HOW TO BUY A HOUSE?
I do not know about you- but I am at that stage where I am sick of moving around and living in apartments. My future hubby to be and I have recently decided to purchase an asset in a form of a house, that way we have a home to live and to build a family.
Only problem is- where do you start?? No one ever taught me how to do any of this- who do you talk to???
I found myself having to ask advise form my boss, the accountant at work and my parents and yet no one really had any clear advise for me on how to go about purchasing a house.
what makes it worse is that the house we wanted to buy was what the bank calls an "insolvent property"- this by the way means a whole lot of red tape and extra costs ( if I had known all of this before putting in my offer with the auctioneers- trust me i would have 180'd my decision)
anyway so- first thing is first, we decided we wanted the house we where currently renting ( the owner was proven insolvent and we where told that we had the option to put an offer on the house or move out in 30 days)
we obviously decided that the most adult thing to do- would be to purchase the house since we had fallen in love with it.
our next step was to call the auctioning company,put in an offer,sign the papers and we where good to go right? ( NOT!!!!!!!)
little did we know that because its an insolvent property things would turn out more complex than a "normal" purchase.
steps to follow when wanting to purchase a house:
I still had to pay "interest" which is in essence like occupational rent- Because I lived in the house that i wanted to purchase, i was liable to pay occupational rent until the property was put into my name.
Over an above all of this- you have to pay your deposit ( usually 10% of the purchase price)- and your transfer attorney costs ( can range from anything from R7000- R25'000) and bond attorney costs ( similar to transfer attorney costs)
I do not know if you agree with me, but this is quite a huge amount of money- and if you do not have any of this money saved up, it means that you will have to take out a loan for all of this!
Over and above, you still have to pay for an electricity compliance certificate ( which will cost you approximately R800 excluding the call out fee and readjustments done to your electricity for you to "qualify") and for your water electricity ect ect ect ect ect blah blah blah...
I know this all sounds complex- but it would not be if we where taught all of this at school!!!!!!! it is soooo humiliating for me as an adult to be communicating with my transfer attorney and not know anyof their jargon or the right procedures to follow!!!
Needless to say i am still waiting for the DEEDS office to sign the papers from my transfer attorneys - so I can FINALLY own this property!!
I really hope this has helped one of you out there- in case you are thinking of purchasing property.
My advise:
DO NOT BUY AN INSOLVENT PROPERTY- IT IS NOT WORTH THE TROUBLE AND FINANCIAL STRESS!!! TRUST ME!
I do not know about you- but I am at that stage where I am sick of moving around and living in apartments. My future hubby to be and I have recently decided to purchase an asset in a form of a house, that way we have a home to live and to build a family.
Only problem is- where do you start?? No one ever taught me how to do any of this- who do you talk to???
I found myself having to ask advise form my boss, the accountant at work and my parents and yet no one really had any clear advise for me on how to go about purchasing a house.
what makes it worse is that the house we wanted to buy was what the bank calls an "insolvent property"- this by the way means a whole lot of red tape and extra costs ( if I had known all of this before putting in my offer with the auctioneers- trust me i would have 180'd my decision)
anyway so- first thing is first, we decided we wanted the house we where currently renting ( the owner was proven insolvent and we where told that we had the option to put an offer on the house or move out in 30 days)
we obviously decided that the most adult thing to do- would be to purchase the house since we had fallen in love with it.
our next step was to call the auctioning company,put in an offer,sign the papers and we where good to go right? ( NOT!!!!!!!)
little did we know that because its an insolvent property things would turn out more complex than a "normal" purchase.
steps to follow when wanting to purchase a house:
- all banks have online bond calculators ( see if you qualify for one an if so how much)
- sign purchase offer
- go to the bank and apply for the bond
- if you get approved ( this procedure should not take more than 2 weeks) then good for you- if not
- apply with another ( i found that the bank that banked with gave me the least amount out of all banks- so I applied with other banks to get a better offer)
- once you get approved- the bank organises a transfer attorney for you- to transfer all documents into your name.
- once the transfer attorneys have done their part- the bond attorneys get contacted
- you then get called in and you sign the bond papers and transfer attorney papers.
I still had to pay "interest" which is in essence like occupational rent- Because I lived in the house that i wanted to purchase, i was liable to pay occupational rent until the property was put into my name.
Over an above all of this- you have to pay your deposit ( usually 10% of the purchase price)- and your transfer attorney costs ( can range from anything from R7000- R25'000) and bond attorney costs ( similar to transfer attorney costs)
I do not know if you agree with me, but this is quite a huge amount of money- and if you do not have any of this money saved up, it means that you will have to take out a loan for all of this!
Over and above, you still have to pay for an electricity compliance certificate ( which will cost you approximately R800 excluding the call out fee and readjustments done to your electricity for you to "qualify") and for your water electricity ect ect ect ect ect blah blah blah...
I know this all sounds complex- but it would not be if we where taught all of this at school!!!!!!! it is soooo humiliating for me as an adult to be communicating with my transfer attorney and not know anyof their jargon or the right procedures to follow!!!
Needless to say i am still waiting for the DEEDS office to sign the papers from my transfer attorneys - so I can FINALLY own this property!!
I really hope this has helped one of you out there- in case you are thinking of purchasing property.
My advise:
DO NOT BUY AN INSOLVENT PROPERTY- IT IS NOT WORTH THE TROUBLE AND FINANCIAL STRESS!!! TRUST ME!
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