Purchasing a home in South Africa is a significant and potentially complex process. Potential buyers should be mindful of various factors, including legal requirements, financial obligations, and the state of their potential investment.
One critical consideration is the Property Condition Report. The report is a detailed account of the state of the property, including any structural issues or needed repairs. The seller completes this document, and it is an essential component of the purchase process. It can influence the price negotiations and helps to avoid unexpected complications or costs after the transaction.
Moreover, potential buyers should be aware that the purchase price is not the only financial consideration. There are additional costs. For instance:
Transfer Duty: This is the tax levied on the value of the property above R1,100,000, which needs to be settled before the property can be transferred.
Conveyancing Fees: The transfer process involves different legal aspects, and you will need to engage the services of an attorney.
Bond Registration Costs: If you are taking out a mortgage to finance the purchase, your bank will appoint a conveyancer to register the bond.
Home – and life insurance: This is a requirement by banks in case you are borrowing a home loan, and it’s an additional cost to consider.
You will find valuable information on transfer and bond registration costs here:
All these costs should be taken into consideration and planned for, to avoid any nasty surprises in the home buying journey.