Essential Tips for First time Home Buyers

by Monique Ackerman • 2 MIN • 254 Words

Smart Moves: Unveiling Hidden Costs for First-Time Homebuyers

Moving out for the first time is thrilling, but unforeseen expenses can catch you off guard.
Here are some essential tips to help you navigate the true cost of moving out.

1. Bond Initiation Fee:

• Charged by the bank for bond initiation.
• Upfront payment saves on interest, max R6,037.

2. Legal Fees:

• Involves bond, cancellation, and transfer attorneys.
• Negotiable but averages R15,000 - R55,000 ex VAT.

3. Deeds Office Fee:
• Charged for registering your bond, around R755 - R2,350.

4. Transfer Duty:

• Significant tax to SARS within six months.
• Budget around R50,000 - R366,000.

5. Monthly Bond Admin Fee:

• Small fee, usually under R100.

6. Insurance Premiums:

• Homeowner/structural replacement insurance is extra.
• Costs vary; shop around.

7. Moving Costs:

• Varied costs, plan wisely.

8. Connecting to Utilities:

• Registration fees for water, electricity, and landline.

9. Rates and Levies:

• Provision for 1-2 months' worth of municipal rates and body corporates levy premium.
• Monthly fees based on property value.

10. Security, Maintenance, and Renovations:

• Neighborhood contributions and potential armed response contracts not included.

Top Tips for a Smoother Move:

• Save for a deposit; tighten expenses for 2-3 years.
• Boost credit score before house hunting.
• Rely on trusted estate agents for insights.
• Negotiate on the asking price; consult a bond originator.
• Shop around for insurance and moving services.
• Have a financial backup plan (Plan B) for unforeseen challenges.

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