It is important for buyers to keep the home buying costs in mind when hunting for their dream home.
Those expenses and costs associated with property buying that are less apparent, can quickly become a problem for any buyer who did not budget for those expenses.
Legal Costs Of Buying
There are two very important legal costs that home buyers have to keep in mind: mortgage bond registration costs and transfer costs.
Mortgage Bond Registration Costs
Buyers who plan on purchasing a property with the help of a home loan, has to keep the cost of registering a mortgage bond in mind. Mortgage bond registration costs consist mostly of the attorney fees for the conveyancer attending to the registration of the mortgage bond. The amount of these legal fees depend on the size of the home loan. The more a buyer loans, the higher the mortgage bond registration costs.
Transfer Costs
The cost involved in transferring the property from the seller to the buyer's name is largely made up of a big chunk of tax (transfer duty) and some attorney fees.
The transfer duty payable upon transfer of a property, depends on the purchase price of the property, or the market value of the property if the property was not acquired by way of a bona fide, arm's-length sale. The choice of ownership of the property will also considerably influence the transfer duty that becomes payable upon transfer.
The transfer costs vary according to the size of the purchase price agreed upon in the contract of sale. The higher the purchase price, the higher the transfer costs.
Moving Costs
Furniture removal and other moving costs can amount to a considerable expense. Home buyers should not forget to keep the moving costs in mind when draw up their budget.
Service Connection Costs
There are connection fees that will have to be paid for the connection of water, electricity and telephone services in the new home.
These connection fees are small once-off expenses, but they add up to hundreds of rands. Be prepared.
Pepair And Renovation Costs
Property owners should make provision for home maintenance costs as well. Any home needs an occasional touch-up, but buyers also have to provide for large repairs and renovations that may be needed.
Monthly Costs
Except for the monthly mortgage bond repayments, buyers have to budget for the other monthly costs of owning a home.
Rates & taxes, water, electicity and sanitation expenses are costs that many tenants don't have to contend with. These monthly payments to the municipality should be included in a property buyer's monthly financial planning.
Home Buying Costs
There are much more than the purchase price to keep in mind when calculating home buying costs. Think through the whole process and make a list of all the costs involved in buying.
No buyer likes to be cought unaware!
