TIP ON COSTS OF OWNING A HOME

You have understood the money needed to pay the purchase price plus the costs of buying your home. Now what?

Don’t overlook that you will need to maintain the cost of living in your home.

This will include:

       -   Monthly repayments to the bank for your home loan

       -   Water & electricity

       -   Rates & basic municipal services

       -   Insurance premiums

       -   Monthly levies (if you buy into a complex/block of flats/gated community)

       -   Monthly premium for armed response

       -   Costs of maintenance/repairs (globes, paint, garden, pool chemicals)

 

INSURANCE AS A HOME OWNER

Purchasing your home and its contents takes significant financial investment. As a home owner you should ensure that you are adequately covered in order to safeguard your home from unforeseen loss or damage caused by fire, theft or natural disasters. Here are some important home insurance tips.

Make sure that you have the right insurance cover for your home and remember to give your insurer the details of the property that you now own:

There are three main types of insurance.

 

• Insurance for the structure of your home

 This will cover you for any structural damage to your walls, ceiling, roof  - for example, in the event of a fire. This insurance is sometimes included in your mortgage bond and your monthly premiums may already be covered.  *check with your bank.

 

• Insurance for the contents inside your home

Furniture, TV, computers, etc. This insurance will cover you for the risks of your goods e.g. being damaged in a storm or electricity power-surge or stolen.

 

•  Insurance for third party liability

This will cover you for the type of risk that you have for owning a home and the responsibility to make sure it is a safe environment.  It will protect you for if someone is injured on your property and you need to pay their medical account. 

 

TIP

As a BUYER, what documents should I have handy?

1. Identity document
2. Proof of residence
3. Proof of marital status (marriage certificate)
4. Antenuptial contract or divorce order
5. SARS correspondence reflecting your income tax number
6. Experienced and reputable attorney – hyperlink to Woodhead Bigby Conveyancing section on the website

 

Basic property terminology simply interpreted:

Mortgage bond	Home loan, the money borrowed to buy a house.
Transfer Duty	Tax to be paid to SARS when buying a home.
Conveyancing Transfer	The process for a conveyancer to follow to facilitate the de-registration of property ownership from the name of the seller and the registration of the property in the name of the buyer.
Conveyancer	An Attorney further admitted in the High Court of South Africa with qualifications in property and land registrations.
Notary Public	An Attorney further admitted in the High Court of South Africa with qualifications in movable property, loans, trusts, property ownership rights and contracts.
Deeds Office	The office of the Registrar of Deeds which is a functionary/extension of the High Court of South Africa.  There are different Deeds offices within the various Provinces of South Africa and each record ownership rights to land within their jurisdiction of the office.
Levies	Monthly amounts payable to the body corporate when your home is in a block of flats/complex/gated community.
Sectional Title	Property in a block of flats/complex/gated community.
Conventional Title	Property that is seen as ‘free standing’ / traditional house most often not within a gated community.
Rates	Monthly amounts payable to the Municipality within the jurisdiction where your home lies.