Bond registration costs (incl VAT) R 0: Bond registration cost (incl VAT) R 0. Or, if your home loan is between R 600 000.01 and R 800 000.00, the required fee fee is R 700.00. The fee is regulated by the National Credit Act and is currently set at a maximum of R5 000. While agent’s commission is often one of the first cost considerations that sellers think of when it comes to selling their home, there are other costs that sellers and buyers need to keep in mind as well. The time-series stretches back to 2006. And these often don’t become clear until the transaction is well underway. 3. This new certificate will be mandatory when selling your home in South Africa – here’s what you need to know . How agent’s commission is determined and what agents do to earn their commission. What it takes to start a career in real estate. But, the hidden costs of buying a house in South Africa can take many potential homeowners by surprise, and often thwart the entire purchase. House prices in South Africa. READ MORE: Here’s how to get the most out of your estate agent. An Electrical Compliance Certificate is required by law for the property to be transferred to the buyer's name. Based on FNB’s data, ‘downscaling due to financial pressure‘ was only the the fourth biggest reason why South Africans sold their homes in the first quarter of 2018 (12.1%). As the seller of a property in SA, you have to pay these costs if they apply to you: Municipal rates and taxes, and often costs for services (such as electricity and water) for up to 4 months in advance ; Body corporate or Homeowner’s association levies, in advance; Estate agent … Compliance Certificates: These include the Electrical Certificate of Compliance (COC) and can cost anything from R1200 upwards, depending on the amount of work that is needed. ABSA releases a monthly house price index for South Africa, based on the total purchase price of houses of 80m2 to 400 m2 size, costing R3.5 million or less, whose loans were approved by ABSA. All Rights Reserved. So you decided to sell your property and you are dreaming of what you are going to buy with the profit you will be making. Also keep in mind that an electrical COC expires after two years. Bank initiation fee (incl VAT) * R 0. The hidden costs you should know about when buying or renting a home in South Africa. Not only do they negotiate for the seller and connect the seller with strategic partners like conveyancing attorneys, but they also research recent sales in the area in order to determine a realistic listing price, advise on repair work that should be undertaken prior to listing, create a marketing plan that works for the seller and screen suitable purchasers before introducing them to the property amongst others. This information has not been provided to meet the individual requirements of a specific person and LegalWise insists that legal advice be obtained to address a person’s unique circumstances. Agents perform various duties and have knowledge of legislative procedures that an owner will not necessarily even be aware of. Back to Property Advice Advice Centre Property Advice 5 unexpected costs when selling your home. A municipal deposit payable to the municipality when opening the account. While some of these expenses can be offset against the final sale price, others will need to be settled before the sale can go … Since most property in South Africa is sold through Estate Agencies, we take a look at the professional services they offer: They will be available to show your property to prospective buyers removing the necessity for you to be present. These are probably the biggest cost associated with buying a property. The costs involved in selling a house can add up quickly, and selling a house in South Africa costs a fair amount, which is why you need to be prepared for every process that will come your way. As counter-intuitive as it might be, selling a property can be quite an expensive exercise. This, and any electrical repairs that need to be made, is for your account. Rates and taxes clearance certificate. My advice is to pay extra into your bond every month to bring it down faster. Your agent will be able to advise how. Selling your house is a big step, and your main goal would be to sell your property in the shortest possible time with maximum financial return. The selling costs can be divided into five main categories, each of which include a number of costs that may or may not apply. Steve van Wyk, Seeff’s MD in Centurion, says while agent’s commission is often set at around 7% of the value of the property plus VAT, sellers and agents can always choose to negotiate a set fee instead. What costs are sellers responsible for during a property sale? Real estate market in South Africa House prices have been relatively stable in South Africa, with homeownership levels at around 60% of the population. When we are young we do not dream about the twenty years that it may take to pay off a bond. If you use the services of an estate agent, this cost is usually covered by the estate agent. Get the latest property advice in South Africa. Municipality final figures: As the seller you will need to pay around four months extra on your rates and services. Bond costs. Banks often add this figure to the bond amount. There is no set rate of commission. Trevor Sturgess, MD of Seeff Kibler Park, always encourages his clients to look carefully at the other costs involved with selling. Once you have your requirements in mind, you can begin the house … Cost is to be quoted for. We are pleased to offer a range of property in South Africa. House buying costs in South Africa. V… Transfer Duty this is a tax to the government on properties over R900 000. Buying, Renting, Selling, Finance, Guest Experts, Courses, Home Owners. Get the best of Private Property's latest news and advice delivered straight to your inbox each week. Not to mention, if you are a home flipper in the making, you will be more than thrilled to have acquired a new asset to spruce up and sell for a profit. Article summary. Post, petties, FICA other fees (incl VAT) *** R 0. Source: FNB Estate Agents Survey. 1. They are also unavoidable. Relocation costs and administration: Moving trucks, breakages, the administration of informing people of your change of address and taking days off work to coordinate the move should also be considered. Private Property is an easy-to-use online portal available to help you find your dream home through listing South Africa’s top homes currently on sale. 2020 Cost of selling a house in Australia – state by state guide. A bond initiation fee of around R6000 plus VAT that is payable to the bank granting the bond. Among the legal costs for selling a home in South Africa is the cost of bond cancellation, which is carried out by the bond attorney appointed by the bank. You may also be required by the buyer's bank to provide a Beetle/ Infestation Clearance Certificate. For example, if your home loan is R 150 000.00 and below, the fee is R 310.00. Personal savings topped finance agendas this month. 2. Buyers can make payments to the registering (bond) attorneys before the bond is registered. Until the launch of Steeple, South Africa’s first online estate agents, in 2012, selling your house in South Africa meant you only had a choice between these two ways to sell property (namely, using a traditional estate agent or selling privately). the first R 40 000.00 of capital gain/loss per year (2017/18 tax year) is exempt from CGT. Transfer duty. Press • Jan 22, 2019. If you received a certificate when the electric fence was installed this will suffice. Transfer costs (incl VAT) R 0: Property transfer costs (incl VAT) R 0. If you have a bond on the property there will be a charge to cancelling the bond when you sell. The average national price for an entry-level home (80–140 sqm) is around ZAR 937,000, with an average medium-size house currently costing around ZAR 1,255,000. Moving can add to your stress levels significantly. The costs involved in selling a house can add up quickly, and selling a house in South Africa costs a fair amount, which is why you need to be prepared for every process that will come your way. Tips on how to make sure paying agent commission goes as smoothly as possible. Reasons for selling. Home Property Selling Costs in South Africa. Internet Explorer is a very old browser that is no longer supported by Microsoft. Buying a house in South Africa: A step-by-step guide The home-buying process may seem daunting at first, but the path is well signposted, and there are expert advisors who can help you along the way. How to avoid the dreaded ‘double-commission’ disputes. The information contained on this website is aimed at providing members of the public with guidance on the law in South Africa. Home > Advice > Selling > What costs are sellers responsible for during a property sale? The industry standard and statistics about what estate agent commission is. South Africa’s top homes currently on sale. This is paid to the Cancellation Attorneys for cancelling your existing bond. To maximise sale price, many agents recommend professional styling and basic maintenance around the property. Find property in South Africa with Rightmove.co.uk - the UK's number one property website. 24 Jul 2018. All Rights Reserved. VAT) and the transfer cost estimate would be R23 980 (incl. Rates and taxes have to be paid 4 – 5 months in advance before registration, of the property into the name of the new buyer, can take place. … Selling prices are now on average 9.9% below asking prices – compared to the historical average of 9.0% since 2010. You can however claim back a portion of this after the property has been sold. Copyright © Private Property South Africa (Pty) Ltd. 1997 - 2021. Make sure you know exactly what you're in for, when it comes to all the costs involved with buying as well as selling property. They will pre-qualify the … Property in South Africa. As the seller of a property, you will have to pay the following: The commission that you agreed to pay to the estate agent – this should be agreed to in advance and is sometimes a fixed fee and sometimes a percentage of the selling price; the recommended rate is … Estimate these expenses before the decision about selling your property is finalised so you know how much will be left over in your bank account after you sell. This article originally appeared in Property Power 11th Edition Magazine. Transfer duty ** … A Plumbing Certificate and Beetle Certificate are also required in some instances. 5 unexpected costs when selling your home. These are to ensure that the plumbing is in order and that there are no insect infestations in the home. You can work out the fees on properties you’re considering by using ooba’s bond and transfer calculator. We suggest you upgrade your browser to one of the many newer and more secure options that are now available. The cost of selling a home. This Sellers Guide will take you through the processes encountered when selling a house, and provide you with useful tips from understanding the property market and house fix-ups, to choosing the right Estate Agent and … Press • Sep 5, 2019. the maximum marginal capital gains tax rate is 18%. the “primary residence” exemption is as follows: As a natural person/s, if you sell your home (which is personally occupied by you), for a gain/loss of R 2 million or less, the sale is exempt from CGT. Copyright © Private Property South Africa (Pty) Ltd. 1997 - 2021. They will ensure that the potential buyer is not a security threat before he she arrives to view your home. Calculate your selling costs with our detailed guide. “While it may seem like a practical and affordable idea to privately advertise your property instead of using an agent, this decision could end up costing you a lot of time and much more money than what the agent’s commission would’ve been in the first place. Although Capital Gains Tax (CGT) only applies on the gain from the disposal of a property, the gain takes the purchase cost into account. Staff Writer 11 August 2019. The followings costs are to be covered by buyers: Transfer costs to the transferring attorney. The first step is to ensure you know what you can afford, and the kind of home you wish to purchase. For corporate taxpayers or other trusts, no exemptions are available! These costs can have a big impact for first buyers and for our many foreign readers may come … *Proposed rates as announced by the Minister of Finance in the 2018 Budget. Discliamer: Every effort is made to ensure the correct figures are stated on the date of update of this article. Another certificate that the seller is required to provide is an Electric Fence Certificate that costs around R2000 or more depending on any work that needs to be done. Costs involved in selling property in South Africa, Here’s how to get the most out of your estate agent. The rate of commission is negotiable with the estate agent. Bond attorney costs: The buyer must pay the lawyers handling the mortgage finance for the bank. The listed price you see on sales brochures and websites do not tell the full story of how much you will need to pay up when buying a house in South Africa. The bond cancellation cost varies from institution to institution, but you can expect to pay upwards of R3 000 per bond, which is payable upon … But for houses of more than R3.6 million, sellers can expect a larger discount of around 14%. This is usually a percentage of the selling price. Sectional title clearance figures from the Body Corporate (for sectional title units): This could be a Special Levy which needs to be fully paid before the Body Corporate will issue a clearance certificate. So it is quite possible that home owners who have recently bought houses with 100% mortgage bonds will by now experience negative equity (the market value of the house is lower than the outstanding mortgage bond), says Erwin Rode, MD of Rode & Associations, one of South Africa… From the cost of advertising your house, obtaining compliance certificates and a rates and taxes clearance certificate, to bond cancellation fees, estate agent’s commission and capital gains tax, these are all the potential house selling costs you need to be aware of. After your deposit, the transfer duty is one of the biggest upfront and once-off costs to consider when buying a property. Moving costs can only be obtained by getting quotations from removal companies. Please refer to the latest edition of Property Power for up-to-date information. Rightmove.co.uk lists the very latest property in South Africa. Percent drop in asking price. It is important to remember that the law is … This means that corporate homeowners (CCs or companies or trusts) are faced with a high CGT bill when disposing of the underlying property in which the members/directors/trustees resided, at a flat rate of 22.4% for companies/cc’s and 36% for trusts. You should open the municipal account as soon as possible - usually between one and two months after registration. For many of you out there interested in buying a property it can come as quite a shock when you discover just how much all the associated fees can cost you in addition to any deposits and costs you incur with renovations and furnishing your new home. During South Africa’s worst previous recessions after World War II, residential property prices fell by up to 10%. The costs of selling property in South Africa are significant. From the cost of advertising your house, obtaining compliance certificates and a rates and taxes clearance certificate, to bond cancellation fees, estate agent’s commission and capital … It is common knowledge that the purchaser is responsible for the payment of the transfer costs and bond registration costs (if applicable) during the transfer process. The fee is usually 5 – 8% of the property selling price, plus … The attorneys will require a rates and taxes clearance certificate from the local council, the seller will need to put money upfront to get the certificate. Get the best of Private Property's latest news and advice delivered straight to your inbox each week. Motivation for a greater savings culture in SA by Finance Minister Pravin Gordhan was heard at the 10th anniversary celebrations of the SA Savings Institute. Subscribe. Sellers can save costs by letting the bank know that the property is for sale as soon as the property is listed. Ryan Brothwell 29 February 2020. To order your copy at the discounted price of R120 click here. A survey among estate agents shows that virtually all properties in this category were sold for less than … He says besides agent’s commission (usually set between 6% and 8% plus VAT of the selling price) sellers will also need to pay the following: Bond cancellation: This is the cancellation fee payable to the bond attorneys representing the bank that is used. Some costs attached to the bond cancellation process for sellers include: A penalty fee if you failed to provide 90 days’ written notice to the bank of your intention to sell the home. If you are buying as an individual (officially termed a ‘natural person’), duty is calculated on the following scale: If you buy a home in South Africa, you must pay transfer duty on the value of the property above R500,000 (€51,840). These are the major costs of selling property: the estate agent’s commission for selling the property. 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