The purchase price of a house is only a part of the costs involved in buying a home, although it is understandably the largest chunk, it is not the only cost or fee involved.

There are other costs involved in the process of the purchase and transfer transaction which are better dealt with if known in advance.

Purchasing a property is quite an extensive and involved process; the best preparation should preferably begin with knowing the attendant costs so that one is fully prepared.

Costs involved in Buying a House

The costs involved in a property are mainly the following;

1. Purchase price
2. Property valuation
3. Bond initiation
4. Bond registration
5. Legal and transfer fees
6. Transfer duty if home is pre-owned
7. VAT if the property is newly built

Added to the above, once the transfer is complete the new home owner is now responsible for such costs as:

• Property rates,
• Maintenance,
• Insurance,
• Security,
• Any applicable levies
• as well as Municipal charges.

These will be over and above the debt repayment on the home loan account at the bank.

Such fees as transfer and legal costs can be quite substantial as they are dependent on the value of the property. The crippling factor in this is that these must be paid from the pocket of the buyer, unless a bond has been secured with a bank that offers a deal including provision for transfer costs.

Major banks have home loan credit facilities that cater for these transfer costs especially for first time buyers.

Phoenix Group - Specialist Bond Originators South Africa

It is advisable for home buyers to seek the guidance of specialists such as Bond Originators in property buying so as to be fully prepared and not be caught by surprise.

Our able advisors negotiate the best home loan terms that suit the requirements of our clients and therefore we are able to secure the best home loan deals for the clients that we assist.

This can be with regards to payment terms, interest structure and rates, choosing the most favourable offers from a wide range, and securing the loan amount that is adequate and suitable for the transaction.

Consulting with our bond originators also helps to avoid unnecessary delays which could have been avoided had one known the cost implications and prepared for them beforehand.

The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter. One should not act or refrain from acting on the basis of any content included in this site without seeking legal or other professional advice. The contents of this site contain general information and may not reflect current legal developments or address one’s peculiar situation. We disclaim all liability for actions one may take or fail to take based on any content on this site.