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Practical property advice for Springs residents - one step at a time. 🏠✨
Costs, costs, costs
This month is about costs when you are buying or selling your home.
When buying a home, there are more costs involved than just your bond repayment and house price.
Banks no longer include transfer and bond costs in the home loan. We call it a loaded bond.
Only first-time buyers may apply for, and potentially qualify for, a 105% bond. Most buyers are expected to have these costs available in cash.
As a guideline, buyers should budget approximately 8% to 10% of the purchase price for additional expenses, including:
- Transfer attorney fees
- Bond registration costs
- Transfer duty
- Deeds Office and bank fees
- Moving costs and utility deposits.
Many sales are delayed because buyers are not financially prepared for these upfront expenses.
On the other hand, sellers also have some unforeseen costs. Before a property can be transferred, municipalities require rates and taxes clearance certificates to be issued.
This usually means sellers must pay approximately four months’ rates and taxes in advance before the transfer can proceed.
Sellers should also budget for:
- Bond cancellation attorney fees
- Electrical, gas, plumbing, solar or electric fence compliance certificates where applicable
- Possible repair costs
- Levies payable until registration takes place.
The proceeds of selling your home will only reflect in your account after registration, which can take months, so proper financial planning is essential.
Whether buying or selling, preparation is key.
Understanding the full financial picture from the beginning can prevent your sale or purchase from falling through completely and, at the very least, avoid disappointment, unnecessary stress, and delays later in the process.
Property remains one of the most valuable long-term investments you can make, but going in financially prepared makes the journey far smoother for everyone involved.
Janet Bosman
Candidate property practitioner, RE/MAX Express
071 165 8246
Practical property advice for Springs residents – one step at a time.
