The second option for managing your deposit – paying it over to an estate agent – does not include the transferring attorney ’ s requirement to pay over 5 % of the total interest . But many estate agents no longer offer this service following the change to the Property Practitioners Act earlier this year .
Buyers Trust is a third-party option that looks to maximise deposit returns by including all administrative costs in its minimal admin fee , which is 1 % of interest accrued . Opening the account in the buyer ’ s name gives the buyer more transparency over their deposit investment until the transfer process is complete .
Buyers Trust is designed to reward fiscally savvy homebuyers for their decision to put down a deposit , as this decision demonstrates discipline and long-term thinking . We encourage buyers to put these interest earnings to good use by offsetting them against recovering some transfer costs or they can
be recycled back by paying it into paying off a home loan .
Use the BOND CALCULATOR to determine your monthly home loan repayments , how much you can afford to borrow , and what deposit amount is required .
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Jackie Smith Head of Buyers Trust ( a subsidiary of Ooba Group )
SA Real Estate Investor Magazine DECEMBER 2022 / JANUARY 2023 89