Q
Can FLISP be used to cover all legal costs when purchasing a property , or does it only apply to transfer costs ?
Usually when a property is purchased from a property developer / new development purchase price can include all transfer and bond registration fees in the purchase price . When a 2nd hand property is purchased , the purchaser must pay separately for the transfer and / or bond registration costs .
FLISP subsidy can only be used by a first-time buyer in the Western Cape to pay for legal fees such as transfer and / or bond registration costs . In all other Provinces , the subsidy cannot be used for such costs and fees , unless the property is purchased from a property developer / development and the purchase price includes all transfer and bond registration fees already included in the purchase price .
A
PROPERTY ADVICE
MEYER DE WAAL MDW Attorneys
Q
What do you wish you knew before purchasing your first home ?
Buying a home is exciting and daunting in equal measures . Prior to buying your first property you need to make multiple deliberations on many things . You need to be aware of all the costs before you submit an offer to purchase . You need to negotiate and be patient , it may be tempting to take the first bank offer , but rather see if you can secure a better interest rate . Additionaly , having a deposit on your bond will save you in interest over the long-term and will also make it easier to qualify for a home loan .
A
CARL COETZEE BetterBond
Top up your bond - pay extra towards your bond if you can . While the current low interest rate of 7 % will considerably reduce your bond repayment , paying even R100 extra each month will make a significant dent in your interest and will also shorten the bond repayment period .
Plan ( and budget ) for regular repairs - Be mindful that as a homeowner , you will be responsible for maintenance and repairs , and that this will come at a cost . Consider this when doing your long-term budget planning .
Buy , don ’ t rent - If you budget correctly , your finances are in order and you have bought a home that you can afford , home ownership can in fact be cheaper than renting a property of a similar value - and nothing beats the peace of mind that comes with owning your own home .
Make sure that your decision to buy a home is an informed one . With the prime lending rate at 7 %, the lowest it has been in five decades , it can be tempting to rush into a purchase . Make sure you can comfortably afford your dream home before you submit your offer to purchase .
SA Real Estate Investor Magazine APRIL 2021 5