rates, notice periods, etc.
Prevention is still better than cure.
rent at his/her own discretion or make
any other changes unless it has been
provided for in the lease agreement or
the tenants agrees to the proposed
changes.
So, next time you buy a rented prop-
erty, make sure you get and study a
copy of the lease agreement before you
sign. You may just avoid some very
costly implications that you have not
bargained for. If the seller and/or agent
cannot provide you with a copy of the
lease agreement, speak to the tenants
and make sure about issues such as
(April 2007) in Namibia is 13,5%,
quite high if you compare it to other
parts of the world but still much more
affordable than a few years ago. Clients
in very good standing with their bank
may be able to negotiate a rate that is a
bit more favourable. On a 20-year loan,
at the prime rate, expect to pay
approximately N$1200 per
month for every N$100,000
that you borrow.
In general singles can qualify for
a loan where the monthly pre-
mium will not exceed 25% of the
gross monthly income. Married
couples are allowed to spend
30% of their combined monthly
income on a housing loan pre-
mium.
The Henric short-cut estimate (at
the current prime rate) for the above:
amount.
Couples: Joint monthly salary x 25 = loan
amount.
"Transfer costs" in general refer to Law-
yer's Fees, VAT thereon, Transfer Duty
and Stamp Duty. Transfer costs for indi-
viduals buying property is determined on
but for a quick
and rough esti-
mate you can
work on 8% of
the purchase
price. Prices ex-
ceeding 900,000
w i l l c a r r y
slightly higher
costs and fees for
properties under
900,000 will be
pensive. A bond of 900,000 will cost you
approximately N$12,300.
Banks will consider every home loan
application based on 2 main issues, i.e.
(a) the credibility of the client and (b) the
valuation of the property. If either does
not meet their criteria, the loan will not
be approved. Then again, if you have an
excellent record with your bank, and the
value of the property exceeds the price,
transfer fees and bond fees together, you
may even qualify for a 100% loan includ-
ing all fees.
Please know that banks will not finance
commercial properties on a home loan
basis. Commercial loans are generally for
periods less than 15 years. Also keep in
mind that VAT is payable on the pur-
chase of commercial/industrial proper-
ties. Discuss the full implications with
your tax consultant.
house and flat rights, central.
N$ 460,000: Santorini - 2 bedr flats
in security vilage
N$ 350,000: Extension 9 erf with
great view.
N$ 1,2m: One of the very last sea-
front plots. Buy now and enjoy life-
long property appreciation.
mean and what are the implications to a
property buyer.
In very short, layman's terms, "huur
gaat voor koop" (inherited from the
Roman/Dutch law) basically means
that an existing lease agreement on a
rented property is stronger than a sub-
sequent Sales Agreement.
In practical terms, the buyer buys the
property with tenant and all and has to
abide by the terms and conditions of
the existing lease agreement. The buyer
cannot one-sidedly change any of the
conditions of the lease agreement. He
a great family that can enjoy what the
sellers have been enjoying for so
long. With 3 bedrooms, 2 bathrooms,
indoor braai, 2 cosy entertainment
areas. Double garage