Property Advice

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news24

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Hi Guys,

1. I need a bit of advice. I have seen a property selling for R150k, I want to buy it and pay it off for no more than two years. The bond will be in my Aunt's name but I will cover the cost. So when the bond is paid off will I need to pay anything to my Aunt for transferring the property under my name?

2. Let's say I buy a property for R50k, how much will I have to pay in bond registration and transfer costs? I here it takes 3 months for everything to be sorted out. I would like to know how can one fast-track the process considering that I will be paying cash.

Thanks in advance
 
There is no transfer duty if a property is sold for under R500,000. You may still have some expenses arising though like the fees payable to register the transfer.
 
news24 said:
Hi Guys,

1. I need a bit of advice. I have seen a property selling for R150k, I want to buy it and pay it off for no more than two years. The bond will be in my Aunt's name but I will cover the cost. So when the bond is paid off will I need to pay anything to my Aunt for transferring the property under my name?

2. Let's say I buy a property for R50k, how much will I have to pay in bond registration and transfer costs? I here it takes 3 months for everything to be sorted out. I would like to know how can one fast-track the process considering that I will be paying cash.

Thanks in advance
Click to expand...
Nope , you wont be paying cash.
The bond , in your Aunts name will need to be registered against the property - fees involved for bank's evaluator and lawyers fee to register the bond.
The property transfer and deeds registration in your Aunts name will cost at the time of purchase and again when transferred into your name (not sure how much for that value property).

If you cant get a bond that small in your own name, should you be placing your Aunt at risk?

R150K, is that for a lock-up garage?
 
Property for 50k?? Is this a parking space?
 
Frankie said:
Nope , you wont be paying cash.
The bond , in your Aunts name will need to be registered against the property - fees involved for bank's evaluator and lawyers fee to register the bond.
The property transfer and deeds registration in your Aunts name will cost at the time of purchase and again when transferred into your name (not sure how much for that value property).

If you cant get a bond that small in your own name, should you be placing your Aunt at risk?

R150K, is that for a lock-up garage?
Click to expand...

R50k will be for a second property which I will pay for it cash, I just want to know how long it will take for me to have the property registered under my name, and if it's possible to get it registered under 1 month period.

For the R150k property, it's a run down property in Orkney, which I plan to renovate and sell later, hopefully at 150% over the original price.

Thanks again for your input
 
The 3 months can't be fast tracked, that's how long it takes at the deeds offices, they're slow... took me 4 months. I know a friend of mine waiting 9 months.
 
news24 said:
R50k will be for a second property which I will pay for it cash, I just want to know how long it will take for me to have the property registered under my name, and if it's possible to get it registered under 1 month period.
Click to expand...
With the downturn in the property market, the deeds office are doing transfer & registrations in about one month - depends on your area as well.

My most recent purchase in December last year took about 4 weeks at the CT deeds office.
For the R150k property, it's a run down property in Orkney, which I plan to renovate and sell later, hopefully at 150% over the original price.

Thanks again for your input
Click to expand...
Good move if you have the time and money to do this.
 
rorz0r said:
Property for 50k?? Is this a parking space?
Click to expand...

No, it's for township property, a one room Shack(It will be able to make me at least R12k net profit per month before August). I'm more interested in the land. I have a problem committing myself to pay off anything over a period of more than 24 months. The only thing that I've paid on installments is my cellphone contract, I've never bought anything on credit, I'm creditphobia.
 
news24 said:
No, it's for township property, a one room Shack(It will be able to make me at least R12k net profit per month before August). I'm more interested in the land. I have a problem committing myself to pay off anything over a period of more than 24 months. [that's going to change when you're indebted to your Aunt if she's foolish enough to put the bond on he name] The only thing that I've paid on installments is my cellphone contract, I've never bought anything on credit, I'm creditphobia.
Click to expand...

Surely a property that has the potential to bring in a net profit of R12k per month does not sell for R50K ?????
 
He probably want to rip of some of the SWC tourist -"get the whole township experience"
 
Frankie said:
Surely a property that has the potential to bring in a net profit of R12k per month does not sell for R50K ?????
Click to expand...

I'm hoping that I will find someone who is desperate for cash, so that I can buy the stand for <R50k. It's nothing illegal, there is a high demand of student accommodation and I'm going to take advantage of that. The thing is that many township people don't know how to take advantage of opportunities that are around them, they are either looking for work or government handouts.

I know of one lady in Luka(village near Rustenburg) where land is free, subject that you are a member of the tribe, she has tenants in her yard occupying 24 rooms working in nearby mines, netting R14500 p/m. Who would have thought?
 
Something tells me that having 24 tenants on a single property is HIGHLY illegal unless you've registered as a hotel/hostel type arrangement.
 
ToxicBunny said:
Something tells me that having 24 tenants on a single property is HIGHLY illegal unless you've registered as a hotel/hostel type arrangement.
Click to expand...

Well the village falls under the jurisdiction of Royal Ba***eng, so I don't think those type of laws are enforced, besides almost each & every yard has backroom tenants, those people are hardly broke.
 
The laws apply, regardless of which jurisdiction they fall under....

24 people "tenanting" in a single property sounds to me like a commercial venture, which would be regulated if you ask me.
 
ToxicBunny said:
The laws apply, regardless of which jurisdiction they fall under....

24 people "tenanting" in a single property sounds to me like a commercial venture, which would be regulated if you ask me.
Click to expand...

It would also be interesting to find out how much of that rental income is being declared....
 
You say that you will make R12k nett profit per month on a one room shack? Unbelievable, but go for it.........
 
And those 15 rooms will cost you how much to build?
Considering they will all have to meet specific building regulations, since you will be building them for the sole purpose of renting them out in a commercial fashion.

And will you have your neighbours permission to build the 15 rooms for the sole purpose of renting them out?
 
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