Transfer Duty (2017 Budget)

Mr. Pravin Gordhan has today announced that the Transfer Duty Tax Threshold for not paying any Transfer Duty Tax on the purchase of a property has been raised from R 750 000 to R 900 000 in the new 2017/2018 financial budget. #Budget2017

On current calculations (prior to the above change), buyers buying for R 900 000 for a property will pay costs as follows: Estimated amounts.

Property Transfer Costs:
Attorney fees: R 16 758.00
Transfer Duty: R 4 500.00 (to fall away in the 2017 budget)
Post, petties, FICA and other fees: R 1 200.00
Total Transfer Costs: R 22 458.00

Take into account that depending on the size of the bond, there are also bond registration fees payable as follows: Calculated on a 100% bond of R 900 000

Bond Registration Costs
Attorney Fees: R 16 758.00
Bank initiation fee: R 5 985.00
Post, petties, FICA and other fees: R 1 200.00
Total Bond Registration Costs: R 23 943.00

Total Costs on the purchase of a R 900 000 property with a 100% bond = R 46 401.00 (R 41 901.00 in the 2017 budget)

 

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