The fees and transfer duty that Lerato will be saving on this purchase is R48 750 . This is more than 4 % of the purchase price . If she wants to compare this to buying an existing property , Lerato needs to compare this to a property of about R 1.151m to have a similar cost for the transaction . In addition , if she had to finance the property with a 90 % home loan , she will need R43 875 ( or 36 %) less cash to purchase the off plan property .
The following graph shows how the value of this saving changes with the sale price .
Example 2 : A buyer has limited cash for the deposit and necessary fees
Michael would like to buy a cluster home in Northriding for him and his family . They are setting their dreams and lifestyle expectations on modern homes of about R2.0m . Michael and his wife qualify for a home loan of up to R1.8m for up to 90 % of the value of their chosen home . They saved R200 000 in cash to pay for a deposit and fees . The family would like to buy their own home as soon as possible . What are their options taking into account that they have limited cash available for the 10 % deposit , fees and transfer duty ?
www . reimag . co . za FEBRUARY 2017 SA Real Estate Investor 17