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General

Transfer Duty

Conveyancing
When yo buy your house the price you pay is not just the purchase price and agents commission. I have found many first time buyers not aware of this additional amount required to take ownership. No financial Institution will finanace these costs. It is also illegal to enter into an agreement with the seller to inflate the price to recover Registration and Transfer costs. The additional costs and formulas are outlined in the appropriate window, please note that you can obtain a card with most of these tables from your local financial institution.
Lets take the value of the house to be R600 00,00. Transfer duty is as follows

upto R150 000 =0%

R150 000 - R320 000= 5% (R170 000X5%)

R320 000 - R600 000= 8% (R280 000x8%)

TD will be: R8500+R22400=R30 900
 

These are merely guidelines as there is no law governing these fees. Below are the recommended tariffs for a few scenarios.

R300 100 - R350 000 = R3700      

R400 100 - R450 000 = R4260

R500 100 - R550 000 = R5090

R600 100 - R700 000 = R5640

Liberty Life     

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Bond Registration Fee
The following once agagin is an example of the recommended tarrif and can differ between institutions, this is where a bond originator is so vital in finding the best package for you. 

Bond Value  Stamp Duty+ Conveyancer = Bond Reg

R190 000-    R380 + R1720 = R2100

R250 000-    R500 + R1960 = R2460

R350 000-    R700 + R2680 = R3380

R500 000-    R1000 + 3170 = R4170

R700 000-    R1400 + R4070 = R5470

Please consult with the transfering attorney as chosen by the seller. Refer to sellers rights by law

Bond Repayment
 

On average the current bond repayment factor used is 10.66 per R1000. The calculation is very simple.

Purchase Price = R350 000

now multiply 350 x 10.66

bond repayment (20yrs) = R3731pm

Note that as interest rates rises so your factor will increase. Here are some factors (F) for future reference.

IR = 11.75% F = 10.84/1000

IR = 12.25% Factor 11.19/1000

IR = 13% Factor 11.72/1000

Please consult your financial institution or chat to your motgage originator about your bond repayments   

         
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