SA skills are in high demand in many other countries, but many locals working abroad would prefer to buy property at home - if they could obtain the necessary finance.
So says Rob Lawrence, national manager of originator Rawson Finance, who reports receiving around three enquiries per week from South Africans working abroad but wanting to buy residential property locally and needing a bond from an SA bank.
'The problem that most face is that the different banks have different policies regarding South Africans working abroad. Buyers often apply to their own bank, only to find that its policy is too restrictive to assist them with their deal. However, if they work through a reputable bond originator it is usually possible to get anything from a 50 to 70% bond, depending on which banks lending criteria are being applied and how they are categorised as borrowers'
The majority of those working overseas and applying for bonds, he explains, are well qualified but the banks are concerned about what they will earn when they return to SA. "As salaries here are lower, the banks view is that if they base the amount of the loan on the overseas earnings, the client might not be able to service the bond if he or she had to return to SA."
When an expat does apply for a bond, Lawrence says, he or she must produce an employment contract (preferably one with more than a year still to run), a work permit from the host country, salary slips and at least six months' bank statements from the bank into which the salary is paid.
If the South African is working on a ship, he will in all probability be paid in cash, and will need to provide the bank with evidence of income by producing a copy of his bank account/deposit account, as well as a schedule of payments from the Bursar in lieu of payslips.
*For further information contact Rob Lawrence on 021 658 7100 or email rob@rawsonfinance.co.za.
