Real Estate Investor December 2022/January 2023 | Page 88

Tips for maximising deposit returns

Homeowners wanting to maximise the earnings on their deposit should consider the costs involved in managing it – especially when the deposit is paid to a transferring attorney .
Homebuyers are legally mandated to pay 5 % of the total interest accrued to the Legal Practitioners Fidelity Fund and are also required to pay for the ‘ hidden ’ administrative costs of a deposit such as the price of a Bank Guarantee and getting FICA ’ d . The buyers has zero transparency of their money as their deposit is held in the seller ’ s conveyancer ’ s name .

“ Put your earned interest aside to add to your monthly repayments once the transfer is complete – this will help you to pay off your bond sooner .”

88 DECEMBER 2022 / JANUARY 2023 SA Real Estate Investor Magazine