Costs to consider when purchasing a property

Purchasing a property can be financially daunting however, considering your cost implications beforehand can assist you in planning accordingly to minimize unnecessary stress ensuring that the process remains an exciting one. Below are guidelines to better understand these costs.

• Purchasing a property involves various costs, these costs include once off costs as well as ongoing costs

• Should you require funding in order to purchase a property, a once off bond initiation fee will be charged by the bank to register the bond and open the bond in your name.

• A once off bond registration fee will be charged by the attorneys who register the bond in your name at the Deeds office.

• Once you have raised a bond on the property you wish to purchase, the transferring attorney who is appointed by the seller will be informed by the bond attorney to request payment of transfer costs, a once off payment, in order to transfer ownership to you. Note that transfer costs only apply to properties with a value of more than R900, 000. Transfer costs can vary and are dependent on the purchase price, conveyancers fees, VAT and the transfer duty payable to SARS.

• Depending on the amount of furniture you own you may need to consider hiring a moving company in order to assist you with transporting your belongings to your new home. This cost can vary depending on which companies service you choose to make use of. However, some companies offer a discount if you move during the week and in the middle of the month as the demand for a moving company is lower at these times.

• A new home often requires general repairs and maintenance when moving in, a few of these repairs may be essential and others may depend on your budget. These unforeseen expenses can be an ongoing cost so it is important to ensure that a budget is set aside or that a savings plan is in order. *household maintenance items

• Should you purchase a freestanding home you will be required to register for water and electricity connection. These utility costs can also include telephone and internet lines if applicable. Note that these costs are dependent on the area you purchase in.

• In addition to purchasing a freestanding property you will be required to pay for rates and taxes. The cost of rates will remain the same every month and are charged on sewerage usage and garbage removal. Taxes are payable every month and are calculated according to the value of your property.

• If you have purchased a sectional title property you will be required to pay levies. These are set levies that are payable every month to ensure that general upkeep of your property is carried out.

• Should you feel that the security of your property should be updated you will be required to update your own security accordingly. This is considered an ongoing cost as you will need to budget for the monthly armed response fee.

• It is recommended by your financial institution that you consider having homeowners insurance, an ongoing cost to cover any structural damage of your property. The bank provides a range of affordable options to choose from. This cost can also be included in your bond repayments and excludes cover of the items within you property.