In December 2012 be decided to buy a property for R825, 000.
It is a old house and needed some renovations. My personal banker at ABSA suggested taking out Personal Loans (She was the one to offer me a ABSA personal loan) to cover these renovations as we have to wait 6 months before we can apply for a second bond.
Bond registered in March 2013 and we started renovations.
In June I tried to contact my personal banker to find out about that 6 month rule... she has left ABSA.
Found out at another consultant that my personal banker was talking nonsense.
Now applied for the second bond... took just over a month for a proper response and was given only 80% of valuation.
First the property was bought for R825, 000 and valued by ABSA at R1, 111, 000.
Renovations cost me around R500, 000. So that will be R1, 325, 000.
House valued by ABSA according to bond attorney at R1, 625, 000. So 80% is R1, 300, 000.
I was offered R347, 000 totalling R1, 172, 000.
I now sit with a whole lot of personal loan debt due to ABSA.
Very funny calculations made by ABSA. Full proof of all the renovation expenses but this not considered.
I have learned my lesson. Never deal with ABSA. You will only end up worse off.
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