Registering a bond

[Dolby]

If I have a fully paid for property for R1 million and wish to do R200,000.00 worth of modifications, I'm told the best way to finance would be register a bond against this property.

Does the bond registration cost the same regardless of whether I take R100,000, R200,000 or R500,000?
Do I need to stipulate this amount upfront? In other words if I really only want R200,000, is it better to take R250,000.00 or higher incase of unforseen costs?

 

[ToxicBunny]

Did you not leave the bond open on the property? (even with a balance of like R1)

 

[NeonNinja]

In the estate world there's cost to almost everything. If you're looking at R200k, set it at R230k.

Agent in our case took R50k off of R500k deal.

Depends on their clauses.

Anyways everything will be explained and stipulated on paper as the process goes.

End of day, you sign.

 

[quovadis]

If I have a fully paid for property for R1 million and wish to do R200,000.00 worth of modifications, I'm told the best way to finance would be register a bond against this property.

Does the bond registration cost the same regardless of whether I take R100,000, R200,000 or R500,000?
Do I need to stipulate this amount upfront? In other words if I really only want R200,000, is it better to take R250,000.00 or higher incase of unforseen costs?

Hi Dolby

Bond registration costs (Conveyancing fees, post + petties, vat and deeds office) are a sliding scale and there is not much of a cost difference between R200,000 and R300,000. A conveyancing attorney will be able to assist in a quotation for this. Also - keep in mind your bank will levy an initiation fee on the loan. If you have an existing bond on the property with no balance you may be better off to just draw from that bond if the facility exists.

If memory serves me correctly a 300k bond registration + new loan would probably be 6-8k for the bond reg and 5-6k for the initiation fee. Please consult your bank and attorneys for actual amounts as these figures might not be accurate.

 

[Dolby]

Did you not leave the bond open on the property? (even with a balance of like R1)

Was in an estate and then a trust for years - one of them closed it

 

[Dolby]

Hi Dolby

Bond registration costs (Conveyancing fees, post + petties, vat and deeds office) are a sliding scale and there is not much of a cost difference between R200,000 and R300,000. A conveyancing attorney will be able to assist in a quotation for this. Also - keep in mind your bank will levy an initiation fee on the loan. If you have an existing bond on the property with no balance you may be better off to just draw from that bond if the facility exists.

If memory serves me correctly a 300k bond registration + new loan would probably be 6-8k for the bond reg and 5-6k for the initiation fee. Please consult your bank and attorneys for actual amounts as these figures might not be accurate.

Thanks.

Ok so when I bought a house, the majority of what I paid was transferring into my name I guess? Under R10k isn't bad at all - was scared closer to R50k cost

 

[quovadis]

Thanks.

Ok so when I bought a house, the majority of what I paid was transferring into my name I guess? Under R10k isn't bad at all - was scared closer to R50k cost

Depending on the price of the house yes - generally transfer duty is the much larger amount when compared to the bond registration costs.

 

[Dolby]

Perfect - just wanted to know

I just remember a whack of a single fee that I paid last time and wasn't aware of the split. Thanks again!

 

[quovadis]

Perfect - just wanted to know

I just remember a whack of a single fee that I paid last time and wasn't aware of the split. Thanks again!

Found this - not sure how updated it is but it gives a decent idea:

http://www.jouberts.co.za/services/conveyancing/transfer-bond-costs.php