PROPERTY FINANCE
7 . Moving costs
Depending on whether you use a minivan or a pantechnicon , you could be charged anywhere from a few thousand rands up to tens of thousands . It is always cheaper to move mid-month , so try to arrange that .
8 . Connecting to utilities
Owners of freehold property will need to register for water , electricity and a landline . You ’ re looking at a few thousand rands . Don ’ t forget about the cost of an internet connection and fibre .
9 . Rates and levies
The liability for a purchaser could entail making provision for 1 – 2 months ’ worth of the municipal rates & the body corporates levy premium , payable in advance – subsequent to the registration date . You will pay monthly rates for rubbish collection and sewerage , and taxes based on the value of your home .
Shortly after registration ( mostly in freeholds ), a deposit is charged to open a new water and / or electricity account at the council ’ s office – approximately R 350 water deposit and R 450 electricity deposit . Owners of sectional title property will pay a set levy every month .
10 . Security , maintenance and renovations
Some suburbs have security in place , which you will need to contribute to . And you will need to decide whether to contract with an armed response company . If your home doesn ’ t have a good system in place , this is a good time to ask the security company about a package deal for an upgrade .
Use the BOND CALCULATOR to determine your monthly home loan repayments , how much you can afford to borrow , and what deposit amount is required .
82 DECEMBER 2022 / JANUARY 2023 SA Real Estate Investor Magazine