. The different Banks use different measurements in their loan to value policies, thus each case must be vetted on its own.
The client can, however get a bond in Europe, should he have the means and assuming that he will rent the property out, just keep on paying the bond out of his rental income. Once again it is not clear what kind of investments he refers to. The above will be applicable if he is investing in property.
Margaret Harrison - Development Consultant Bergkriek Properties
www.bergkriek.co.za | 
