Buying a home is one of the biggest financial decisions to make. But many of us focus only of the large number looming over us -- the asking price of the property. Often the smaller, less obvious costs that come with buying a home don’t get enough attention, and when the time comes to buy the stress of all the other associated costs can hit us.
Bond registration
In order to get your monthly installments up and running and the transfer of ownership into your name, you need to factor in the bond registration process and transfer costs. These costs vary from buyer to buyer, as they are based on the total amount given to you for your home loan. For example, on a bond of R1 million, the bond registration cost will be around R26,793 and the transfer costs around R23,808. These fees are in addition to the cost of the home, and must be factored in when saving up for your dream home.
Insurance
Along with the bond, your bank will require you to take out home insurance that covers any structural damage to your property due to fire or a natural disaster. Life insurance is also required for those who have bought the property with someone else, to ensure the bond can be covered in the event one of the owners passes away. These costs vary according to the insurance provider you choose and property related factor such as size.
According to Private Property’s article on the additional costs involved, buyers should expect to pay between 8% and 10% of the total property price on any other fees associated with buying a house. Being such a big investment, ensure you have the capital available for all the other costs that will come your way.
