6 hidden costs of buying a home
Category Industry News
First-time buyers are often unaware of the hidden costs involved with buying a home. We highlight six of the key things you need to budget for.
In today's financial climate, it is very rare that a bank will provide buyers with a 100% bond. This means buyers will be required to pay a deposit which is calculated on the purchase price. Generally, buyers can expect to pay between 10% to 30% of the purchase price.
- Transfer Duty
Transfer Duty is a tax payable by every buyer regardless of property type to the South African Revenue Service (SARS). It is collected by the conveyancer on behalf of SARS. The duty is calculated according to the value of your property. The higher the value of your property, the more duty you pay. If your property costs less than R900 000 you are exempt from paying transfer duty.
- Bond Registration & Initiation Fees
The bond registration fee is a once-off fee paid to the conveyancer for registering the bond. The bond initiation fee is a one-off fee covering the cost of processing the home loan application. This is a once-off fee covering the cost of processing the home loan application.
- Conveyancer Fees
The conveyancing attorney will charge a fee for their role in getting your new home transferred from its previous owner to you as well as for getting the property registered in your name.
- Dees Office Fees
This is the final step in the process and takes approximately 4-8 weeks. The Deeds Office will complete all that is required to register the bond into the buyer's name. A fixed fee is payable for this service.
- Moving Costs
Many buyers do not factor in what it is going to cost them to move all their furniture and valuables from one property another. These costs can be significant and are often not considered until the last minute.
Author: Adrienne Hersch Media Team