Greeff Christie's Overberg is helping property buyers better understand their financial obligations when purchasing property, following new figures showing nearly eighty percent of property sales in South Africa are below the R2 million mark.
Managing Director of Greeff Overberg, Jaco van der Merwe, says that while the property-buying process can be exciting, many buyers – especially first-timers – are often unaware of the extra costs involved beyond the purchase price. Recent Lightstone (research company) reports show that between 19% and 21% of total property sales in South Africa fall above the R2 million mark, underlining the importance of educating buyers about their financial responsibilities.
Van der Merwe stresses that the primary obligation of any purchaser is straightforward: to pay for the property. However, several additional costs can catch buyers off guard if they aren't properly informed. These include transfer duty, bond registration fees, and conveyancing costs. Transfer duty, for example, is not charged on properties sold for R750,000 or less, but can climb significantly on higher-priced properties – a R17 million home, for instance, attracts transfer costs of roughly R1.8 million. Buyers who require bond finance will also need to cover the cost of registering the bond, as well as the conveyancing fees, which are paid by the purchaser even though the seller appoints the attorneys.
Timing is just as crucial as the payments themselves. Buyers paying cash are usually expected to complete payment within 15 days, while those relying on bond financing should allow at least 30 days for approval. Van der Merwe advises buyers who are dependent on selling an existing property to carefully structure their timelines and include contract clauses that clarify their source of funds, ensuring the process runs smoothly.
Jaco van der Merwe, Managing Director of Greeff Overberg, says: “Buying a property is one of the biggest financial decisions people make. Our goal is to simplify the process by making sure buyers understand not only the price tag, but all the other costs and timelines involved.”
