Hidden costs when buying a home...

This guide breaks down common hidden costs of buying a home 

1. Transfer Duty

• This is a government tax on property purchases over R1,100,000.
• Rates vary depending on the purchase price.

2. Bond Registration Fees

• If you're financing the home, the bond must be registered at the Deeds Office.
• Attorneys handle this, and they charge fees based on the bond amount.

3. Conveyancing Fees

• These are the legal fees for transferring the property into your name.
• Paid to a conveyancing attorney, and the amount depends on the purchase price.

4. Rates and Levies Clearance

• The seller usually pays up to the date of transfer, but sometimes buyers may be required to contribute upfront for future rates or levies (especially in sectional title properties).

5. Home Insurance

• Most banks require home insurance before they approve a bond.
• This can be a once-off or ongoing monthly cost.

6. Deposit Costs

• While not exactly "hidden," it's often overlooked how early buyers need to pay the deposit (usually within 7 days of offer acceptance).

7. Occupational Rent

• If you move in before transfer is complete, you may need to pay the seller rent.

8. Municipal Connection Fees

• There may be fees to reconnect water and electricity or to open a new municipal account.

9. Moving Costs

• Don't forget budgeting for movers, utilities reconnection, and initial maintenance.

Bonus Tip: Special Levies in Complexes/Estates

• If buying in an estate or sectional title, check if any special levies are due - these are extra fees to cover large maintenance projects.

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