Costs when Buying Property

Every now and again we get buyers viewing properties or visiting our show houses with no idea that there are transfer and registration costs payable when buying property. Some of them also think that this can be financed with the bond amount.

So just to shed some light on this subject, especially for first-time buyers ….

When buying property, the purchasers (in most cases) are responsible for paying  the Transfer Costs as well as the Bond Registration Costs to the Transferring Attorney upon request. This is done after all suspensive conditions in the Sales Agreement has been fulfilled and needs to be paid in order for the registration process to proceed. In the case where someone buys a property in a new development these costs or a portion of these costs may already be included in the sale. Most property websites and portals as well as banking sites have built-in cost calculators where these costs can be calculated. Please have a look at our website at http://www.steynrealty.co.za for more detail.

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Transfer Costs: Is paid on the full sales / purchase price.
Bond Registration Costs: Is paid on the bond amount only.

Both these costs are calculated by the Attorney firms involved according the a schedule and sliding scale. Please look at the following example:

Full Purchase Price: R 1 500 000
Deposit Amount: R  100 000
Bond Amount: R 1 400 000

In the scenario above, the following estimated costs will apply.

Property Transfer Costs (R 50 298.00)
Attorney Fees: R 23 598.00
Transfer Duty: R 25 500.00
Post, petties, FICA and other: R 1200.00

Bond Registration Costs (R 29 985.00)
Attorney Fees: R 22 800.00
Bank Initiation Fee: R 5 985.00
Post, petties, FICA and other: R 1200.00

TOTAL COSTS: R 80 283.00

The Purchaser in the above scenario will then have to have R 180 283.00 cash available to cover the deposit and costs. Costs cannot be added to the bond amount / purchase price as this is not allowed by the Banks or Attorney Firms.

It is very important that prospective buyers take the time to calculate all the various costs and payments that they will be liable for before shopping for a new property.

For any queries on the above, please feel free to contact us or send us an email to marnus@steynrealty.co.za / juanita@steynrealty.co.za

Hope you have a great day …… off to go sell some houses.

 

 

Fixtures and Fittings

Fixtures and Fittings ….

Every Offer To Purchase (‘OTP’) has / should have a specific clause where the Purchaser and Seller agrees on which fixtures and fittings to be included or excluded as part of the Sale Agreement. This is done by mutual agreement on presentation of the OTP. Once the OTP is signed by all parties involved it becomes very difficult to change any clauses or conditions and must therefore be done prior to acceptance. Sellers should, as part of the Mandate Agreement be advised by their agents to specify any inclusions or exclusions of fixtures and fittings in the mandate agreement so that prospective purchasers can be informed accordingly when viewing the property.

To make this process easier, our OTP includes the following items as standard fixtures and fittings thatMAY NOT be removed unless otherwise specified in writing. The specific clause reads as follows ….

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“The Property is sold with all fixtures and fittings of a permanent nature, which the Seller warrants are fully paid for, and owned solely by the Seller, including all existing garden trees / shrubs / plants, stove, electrical light fittings / shades and (if any) curtain rails / rods / pelmets / blinds, swimming pool equipment / filters / motors, fitted carpets, fitted kitchen storage units, post box, electrical geyser(s), TV aerial, DSTV satellite dish, burglar alarm system, door-bell / knocker, keys and remotes. All electrical items are to be in working order on date of occupation. The purchaser is aware that the radio transmitter connected to the alarm system (if applicable) is the property of …………………………………………Security Company”, where the radio transmitter is therefore excluded.

The OTP also gives the Seller / Purchaser the opportunity to specify any inclusions / exclusions to this clause. Inclusions would be any NON-fixtures that will be sold with the property. Exclusions would be any fixtures that will be removed are not sold with the property. Apart from the items mentioned in the clause above, fixtures and fittings in general can be understood as being as the following:

Any items that form part of the permanent structure of the property such as built-in cupboards and vanities, mirrors, towel and curtain rails, blinds, shutters, light fittings & switches, light bulbs, security systems, built-in heaters, fans and air conditioning systems, gate / garage door motors & automated systems or anything that is bolted, nailed or screwed onto the property can be seen as fixtures. If, for example, there are bathroom cupboards hanging on the walls of the bathroom with towel rails attached to the cupboards, Purchasers viewing the property could assume that these cupboards and rails are fixtures as they won’t know if the cupboards are bolted to the wall or hanging on screws / nails like portraits / paintings. Sellers might think that these are non-fixtures and remove them causing huge frustration and unhappiness when the new owners take occupation.

According to our OTP the complete DSTV dish or any other antennas / dishes, brackets and cables are also seen as fixtures and therefore, unless excluded, are sold with the property. As previously mentioned, the Seller should exclude all of these items during the listing and mandate process and prior to signing any OTP in order to avoid unnecessary unhappiness and disappointment later on.

Should any items, deemed to be fixtures, be excluded, the purchaser may request that it be replaced by the Seller with a suitable alternative / replacement item. Take the DSTV dish for example: If the Seller has a very expensive, multifunctional DSTV dish and “LNB” combination and he / she would not like to sell it with the property, it should be excluded in writing and replaced with a suitable replacement / alternative system if necessary. The Purchasers may also request that should any fixtures be removed from the walls of the property where it was bolted onto the walls, that the holes be filled and the walls painted, or not, depending on what has been agreed. Purchasers may also decide to include certain items that are non-fixtures such as loose standing cupboards, pot plants, curtains etc. which the Purchasers may or may not agree to.

All the above should be negotiated and written into the OTP prior to finalizing and signing of the OTP to avoid any future misunderstanding.

We hope that you find the information useful. Happy selling. If you need any assistance with the sale of your property in the Roodepoort, Gauteng area, please do not hesitate to contact us:

Marnus Steyn: 072 264 7806 / marnus@steynrealty.co.za

Juanita Steyn: 083 604 1231 / juanita@steynrealty.co.za

To view all out available stock, please visit our website at www.steynrealty.co.za

You can also like and follow us on Instagram, Twitter and Facebook at @steynrealty

Rental Management

In between all the selling, we (Steyn Realty) also offer Rental Management Services to our Investor clients and Landlords. These services are offered through the TPN RentBook and Credit Bureau systems and include but are not limited to the following:

  1. Listing, advertising and marketing the property at no additional cost to the Landlord / Owner.
  2. Setting up viewings with prospective tenants.
  3. Application screening.
  4. Credit vetting through Trans Union ITC, Experian and the TPN Credit Bureau.
  5. Explaining, negotiating and completing the TPN Lease Agreement.
  6. Monthly invoices / statements to tenants.
  7. Capturing of payments on the TPN RentBook system.
  8. Reconciling accounts on a monthly basis.
  9. Sms notifications / reminders on outstanding payments.
  10. Payment of monthly expenses on behalf of the Landlord like levies etc.
  11. Owner / Landlord Statements & reports.
  12. Tax Statements on properties.
  13. Management of general maintenance issues as they arise.
  14. Periodic visits and inspections as agreed with the Landlord and the Tenant.
  15. Facilitating maintenance work to be done as and when necessary.

Most of the properties that we currently manage are either in complexes or estates where we then pay the respective levies to the managing agents on behalf of the landlords. We also make payments to the council and to contractors where applicable. Tenants are charged for their water & electricity consumption and in some cases also for security, sewerage, rates & taxes etc. depending on what has been agreed to in the lease agreement.

We don’t charge any upfront commission for the management of a property or the tenant. Our management fees are 7% of the monthly rental with a once off placement & renewal fee.

For any queries regarding our rental services, please email rentals@steynrealty.co.za or contact Marnus on 072 264 7806 / Juanita on 083 604 1231.

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Property Stock Update

Below is a list of some of our stock that we have available To Let or FOR SALE at the moment …. we need lots more.

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We always need new stock for our buyers. We get lots of requests for Rental and Sales properties in the Roodepoort areas, anything from Pinehaven to the 14th Avenue off-ramp.

If you are selling, let us know. If you are looking for a tenant, let us know …. if you want someone to take over and manage your rental portfolio, let us know.

We can help …. Marnus 072 264 7806 / Juanita 083 604 1231

http://www.steynrealty.co.za

MTB – Tips for “Starters”

Herewith some tips that will get you started ….

  1. Get a proper bike … by this I don’t mean expensive. Ask around, 2nd-hand is fine … a new “dual-suspension bike can set you back anything from R 25 000 to R 50 000 to start with. I bought my bike for R 12 000 from a client and it has served me extremely well. It’s not about the bike …. but a good bike helps you to enjoy the ride.
  2. Get your bike set-up correctly. Part of the enjoyment of riding outdoors on the trails is being comfortable on your bike. Although you might feel uncomfortable on the bike at first, having it set-up correctly is vital as this can also prevent injury.
  3. Join a group / club … riding alone is a no-no. Find out where there are groups going out on weekends or mornings that you can join. You get to know the area, make friends and they can help with any mechanical issues, punctures etc along the way while you watch and learn.
  4. Go tubeless. Make sure you get a tubeless conversion done on your wheels or that you buy a bike that is already tubeless. This will save you lots of hassles on the trails.
  5. Cary the basics. Never leave without the basics, plug-kit, CO2 bombs & adapter, spare tube, some cash, tyre levers … if you don’t know what these are … find out.
  6. Take it easy … Rome wasn’t built in a day. You can learn a lot from friends who have been in the business for long but you are not training for the Epic or trying to catch Greg Minnaar down the hill … relax, take your time to up your fitness and your skill level.
  7. Remeber – No Helmet – No Ride …. don’t be a hero …. enjoy the ride!

Stock – Some of our latest listings …

We focus predominantly on property sales and rentals in areas from Sterkfontein / Pinehaven side, along Hendrik Potgieter towards Clearwater Mall and Wilgeheuwel Hospital.

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what we do …. @steynrealty

We have recently sold some of our stock and we urgently need new rental and sales stock for our buyers. Here are some of our current stock:

For Sale:

  1. Windsor West – R 690 000 – CLICK HERE
  2. Wilgeheuwel – R 899 000 – CLICK HERE
  3. Wilgeheuwel – R 935 000 – CLICK HERE
  4. Wilgeheuwel – R 950 000 – CLICK HERE
  5. Wilgeheuwel – R 1 125 000 – CLICK HERE
  6. Allen’s Nek – R 1 500 000 – CLICK HERE
  7. Little Falls – R 1 599 000 – CLICK HERE – House
  8. Wilgeheuwel – R 1 645 000 – CLICK HERE – House
  9. Honeyhill – R 1 700 000 – CLICK HERE – House
  10. Ruimsig – Smallholding – R 4 650 000 – CLICK HERE

To Let:

Our rentals are done through the TPN Rentbook system and all our applications are subject to a full credit approval process, employment verification and affordability screening. All of our properties are currently occupied but we get new stock in on a monthly basis. If you are not happy with way your rental portfolio is managed, we can also take it over.

Here is one 3 bedroom and one 2 bedroom unit we have available from 1 May …

  1. Wilgeheuwel – R 5500pm – CLICK HERE
  2. Wilgeheuwel – R 9 250pm – CLICK HERE

For more details on any of our services, please call, whatsapp, sms, email, tweet, facebook message …. we will get back to you.

Hope you have a great weekend.

M&J  …… http://www.steynrealty.co.za …… @steynrealty

First Impressions

“Don’t judge a book by its cover” ….. when it comes to Real Estate, Sellers can easily lose out on a potential buyer just because the “cover” of their “book” has been neglected.

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Unless a buyer is looking for a “fixer-upper” or maybe something he/she can get for a very good price (below market value) to fix up and then “flip” or use as a long-term rental, FIRST IMPRESSIONS are extremely important when selling property. Together with the aesthetic appeal of the property, price, location and general condition are probably the most important factors that buyers are look at.

FIRST IMPRESSIONS include everything a buyer will see at first glance when viewing a property. Many small things are sometimes overlooked by sellers / homeowners because they see the property every day. It doesn’t matter how big or how small the property is, if the property looks neglected from the outside, buyers WILL judge the book by its cover and assume the same goes for the inside …. this will also alert buyers that there may be other hidden problems / maintenance issues not clearly visible when viewing the property.

Even the photos that agents take for advertising purposes can have an influence and can either be to the sellers’ advantage or detriment. If you are currently selling your property through an agency, do yourself a favour and go have a look at the listing online. Look at the photos and read the description ….. you might be pleasantly surprised or shocked!

Before we sell a car, before we take it to a second-hand dealership to get a valuation or to trade it in on a new car, what do we do …… we take it for a wash or maybe even a full valet. We touch-up little scratch marks and polish the paint. Sometimes we buy new tyres, pray air freshener in the car etc. Why don’t sellers do the same with their properties? It will obviously cost a little more to repaint and to do minor maintenance but dressing up, fixing up and “de-cluttering” your house before putting on the market will definitely help to sell it faster and maybe even at a higher price. Here are a couple of things that we see every day that is a big let-down for property buyers:

  1. Uncut pavements, long grass, gardens with overgrown bushes and flower beds.
  2. Boundary walls falling apart, falling over, loose bricks, cracked / broken walls with large damp sections and paint that is flaking.
  3. Driveways with grass & weeds growing through the paving or cracks in the cement.
  4. Steel / wooden gates, doors & garage doors that are weathered, rotten, rusted, cracked and in need of attention or replacement.
  5. If you recently fixed some cracks on the outer (or inner) walls of your house, make sure you paint with the same colour / shade of paint than the rest of the wall, otherwise its better to paint the whole wall.
  6. Water marks / stains anywhere on a property is extremely negative, even if the geyser burst a year ago and left a little watermark on the ceiling which you forgot to paint, buyers will not believe you and think there is a problem.
  7. Gutters, down-pipes, plumbing pipes, fascia boards in need of repair or painting looks really bad. In sectional title complexes this will make the buyers think that the Body Corporate is in financial trouble or that the complex is not well-managed … a very big negative for buyers.
  8. Old carpets, bad odors, damaged cupboards, wooden floors that are lifting, chipped walls and any cupboard, window or door that doesn’t close properly are big turn-offs.
  9. Pools that are green any time of the year is a sure sign that there are problems.

The general condition of the property can go a long way assist with securing on acceptable offer. Your agent should also be able to assist you in pointing out the main issues that will need attention. Don’t sell yourself short ….. happy selling!