Looking For a Property For Sale? Hidden Costs To Look Out For

Looking for a property for sale? Understand these hidden costs first

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Buying a home is one of the biggest financial decisions one can make – especially when it comes to the luxury market. When seeking a new property for sale, it can also be easy to underestimate your budget. This is because there are plenty of hidden costs involved in buying and owning a home – and first-time buyers are not always aware of what these costs entail. Before you even begin budgeting for that property for sale you have your eye on, it is wisest to get a sense of what future expenses you may face. Along with buying the house, there are legal and administrative fees for which one must plan. Having the funds already in place to land the residence of your dreams makes the entire process easier and more efficient. If you are currently shopping for a new home, then below are some key financial considerations.

 

The cost of legal and administrative fees

 

While buying their ideal property for sale, many first-time buyers are left stunned and dismayed at the administrative fees they need to shell out. When transferring ownership of a property, conveyancing attorneys (bond attorneys and transfer attorneys) must be paid by the buyer. A bond attorney is appointed by the buyer’s bank to register the new home’s bond and prepare the legal documentation. The transfer attorney is appointed by the seller of the home, and they ensure all legal proceedings are followed correctly and that the sale is lodged with the Deeds Office. Conveyancing fees are sometimes negotiable but are usually charged in relation to the value of the property.

 

One must also keep the transfer duty tax in mind, which is a fee paid to the South African Revenue Service (SARS). This amount must be paid within six months of purchasing the new home for sale.

 

Homeowner’s insurance

 

Once you land the sale and own the property, your bank will require you to apply for homeowner’s insurance. This is building insurance that covers the infrastructure against damage caused by things like natural disasters, fire, or theft. This insurance, unfortunately, does not cover possessions within the home, but an additional policy can be taken out to extend your coverage to your belongings and assets.

 

Rates and taxes

 

For freehold properties that offer buyers full title ownership, certain rates and levies need to be paid. These fees vary, depending upon the value of the home and the area in which it is located. They cover things like weekly refuse removal and sewerage use. Depending on where you stay, you may have to contribute towards a homeowner’s association too. Those who have invested in a sectional title for sale will have to pay a levy as set out by the body corporate.

 

Covering your utilities

 

Freehold homeowners will also need to register the home’s connection to electricity, water, internet, and telephone lines (depending on their household needs). Monthly payments must be made towards these services once they are connected.

 

Moving expenses

 

Relocating is a major upheaval and the costs involved can be astronomical if you have a lot of furniture and belongings. To keep costs low, it is helpful to try and move everything yourself, but this might be a demanding endeavour that adds to the stress of leaving your old home.

 

Refurbishments and renovations

 

Apart from potentially needing new furniture and appliances, you may have to update or repair a lot of your new home’s existing infrastructure. Remodelling projects come with a hefty price tag, and even general repairs can cost a pretty penny. These, fortunately, can usually be tackled over time.

 

If you’re a first-time buyer looking for a gorgeous home in the luxury market, then let us at Fine & Country South Africa help you find a property for sale that suits both your budget and your taste. For more information, click here.

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MULTI-AWARD WINNING


Our consistent efforts to offer innovative marketing combined with a high level of service have been recognised by the industry for an astounding fifth year in a row, winning Best International Real Estate Agency Marketing at the International Residential Property Awards.

INDEPENDENT EXPERTISE


Every Fine & Country agent is a highly proficient and professional independent estate agent, operating to strict codes of conduct and dedicated to you. They will assist, advise and inform you through each stage of the property transaction.

GLOBAL EXPOSURE


With offices in over 300 locations worldwide we combine the widespread exposure of the international marketplace with national marketing campaigns and local expertise and knowledge of carefully selected independent property professionals.

UNIQUE MARKETING APPROACH


People buy as much into lifestyle of a property and its location as they do the bricks and mortar. We utilize sophisticated, intelligent and creative marketing that provides the type of information buyers would never normally see with other agents.

PARK LANE OFFICE


Access the lucrative London and international investor market from our prestigious Park Lane showrooms at 121 Park Lane, Mayfair. Our showrooms in London are amongst the very best placed in Europe, attracting clients from all over the world.

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Connecting offices on over 300 locations worldwide, our referral system combines local knowledge and expertise with an international network to find the right buyer for you wherever they are, at the same time as finding you your ideal next move

Our International Websites

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SOCIAL MEDIA

We interact with customers on the main social media channels including Facebook, Twitter, YouTube, LinkedIn and Pinterest, giving each property maximum online exposure.

 

Media Centre


MEDIA CENTRE Our internal Media Centre is a team of experienced press relations managers and copy writers dedicated to liaising with newspapers, magazines and other media outlets to gain extensive coverage for our properties in national and local media.

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We have partnered with IFX, one of the world’s leading foreign exchange specialists to provide private and tailored currency services for all of our clients buying and selling luxury property around the world. Find out how we can help »