Offer to purchase question

[The Darkness]

Can anyone recommend some clauses to add into an OTP that is favorable to a purchaser? I see that a pre-inspection clause is recommended. Should this be made the seller's responsibility? What else can you recommend.

Yes, put in a clause stating that the seller must provide approved council stamped houseplans. This ensures there are no illegal builds on the property, which will become your problem down the line.

 

[RonSwanson]

Standard Bank offered me prime -2.1 on my bond. First property purchase, so also getting 50% off bond lawyer fees. Feeling pretty good about that deal.

The first R1,000,000 of the property's price is also free of transfer duty for first time buyers, so will also only pay transfer duty on the amount over that.

 

[Neuk_]

Standard Bank offered me prime -2.1 on my bond. First property purchase, so also getting 50% off bond lawyer fees. Feeling pretty good about that deal.

That is excellent, they wouldn't move 0.03 PP to match what ABSA offered when we applied for a bond for our last house, despite me being a customer for over 20 years with a few accounts with them.

 

[crysis]

The first R1,000,000 of the property's price is also free of transfer duty for first time buyers, so will also only pay transfer duty on the amount over that.

Not sure I've seen this quoted any where. As far as I know only properties sold under 1m are free from transfer duty. Can you find an article backing this up?

 

[RonSwanson]

Not sure I've seen this quoted any where. As far as I know only properties sold under 1m are free from transfer duty. Can you find an article backing this up?

Use any of the multitude of loan calculators available.

 

[MidnightZA]

Not sure I've seen this quoted any where. As far as I know only properties sold under 1m are free from transfer duty. Can you find an article backing this up?

Transfer Duty | South African Revenue Service

To see tax rates from 2014/5, see the Archive – Tax Rates webpage.

www.sars.gov.za

 

[crysis]

Transfer Duty | South African Revenue Service

To see tax rates from 2014/5, see the Archive – Tax Rates webpage.

www.sars.gov.za

Doesn't say anything about first time buyers. Only that properties under the value of 1m don't attract transfer duty.

 

[MidnightZA]

Doesn't say anything about first time buyers. Only that properties under the value of 1m don't attract transfer duty.

Why does matter if its a first time buyer? The first 1M is still 0%, or are you hoping that a first time buyer gets 2M free of duty transfer?

 

[crysis]

The first R1,000,000 of the property's price is also free of transfer duty for first time buyers, so will also only pay transfer duty on the amount over that.

Why does matter if its a first time buyer? The first 1M is still 0%, or are you hoping that a first time buyer gets 2M free of duty transfer?

Read Ron's post.

 

[acidrain]

Standard Bank offered me prime -2.1 on my bond. First property purchase, so also getting 50% off bond lawyer fees. Feeling pretty good about that deal.

Yeah, Standard Bank seems to be the only bank giving decent offers. Is your offer inclusive of opening an account with them, unless you already banked with them. If not, check the bank's offer to see if there is one, can get a few more % off

FNB came in second with my application.

 

[6spdmanual]

Gents and dames.

Do banks still give you the option to finance the attorney and transfer fees? Or will this be on the buyer? Any banks you know which still offer this?

 

[RonSwanson]

Transfer Duty | South African Revenue Service

To see tax rates from 2014/5, see the Archive – Tax Rates webpage.

www.sars.gov.za

Doesn't say anything about first time buyers. Only that properties under the value of 1m don't attract transfer duty.

Why does matter if its a first time buyer? The first 1M is still 0%, or are you hoping that a first time buyer gets 2M free of duty transfer?

Read Ron's post.

My apologies, it used to be first time buyers, looks like the rules have changed. It's been a few years since I was a first time buyer (back in 1996 it was the first 100K I think)

 

[Snyper564]

Gents and dames.

Do banks still give you the option to finance the attorney and transfer fees? Or will this be on the buyer? Any banks you know which still offer this?

better to pay that upfront otherwise you may as well double that cost spread over 20 years.

 

[6spdmanual]

better to pay that upfront otherwise you may as well double that cost spread over 20 years.

Fairs.

But is that option provided by anyone?

 

[Snyper564]

Fairs.

But is that option provided by anyone?

I think the 101/102% loans are usually offered by most banks. TBH just take out a small personal loan and settle in the year will likely be cheaper

 

[zerocool2009]

Doesn't say anything about first time buyers. Only that properties under the value of 1m don't attract transfer duty.

Its nothing related to first time buyers! Its a SARS rule, and it gets evaluated yearly

I laugh, saw a property with a huge sign : Zero transfer duty! And SAVE!!!

Thats appealing if you dont know by default under R1 000 000, transfer duty is ZERO

 

[zerocool2009]

Gents and dames.

Do banks still give you the option to finance the attorney and transfer fees? Or will this be on the buyer? Any banks you know which still offer this?

My rule by heart: pay all fees cash, even initiation fees, and max 10% deposit!

I only break that rule in the last 5 years buying properties cash!

 

[zerocool2009]

Fairs.

But is that option provided by anyone?

I think its more about if you qualify. You can apply for R1 500 000 and only buy a property of R1 000 000, and use the extra R500 000 for other debt. So many ways to be smart.

A bond is the cheapest money you will ever borrow

 

[6spdmanual]

I think its more about if you qualify. You can apply for R1 500 000 and only buy a property of R1 000 000, and use the extra R500 000 for other debt. So many ways to be smart.

A bond is the cheapest money you will ever borrow

Bro. Is this possible? How?

The banks needs to know how much the property is worth right? The one I like is worth R1.2 million. Why would the bank then loan me - for Instance - R1.7 million?

I’m assuming that’s what you mean by this?

 

[zerocool2009]

Bro. Is this possible? How?

The banks needs to know how much the property is worth right? The one I like is worth R1.2 million. Why would the bank then loan me - for Instance - R1.7 million?

I’m assuming that’s what you mean by this?

Yes! You can say you are making R500 000 in improvements. The debt was a bad example, but the bank would look at your offer, your plans, register R1 500 000, pay out R1 000 000 and give the R500 000 when needed over as your building upgrades progress!

All I am saying, you questioned the extra 2% or 5% in fees, all that I am saying, think bigger.