The second problem is finding a person who is willing to sell their property on Installment sale. I don't know how you do this. Speak to a wealthy uncle or maybe a family member who qualifies for a second bond, but cannot afford the monthly Installment. You'll be surprised how easily banks give a second loan. If all else fails, do the naked dancing on the hilltop, listen to the wind and speak to your animal guide. Where there's a will, there's a way.

Clear your credit record

I know this is stating the obvious, but let me just say it. If you do have a bad credit record, you need to work out a plan of how to get out of that situation. It's so easy to get overwhelmed by financial mountains. You don't see your way clear to paying off that debt, so you just shove it to the back of your mind. Don't do this, the problem just escalates!! Go speak to a financial advisor and be honest about your situation. Ask them to help you draw up a plan to settle your debt and clear your name. Some of these guys are brilliant and know all the legal tricks to clear your name ASAP.

You also need to decide whether it makes more sense to settle your debt first or to buy a property while still paying off the debt. You need to compare the interest rate of your debt with the property growth rate, the interest rate of a bond and the rent you'll earn from letting the property. For example, if the property growth rate is 20% and the bond rate is 10%, but the interest rate on a credit card is also 20%, then it may be better to settle the credit card debt first. Do the math yourself.

An instalment sale is just one method of getting into the property market if you don't qualify for a home loan through a bank. My point with this article is that it is possible to get a home loan even when the banks tell you it isn't. The decision of whether you should buy a property at a slightly higher price and while you still have debt to settle is completely up to you and should depend, amongst other factors, on the property growth rate in your area relative to the interest rates of your bond and other credit facilities.
About the Author

Dirk Wessels is the owner and author of My Wealth creation website. You may freely distribute this article on condition that you keep this Author bio intact with an active link to my website.