THE COST OF BUYING A HOUSE

CityPress - - Business -

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.

Con­veyancer fee

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