When buying a property, it’s essential to plan for the following potential expenses:
โ๏ธDeposit: Some banks may require a deposit as part of the loan approval process;
โ๏ธBond Instalments: Monthly repayments depend on your loan amount, interest rate that the bank has given and the loan term. Visit https://www.multinet.co.za/calculators/ to check what you qualify for and estimate your repayment costs;
โ๏ธTransfer Duty, Deeds Office Fees and Conveyancing Fees: Transfer duty is a tax paid to SARS and is based on the purchase price. No transfer duty is payable on properties R1,210,000 and under. For properties above this amount, refer to the SARS website - https://www.sars.gov.za/tax-rates/transfer-duty/ for the current transfer duty table. Deeds Office fees is a registration fee based on the property value. These costs are usually combined on the conveyancer's quotation. Visit https://www.propertyvinecapetown.co.za/bond-and-transfer... for a detailed estimation of costs;
โ๏ธBond Registration Fees: These are calculated on a sliding scale based on the loan amount and is payable to the bond registration attorneys. You can view an estimation here - https://www.propertyvinecapetown.co.za/bond-and-transfer...;
โ๏ธHomeowners Insurance: Required by banks for bonded properties. Even if the property isn’t bonded, insurance is recommended to protect your asset from unforeseen events;
โ๏ธCredit/Loan Protection Plan/Life Cover : Be aware of this as this may be a condition of the bond and you will need to provide cover before the bond registers;
โ๏ธMoving Costs: These will vary based on the size and distance of your move;
โ๏ธRenovation Costs: If updates or repairs are needed post-purchase;
โ๏ธFurniture: A new home may require new furnishings, especially for first-time buyers;
โ๏ธRates, Taxes and Utilities: Payable to the municipality. The amount varies according to area and property value (should the electricity and water be prepaid, this is excluded from the municipal bill and will be needed to be bought as and when required);
โ๏ธLevies: Applicable if the property forms part of a body corporate or homeowners’ association;
โ๏ธSpecial Levies: Occasional, additional charges imposed by the body corporate for major repairs or upgrades;
โ๏ธLocation & Commuting: Be aware of commuting costs - longer distances can significantly increase your fuel expenses. If you work from home, you’re in luck – no commuting means more savings!
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