Affordability
- Your Deposit -
Establish the amount that you can put down as a deposit on your bond.

Your 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.

Transfer Costs - Do not forget to provide for the Transfer Duty and Conveyencing Fees that are normally payable by the purchaser. Current Transfer Duties are as follows;

 R0,00 for properties valued below R600 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

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 a good bond originator will really be an asset, speak to your Estate Agent, will also be able to assist you. »

22 Feb 2012

Affordability - Your Deposit - Establish the amount that you can put down as a deposit on your bond.

Your 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.

Transfer Costs - Do not forget to provide for the Transfer Duty and Conveyencing Fees that are normally payable by the purchaser. Current Transfer Duties are as follows;

 R0,00 for properties valued below R600 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

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 a good bond originator will really be an asset, speak to your Estate Agent, will also be able to assist you. ยป

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 centres and other facilities that you would require in the area.