Here's a first sighting (at least for me) of a developer in trouble.The Developer is incredibly anxious to sell due to credit problems and has put together the following awesome deal
- Double Storey 2 bedroom unit with bathroom.
- R20 000 deposit secures which is REFUNDED back to you on TRANSFER of unit.
- R12 000 REFUNDED back to you 7 days after transfer of unit and R5000 per month for 12 months
- Transfer Date: March 2008
Units will only be for sale until the end of November 2007 which is when the Developer will have to buy all outstanding units himself.
Well I'm looking at the calendar and it certainly is not November 2007 anymore. And all those cash back deals? Extremely shady to me.
Why not just take R72 000 (12 000 + R 5 000 * 12) off the price? Because then any commission related to the price of the property goes down. You'll be paying that R72 000 "discount" back via your bond at 14.5% which means in actual fact you'll be paying an extra R221 000 over 20 years (R 921 a month).
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