Posted by: Carol Reynolds | 2014/10/11 10:19
There are costs involved in purchasing property. You will need to pay transfer duty which is a property tax payable to Sars, and you will need to pay transfer costs which are the fees payable to the conveyancing attorney who manages the transfer process for you. In addition, if you are registering a bond over the property you will be liable for bond registration costs. Transfer duty amounts to R12 000 on a purchase price of R1 million, and then it increases as a percentage of the purchase price thereafter. Transfer fees on R1 million are around R17 000, so in total for a property that costs R1 million, you will pay R29672.
Bond registration costs are R 13659 on a bond of R1 million. All costs are payable prior to transfer, so you should include these costs in your budget.
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