Tips to Buying a Property in South Africa

By: Mark Bellinger

Tips to Buying a Property in South Africa - Read this advice before you Buy a Property or House
[http://www.online-property.co.za/page--16.html]

Before buying a house in South Africa you would be well advised to read these tips on successfully buying a property and avoiding the property pitfalls.

Guidelines to Buying a Home or Property in South Africa

Buying your house or property will probably be the biggest purchase you will make during your lifetime and it is necessary to avoid the pitfalls when making a property purchase..

You will agree therefore, that it is important to make sure that all things are considered to ensure that your property purchase is secure in all of the following aspects...



    Affordability

  • Deposit

    Establish the amount that you can put down as a deposit on your bond



  • Bond Amount

    Establish the amount of the monthly repayment you can afford.

    You can do this by totalling your monthly income (joint income if you are married) less your expenses.



    The banks will normally grant a maximum bond where the repayment is no more than 25% of your gross monthly salary which should not be more than the amount you calculated above, otherwise you may be overcommitted.

    It is worth noting that interest rates can vary from bank to bank so you would be wise to ensure you get the best deal and interest rate for your bond by applying for a free, no obligation home loan quote here ?



  • Transfer Costs

    Do not forget to provide for the Transfer Duty and Conveyancing Fees that are normally payable by the purchaser.

    Current Transfer Duties are as follows;



    • R0,00 for properties valued below R500 000,00


    • R25 000,00 for properties below R1 000 000,00


    • R25 000,00 + 8% of the value over R1m for properties over R1 000 000,00







    Conveyancing fees vary but can easily be in the vicinity of R20 000,00

    One way to avoid paying Transfer Duties and Conveyancing Fees is to buy a property off plan from a developer.

    Developers normally waive the legal costs and if the property is new & has not been previously registered, there won't be transfer duties to pay



    Before paying duties it's worthwhile noting that some bond originators & finance house may pay some of these fees for you if you register your bond with them

  • Bond Approval

    Not only has banking has changed dramatically in the last few years, the new credit act has made it more difficult to get bonds approved so get good advice and assistance with regard to home loans and bond finance ?






    Where to Buy?

  • Location, Location, Location

    Everyone knows that the most important point when it comes to buying property is the area where it is located.

    What this means essentially is that it is more advisable to downscale on the size or quality of house in favour of the area it is

    located in.



  • Security

    Once you have identified the area you want to buy in, consult with the local residents and police station regarding the crime rate

    in the area.

    Look out for open tracts of land and developments going on in the neighbourhood which could promote incidents of criminal activity.



  • Facilities

    Also take note of the presence (or lack thereof) of schools, libraries, shopping centers and other facilities that you would

    require in the area.







    How to Source a Suitable Property?

  • Estate Agents

    A traditional method of sourcing properties is registering your preferences with as many agents in the area and hope that they are

    diligent, patient and committed enough to find you the right home.



  • Online Property Search

    One way of accessing a vast choice of properties from the comfort of your home and at your leisure is on the internet.





So to maximise your chances of securing the best quality home in the best area and at the lowest price you need to have timeous information regarding property availability in your chosen areas.



To this end, you can register your profile (for free) with Private Property who will keep you abreast with the property market and prices in any neighbourhood in South Africa and Namibia [http://www.online-property.co.za/page--16.html]

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