You are interested in buying a property. Now What?

You are interested in buying a property. Now What?

Here are some steps to help guide you through the process:

What are you looking for?

Start by making a list of what your property requirements are, and include these in your search criteria for your online searches.

  1. Affordability, do you know what you can pay each month?
  2. Your preferred suburbs and surrounds, include schools and amenities
  3. How many bedrooms or bathrooms do you require?
  4. Is a garage important?
  5. Do you mind renovating?
  6. Do you entertain? 
  7. Do you have pets and need a substantial garden?
What types of properties are there?

Each property falls into a different legal description, this is important to note as there could be rules surrounding a specific type of property.

  • Freehold/ full title – This is a free standing property, it isn’t attached to another property and has land surrounding it.
  • Sectional Title –  These included apartment blocks, townhouses, simplexes and duplexes. Semi-detaached properties..
  • Share-block – An entire building of apartments is owned by one entity, each unit is allocated a number of shares in this company. This is often needed to be funded with cash or other resources, lenders are often hesitant to loan under these conditions.
What are the costs of owning a property?

Don’t forget to include the following in your monthly budget or you may find yourself short of pocket

  • Municipal rates
  • Levies (Some security levies for street enclosures, generally part of an estate or complex)
  • Electricity and water
  • Homeowners insurance
  • Repairs/maintenance
What are the purchase costs of buying a property?
  • Transfer duty – The amount paid to SARS when property ownership changes hands..
  • Transfer fees – The attorney fee to ensure the property is officially registered in your name.
  • Bond registration fee – The amount can vary, and it is the fee your attorney receives for registering your bond.
  • Additional legal fees – FICA fees, postage costs and electronic instruction bills may form part of these fees from your attorney.