Can I afford it, and what will it cost?

This is possibly the most important question to ask before you purchase your home. There are many hidden costs involved in purchasing a property- as the saying goes, failing to plan is planning to fail! If you do not have sufficient funds to pay for all the costs of transfer of the property, including unexpected costs, you could find yourself in breach of the contract and may be liable to the seller for damages for breach of contract, as well as for the potential cancellation of the contract.

The following are usual costs to expect when purchasing a home:

The purchase price
The conveyancing fees for transfer of the property
The bond registration fees (note- this is in addition to the conveyancing fees, and the bond registration is usually performed by a separate firm of attorneys)
Transfer duty or Value Added Tax levied on the purchase price (where applicable)
Levy clearance fees/ home owners association clearance fees (if applicable)
Occupational rent (if applicable)
Moving costs

It is important to note that conveyancing fees are usually paid for by the purchaser. Many purchasers in the past have failed to take this into account, much to their detriment, despite having signed a sale agreement which specified the purchaser’s responsibility in this regard. Prospective purchasers are able to use our cost calculator to obtain an estimate as to likely conveyancing charges. Try our cost calculator here.

If you intend financing your property through a mortgage bond, you need to bear in mind that each bank has its own specific lending criteria before granting a mortgage bond. It is possible that you may not obtain the full home loan financing for which you applied, which is why it is best to pre-calculate your monthly bond instalments, to ensure that you can afford the repayments (Try it here).