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- Click here to listen to the podcast.<\/strong><\/a><\/li>\n<\/ul>\n
If you would like to keep track of the tips discussed in this episode, the key points are summarised below.<\/p>\n
![\"Reeflords](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2020\/11\/Reeflords-2-1024x496.jpg\")
<\/p>\nLevies<\/h3>\n
Levies are issued to property owners to cover the expenses associated with the running of an estate.<\/p>\n
These may include garden services, refuse removal, electricity for common property areas, effluent and sanitation, water, and electricity or gas.<\/p>\n
Special levies may be incurred by property owners for costs related to renovations, paving upgrades, or approved modifications that are required for the upkeep of the estate.<\/p>\n
Both levies and special levies are the responsibility of the property owner and will be required whether you are buying an existing unit in an existing complex, or a new unit in a new complex.<\/p>\n
You should ask the seller for the latest bills to calculate an average of what you can expect to pay monthly, and in the case of buying a new property in a new development, you can ask for an estimation of the bill.<\/p>\n
If you have bought into a development with prepaid electricity meters in each unit, be aware that there will still be additional electricity costs issued as levies by the body corporate.<\/p>\n
This is for electricity that is required in common areas (outside of your own unit) and range from things like the streetlights to the running of the guard house.<\/p>\n
Rates and Taxes<\/h3>\n
Rates and taxes are the responsibility of the property owner (not rental tenants) and cover items such as electricity, refuse removal, water, and sanitation.<\/p>\n
All owners are liable for rates and taxes.<\/p>\n
Transfer Duties<\/h3>\n
Transfer duties apply to buying an existing home or a unit in a complex from a seller or developer.<\/p>\n
This is an upfront, once-off payment that covers the cost imposed by SARS and is based on the purchase price for properties over R1 million.<\/p>\n
If you are purchasing directly from a developer, you pay VAT instead of transfer duties.<\/p>\n
Transfer Costs<\/h3>\n
Transfer costs are different to transfer duties in that they cover the administrative costs of transferring the title deed into the purchaser’s name.<\/p>\n
These costs are derived by the deeds office fees and the attorney\u2019s fees associated with the administration of all relevant paperwork.<\/p>\n
If you are buying a previously-owned property, the buyer is liable for the transfer costs and if you are buying from a developer, the transfer costs are usually covered by the developer.<\/p>\n
Reeflords Property Development covers these costs for its customers, but this may not be the case with other developers.<\/p>\n
Bond Costs<\/h3>\n
Bond costs relate to the costs incurred for the registration of the bond of the property and include attorneys and disbursement fees.<\/p>\n
If you are looking at a property valued at R1million, then you can estimate your bond costs to be in the region of R12,000.<\/p>\n
If you are buying a previously-owned home, you bear the bond costs, whereas if you are buying from a developer, the developer may cover this cost.<\/p>\n
Reeflords covers bond costs at certain developments, while others are discounted.<\/p>\n
Reeflords<\/h3>\n
Initiating the process of buying a house is a decades-long commitment that can\u2019t be made without resolute trust, which is why Reeflords<\/strong><\/a> prides itself on making the home buying process as transparent as possible.<\/p>\n