Posted by: New at this.. | 2008/06/18

Financial problems - Bond!

I need some advice, and I dont know who to turn to - I hope somone can help me cause I really don't know what to do anymore!

My fiance and I bought land in Kloof. We took out a loan of R300 000 to buy it and we are paying R 3911pm over 240 months (excluding rates!) My share of this is R2000 excluding rates.

We have already paid R 14 000 to the people who helped us get the bond and we have paid our lawyers (transfer fees etc) We couldnt include this in the bond because it was vacant land they refused.

My fiance and I clear only clear R 10 600 and after expenses (cell, insurance, bond, groceries and toiletries, petrol – does not include anything for entertainment, birthdays etc) we are both left with R1055 at the end of the month – now we need to subtract R1000 each for the wedding/emergencies, leaving us with R55 each at the end of the month! This is where we are right now.

Next year we need to build, but the land we bought is not level – so it needs to be leveled before we can build (R1500) We haven't saved anything up for this – my fiance is thinking about using his credit card to do this – I somehow have to find the cash to pay for half and we need to pay back the credit card debt

We still need to take out a loan to build on the land - cost of a granny flat to build is around R250 000 (including lights and water hook up if my fiance and his dad build it) and we will pay round about R2500 per month over 240 months plus we will now have to pay rates which is another R600 – so we will need to pay R1550 each. We still need to submit plans for approval, need someone to look at them before we submit – I don't even know how much this costs!

The bank probably wont give us this loan because as you can see we dont have the disposable income available to do this

What do we do? We cant just sell now because we are selling at too much of a loss

We can ask the municipality if we can subdivide the land but who will buy a portion when everything is going up?

We could get an investor in who will get a cut if they help us out with the cash to build and when we sell they get a cut – Sometimes I think my fiance lives in a world where everyone eats rainbows and farts butterflies

I really don't know what other options we have. I am really stressing – I am in tears every month because we never have any money and I really don't want to live like this for the rest of my life. I feel like I have made the stupidest mistake. My fiance says I don't know what I am talking about - Granted I don't, but neither does he!

I am afraid he will go ahead with one of his stupid plans and I will responsible for half of all the debt! I have nothing as it is and this really isn't the way I planned on starting my life with someone. I am constantly stressing - I cant even sleep anymore!

Any advise???

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Our expert says:
Expert ImageCyberShrink

I hope other readers can help advise you here --- my financial skills are so non-existent, you would be better off without my advice on this one !

The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical exmanication, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.

Our users say:
Posted by: Belinda | 2008/06/19

If you can sell - do it, you will loose less in the long run. Make it very clear to your fiance that you are not incurring any further debt on the property and if he goes ahead and does it anyway - it will be all for him to pay, if you dont sign for the debt you do not have to pay it. I find sometimes, because I am emotional it is better for me to write my thoughts down in a letter from and give them to my hubby, that way I can reread it first and change it to sound rational and clear and he does not feel overwhelmed by my emotions.

Reply to Belinda
Posted by: hela | 2008/06/19

please stop everything because same thing happened to me about the financial problems we r now on divorce process because of money.

Reply to hela
Posted by: slr | 2008/06/19

sell....even if at a loss.

plan a smaller wedding....big weddings are a waste of money considering the 78% failure rate anyway

why have a big house? settle for a cute townhouse; that is all you can afford right now. Kloof is posh; if you don't have money, don't go there!!

Reply to slr
Posted by: Zexeon | 2008/06/18

Maybe your guys could think about options to generate more income. Wish you best of luck.

Reply to Zexeon

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