An amount for items like postage and FICA will be added .
Expect to pay around R 13 000.00 ex VAT for a R 500 000 property and R 57 000 for a R 5 000 000 million property .
It is important to note that the examples above do not account for the related disbursements , for example , postage and petties , FICA identification fees , and deeds office searches .
3 . Deeds Office Fee
The Deeds Office will charge you a fee for registering your bond over the title deed . This fee may be paid by your transferring attorney , who will then bill you for it , and you can expect to pay around R 755 for properties of R500,000 to R 2350 and up for purchases of R 5 million .
4 . Transfer duty
This tax is normally the largest cost you will need to pay over and above the purchase price of a property . It must be paid to
SARS within six months of the property transfer . ( If a seller is VAT registered , you will pay VAT instead of transfer duty . This is often the case when buying a property in a new development .) Budget for around R50,000 on a R2 million property and R366,000 for a R5 million property . Find the 2022 / 23 SARS Transfer Duty tables here .
5 . Monthly bond administration fee
Your financial institution will charge a small monthly admin fee , usually under R100 .
6 . Insurance premiums
To get a bond , you will probably be required to take out homeowner insurance / structural replacement insurance . This is on top of your normal household insurance . Costs vary and you don ’ t have to take the product recommended by your financial institution , so shop around . Depending on your credit scoring and or risk assessment , life cover could be a condition of your mortgage loan agreement .
SA Real Estate Investor Magazine DECEMBER 2022 / JANUARY 2023 81