From Offer to Registration
Depending on the terms of your offer, you may need to pay a deposit, which normally forms part of the purchase price.
Then come the costs associated with transferring the property into your name. These may include transfer attorney fees, Deeds Office charges and transfer duty.
Under the current SARS transfer-duty rates, properties valued at R1,210,000 or less attract no transfer duty. Above this threshold, transfer duty is calculated on a sliding scale. Transfer duty generally applies where the transaction is not subject to VAT.
If you’re financing the purchase with a home loan, you should also budget for bond registration costs, including the bond attorney’s fees and related charges. Your bank may also charge an initiation fee.
Buyers may additionally need to make provision for amounts such as pro-rata municipal rates or sectional-title levies, depending on the property and transaction.
Once You Own the Property
Registration isn’t where the expenses end. Your ongoing household budget should make provision for:
- Home loan repayments
- Municipal rates and taxes
- Water, electricity and other utilities
- Levies if you buy in a sectional-title complex or estate
- Building and household contents insurance
- Regular maintenance and repairs
- A reserve for unexpected expenses or future improvements
Maintenance is particularly easy to underestimate. Setting money aside regularly can make everything from a leaking geyser to exterior painting far less stressful.
The best approach is to establish your true affordability before you start shopping. Knowing both the purchase costs and the ongoing expenses helps you choose a property you can comfortably enjoy long after the keys are handed over.Planning to buy? Let’s calculate more than just the purchase price.
Speak to a Century 21 property professional and let us help you understand the buying process, associated costs and what to expect on your journey to homeownership.