Buying our first house

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blue-eye-boy

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So, just got the word the other day that we must move out of the house we're renting by the start of October. So after looking around for some other place, we started to think of buying. So, what I've found out from some property agents, is I can budged on more or less R1000 per R 100 000 for installment.

I will get a 100% loan, I know because Standard bank gave my dad one last year, and we're partners in the same business. And if he could get it, will too, cause he is much more of a health risk than myself.

But now what bothers me, is the transfer costs and duties. My dad totaled at R40 000. Is that the going rate? And isn't there a way to include that in the loan?

And lastly, is there a way to ensure I dont pay too much for a house? Like the going price for a certain area is R1000 000, and I pay like R 900 000 for a house I must spend more than R100 000 on to get it nice. Hope you understand what I'm trying to explain...
 
Transfer costs depend on the price of the property, and as far as I know there is no longer away of getting the transfer costs into the loan. Also if it's anything like JHB look at 6 to 7 months for your rates and taxes to get registered.
 
Banks do not finance your costs. They only finance the value of the house. Just like they do not finance extras on a car. If you buy a house for less than a certain amount ( think it is R500 000)
Transfer costs is tax. Money you pay SARS. And on top of that atourneys fees. There is a scale that the agent should give you.

Remember you will pay the municipality for switching fees.
Ours were a total of R34 000.
 
Bond amounts up to R600 000 there are no transfer duty costs.
On a property of say R500k-R600k you are looking at around R25k transfer and bond costs.
If you are putting the property into a company's name. Then the costs will be much higher.

Thinking that because your father received a 100% bond does not mean that you would remotely receive a 100% bond.
There are a number of factors that would determine whether your will receive a 100%. And that is slim.
to minimizes your monthly costs. Have a decent deposit.

If this property is in Cosmos city. your got yourself a 100% bond.

you are better off having a decent deposit. this will ensure your hill have less to pay back per month.
 
Well I'll try to get the transfer costs in the bond, and I mean I am a first time buyer, so you never know.
 
Not a chance in hell does the fact that your father got 100% mean you will.
 
transfer duty has gone down alot since March

0 -600 000 =R0 Transfer costs.

600 - 1000 000 = 3% if im not mistaken

After that its 5%.
 
Smurfatefrog said:
I think they can finance bond & transfer costs of 1st time home buyers
Click to expand...

Nope they don't do that anymore, there are special circumstances that STD bank will give a 110% bond to, and the OP doesn't match those already seeing as the property is over R300k ;-)
 
Here's my reason I say that because my dad got a 100% loan I will too:
We're partners in the business. Our Standardbank account manager do want our business, she try very hard to keep us as clients, because we're a solid business, there's a lot of money going through them each month. My dad, will at most live for say 10 years, if that long, because he's got fairly serious health problems, and standardbank knows about it. He got a 100 % loan for a term of 30 years, The account manager pushed that through, because she knows that it is as easy as 123 and we take our business to another bank. Now I, as I said am a partner in the same business, 32 years old, no big health risks, still have many years to live. I also have a very good credit record, and also my share in the business behind me. So I am also in the position to push a 100 % bond through.
 
Do you have money for a 10% deposit and transfer duties?

Apparently it helps with getting a 100% loan if you can pay 10% deposit.
 
I hate to burst your bubble, but if you think your business account manager has any sway over the homeloans division, you're sorely mistaken.

Your dad might have got a 100% bond, but that does not mean you will.. even if you threaten to move your business accounts elsewhere (which is more of a schlep than you realise)
 
ToxicBunny said:
I hate to burst your bubble, but if you think your business account manager has any sway over the homeloans division, you're sorely mistaken.

Your dad might have got a 100% bond, but that does not mean you will.. even if you threaten to move your business accounts elsewhere (which is more of a schlep than you realise)
Click to expand...
Well tell me then, why when my dad threatened, she phoned around and she managed to organize that my dad got fro 90 % loan to 100 %. So sorry to burst your bubble, but they have leverage.
 
So you seem to know it all anyway jacqvt, why bother asking us?
 
I'm specifically talking about your vehicle comment though ;)

They cover extras on a vehicle
 
Why do you want to buy property in this country anyway? Malenema is just going to proclaim it as his when he comes to power. Don't think he won't.

People who break their asses to pay off homeloans every month for like 20 years are not thinking right. Property ownership is seriously fraught with pitfalls and huge risks. Just paying back the bond is only the beginning. Maintenance and tax is a major headache.

I love nothing more than calling up my landlord's agent and telling them that the roof is leaking, or the garage automation is stuffed. Fix it please. The fact that I am only paying about 50% of what I would be paying if my name was on the title deed pleases me even more.

My housing needs in 5 years time when my kids are grown up and out of my hair will be very different to what they are now. I'll maybe think of buying a property then. But definitely not in SA.
 
I just purchaed my first place. I'm with FNB and Standard bank offered me a 100% loan over 30 years BUT the interest rate was 9.95%. Whereas FNB offered me 90% @ 8.4% over 20 years. Needless to say, I took the FNB offer. The capital amount with Standard Bank was almost 3x more than FNB. My place cost 750k (market value 900k) and my transfer and bond costs came to a total of 35k.
My advice is, rent for a while and save up for that 10% deposit plus transfer and bond costs. It will save you a lot of money in the long run.

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