10 Costs for aspiring homeowners
Category Property Advice
Advice not only for the first time buyer but also those who have not moved for a while and need a refresher on the costs associated with moving.
At Knight Frank we believe it is important to know exactly where you stand before you commit to buying or selling a property. For the first time buyer it can be a very exciting and daunting process; the Knight Frank team is here to help you and answer any questions you may have.
Make use of our extensive network, whether it be an attorney, accountant, removal firm or painter. No matter how big or small, please ask and we will endeavour to help you.
Here are our 10 costs for aspiring homeowners -
1. DEPOSIT - This upfront, one-off payment is made to the transferring attorney or estate agent's trust account. Putting down a certain percentage towards the purchase price shows commitment which can secure a reduced rate on a loan.
2. LOAN INITIATION & VALUATION FEES - These fees are charged by the financial instittion for processing the application and assessment fee that covers the bank for charges of property assessor. The maximum according to the NCA that can be charged is R6037.50.
3. TRANSFER DUTY - Transfer duty is for the buyer's account if the seller is not registered for VAT. If the seller is VAT registered, the buyer needs to pay VAT which will go to the transferring attorneys then SARS.
4. BOND REGISTRATION COSTS - A fee payable to the bond registration attorneys - to get the bond registered over the title deeds - as well as a sundries/postage and petties levy.
5. DEEDS OFFICE REGISTRY FEE - A fee charged by the Deeds office for the legal registration of the property into the new owners name and registration of a mortgage bond over the property.
6. OCCUPATIONAL RENT OR INTEREST - Payable if you take occupation of the property before it is transferred to your name.
7. MOVING COSTS - One off fee for removal of household goods.
8. RATES & TAXES - The seller pays these in advance until the property is registered in the new owners name.
9. INSURANCE - Premiums to cover the property against accidental loss or damage caused by fire, theft or natural disasters.
10. CONVEYANCERS FEE - Professional fee paid to the Conveyancer for handling the transfer of the property into the new owners name.
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Author: Knight Frank
