KNOW EXACTLY WHAT YOUR COSTS ARE BEFORE
YOU PURCHASE… |
|
Before
looking for your home, it benefits you to
know what you can afford and how much a
property will cost you in terms of bond
repayments and the total cost of the loan.
It
is a fact that prospective homeowners need
to do their budgets before putting in an
offer to purchase. If you do not, you could
be burdened with costs you may be unable
to afford.
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| An
Example: |
Jessica
is a 38-year-old senior
manager in Gauteng.
She earns R35, 000 gross
per month with total
monthly expenses of
R10 000. |
Jessica
asks…
•
What loan amount do I qualify
for?
•
What will my monthly repayments
be?
•
What if I pay extra each month?
•
What will my registration and
transfer costs be?
•
What is the difference cost-wise
between a VAT and
•
non-VAT
registered seller?
•
What is Transfer Duty?
•
What home-loan options are there?
Calculators
by OOBA:
|
 |
Calculations…
Jessica
qualifies for a home loan between
R797, 394 and R1, 518, 846.
If Jessica purchases her home for
the maximum R1, 518, 846, her repayments
would be R20, 000 per month for
20 years. This is assuming the interest
rate remains at 15% over the full
term. Her total loan amount is R4.8million.
What
loan amount do I qualify for?
What
will my monthly repayment be?
|
Pay
a bit extra…
If Jessica chooses to pay an
extra R300 per month, she reduces
her loan term by approximately
1½yrs and thereby reduces
her total loan amount by R327,
005.
What
if I pay extra each month?
Bond
and transfer costs for Jessica…
This calculator allows Jessica
to determine the costs associated
with the purchase of property
and those costs related to the
registration of her home loan.
These costs are often overlooked
when purchasing a property and
should be taken into account
when assessing your affordability.
With a seller that is
not VAT registered, what could
Jessica’s costs be?
What
will my registration and transfer
costs be?
With
a seller that is VAT registered,
these costs are very different
as the VAT may be payable
on the purchase price
and not transfer duty.
Jessica could save herself
R66, 508 if she purchases
a property from a VAT
registered seller.
What
will my registration and
transfer costs be if vendor
is VAT registered?
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|
What
is Transfer Duty?
This is a government taxation,
which applies in every case
except where the seller is a
registered VAT vendor (an example
being a property developer).
It is calculated as a percentage
of the purchase price and varies
depending on the purchaser's
legal status.
The transfer duty is
as follows:
• For a legal person it
is 8% for a natural person the
calculation is as follows:
• For a purchase price
of R0 - R500, 000, the duty
is 0%
• For a purchase of R500,
001 - R1, 000, 000, the duty
is 5%
• For a purchase price
of R1, 000, 001 and above, the
duty is R25, 000 + 8% on the
value
•
above R1 000 000.00
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|
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 |
| -------------------------------------------------------------------------------------------------------- |
To
create your own
personal estimated
costs payable
by you, the purchaser,
click
here. |
|
| -------------------------------------------------------------------------------------------------------- |
|
RESIDENTIAL
LIFESTYLE PROPERTIES
FOR SALE IN SOUTH
AFRICA:
The
Properties For Sale
in South Africa: |
| Click
through to the below
areas to view some
fabulous opportunities
on offer. |
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INVESTORS
NOTICE BOARD
JUNE '08 |
|
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BUMPER
APRIL SALES DESPITE
TOUGHER TRADING
ENVIRONMENT
PGP reports ongoing
activity at top
end of market. |
|
 |
|
| Despite
the tougher trading
conditions in the
property market,
Pam Golding Properties
has reported a resurgence
of activity in the
Cape metro area,
with numerous key
sales concluded
during the month
of April 2008. |
| ...Read
On |
|
|
|
| GRAHAMSTOWN
– WHERE THE LIVING
IS EASY |
|
 |
|
| Charismatic
Grahamstown, home to Rhodes
University and the renowned
National Arts Festival
and just 60km from the
coast, has always had
major appeal for homebuyers.
Now the area is fast becoming... |
| ...Read
On |
|
|
| FIVE
STAR SECTIONALISED OPPORTUNITY
FOR NEW “DRY”
HOTEL IN CAPE TOWN |
|
 |
|
| A
new five star hotel, the
Coral International, is
under construction in
central Cape Town –
and the owners have announced
that 30 of its rooms and
suites are to be offered... |
| ...Read
On |
|
|
| ART
DECO APARTMENTS RESTORED TO
FORMER GLORY |
|
 |
|
| Twelve
unique apartments have come
onto the market in Green Point,
Cape Town, following the restoration
of the Art Deco building “Camberleigh
Place”. Original design
features such as... |
| ...Read
On |
|
|
| OWN
A PIECE OF THE TALLEST, ICONIC
RESIDENTIAL BUILDING ON THE
PLANET |
|
 |
|
| For
property investors who regard
themselves as “trophy”
property buyers, settling only
for the best, most iconic properties
in the world, The Chicago Spire
in booming Chicago, Illinois
must surely top the priority
acquisition list. |
| ...Read
On |
|
| SECURE
ESTATE LIVING AT RIVERSEND,
PIETERMARITZBURG |
|
 |
|
| With
the third phase of expansion
of the hugely successful Liberty
Midlands Mall in Pietermaritzburg
now approved - with plans to
include a hotel, offices and
a value retail centre –
a new secure residential development.. |
| ...Read
More |
|
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| BOOMING
KAROO HEIGHTENS DEMAND FOR TOURISM
ACCOMMODATION |
|
 |
|
| While
still in its infancy, the travel
and tourism industry in the
Karoo is increasing at a phenomenal
rate, spurred on by the restoration
and renovation of homes by new
property owners who have invested
in... |
| ...Read
On |
|
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| FORMER
MINING VILLAGE REDEVELOPED WITH
HOMES PRICED FROM JUST R345
000 |
|
 |
|
| With
affordability a key issue among
many homebuyers - given the
higher interest rates and rising
food and fuel costs - the suburb
of Springs on the eastern border
of Gauteng is... |
| ...Read
On |
|
|
| HOSPITALITY
INDUSTRY GEARS UP FOR 2010 |
|
 |
|
| As
the 2010 Soccer World Cup approaches,
there is much debate about the
benefits of this major global
event for South Africa. Joop
Demes, MD of Pam Golding Hospitality,
says... |
| ...Read
On |
|
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| SIZEABLE
PLOTS, VALUE FOR MONEY STILL
TO BE FOUND IN PINELANDS |
|
 |
|
| In
the wake of interest rate hikes
and tighter mortgage controls,
affordability is more than ever
a major issue for property buyers.
Areas offering value for money
are in demand, as buyers... |
| ...Read
On |
|
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| CASH
IS KING IN CAPE TOWN'S SOUTHERN
SUBURBS’ TOP END |
|
 |
|
| The
southern suburbs property market
continues to show resilience,
despite the tighter market conditions
brought on by the National Credit
Act, overseas influences and
rising interest rates. Pam Golding
Properties reports that its
agents sold over... |
| ...Read
On |
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