Costs when buying a Property

Q: Except for the bond repayment, insurance etc, what will it cost me to buy a property.

A: When buying a property, that property and the bond on the property ( there is a bond) needs to be registered. The registration (Property Transfer) is a legal process, done by an Attorney (Conveyancer) at a Legal Firm and that costs money. The two Registrations can be done by the same Firm but because most banks appoint their own Attorneys for the Bond it is more often than not two separate Firms.  Attorney Firms have clear guidelines as to the amounts they may charge for these Transfers. The price of the Property as well as the Bond amount play a big role.

For example, a R 1 000 000 property with a bond of R 900 000 will generate costs as follows:

1. Property Transfer = +/- R 28 800 of which +/- R 13 000 (Excl. VAT) goes to the Attorney Firm,
R 12 000 goes to SARS as Transfer Duty (only payable on transactions higher than R 600 000).

2. Bond Registration = +/- R 16 500 (maximum of R 5000 initiation fee included)
of which +/- R 8 600 (Excl. VAT) goes to the Attorney Firm.

So to Register this transaction you will need +/- R 45 300
including your deposit of 10% (R 100 000) you are looking at close to R 150 000.00

The above costs are not financed by the banks any more except for some cases where staff get special deals and can sometimes be financed by personal loans depending on the amount.

For more details and a comprehensive Cost Calculator click on the link below.


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