THE COST OF BUYING A HOUSE
Zami wrote to City Press as he was concerned he had been overcharged for the transfer costs of his property.
When buying property it is important to understand the significant costs involved for both the transfer of the property into your name as well as the costs of bond registration.
In this case, a property purchased for R500 000 with a bond of R500 000 would have transaction fees of R20 243 – around 4% of the purchase price.
Note that, if the property is worth more than R900 000, then transfer duty would also be applicable.
The amount of transfer duty payable increases with the value of the property, starting at 3% of the value of the property and going up to 13% for property worth more than R10 million.