Cost of buying a home

Costs to make provision for are:

Transfer Fees: These are fees charged by the conveyancing attorneys and includes 14% VAT (Value Added Tax)

Bond Registration Fee: A charge by the bond attorney as nominated by the Bank and attracts 14% VAT.

Transfer Duty: A once off property tax payable to the Receiver of Revenue.

Valuation Fee: All financial institutions charge a valuation fee which attracts 14% VAT.

Share of Rates: The buyer is liable for rates from the date of transfer or occupation/possession depending on the sales agreement.

Stamp Duty: A charge by the Receiver of Revenue for stamps used on the bond deeds.

Posts and Petties: Charges made by the conveyancing and bond attorneys which also attracts 14% VAT.

Insurance: Comprehensive Insurance covers all permanent improvements on the stand and the bond value is insured on your life. Sufficient property coverage is your duty.

Interim Interest: Interest due from the date of registration to the end of the month before the first payment on the bond. Normally capitalised and redeemed over 20 years.

Electricity/Water Deposits: These items can be costly especially if the cost of telephone installation is also included. Rates paid monthly can be added to the water/lights bill on request.