Buying Property is a Big Commitment

Buying property is a big commitment. For this reason you have to make very sure that you get the best deal for your needs, and which you will ultimately be able to afford in the long run.

One of the most important activities you need to perform as soon as possible after your purchase is to obtain insurance for your home and property. This is so as to ensure that, in the possible case of damage occurring or total destruction of your home, yourself as a home owner will be financially protected.

The initial purchase and, hereafter, the general care of a property tends to be a rather costly endeavour a home owner may unexpectedly get themselves into, being unaware of all the expenses which come along with property ownership; and so a potential buyer needs to research all the costs of buying and selling property before making such a life-changing decision.

The Cost of Buying a Property

There are a number of costs which come along with buying a property. To avoid financial shock, one needs to take these costs into consideration when budgeting for the purchase of a new home.

Some of these costs for buying a property include:

• The Deposit
• Occupational Rent
• Transfer Costs (Duty)
• Conveyance Fees (Attorney Fees) as recommended by Law Society
• Deed Office Levies and Fees
• Municipal Rates and Body Corporate Levies
• Bank Charges
• Interim Interest
• Bond Initiation Fee
• Monthly Administration Fee

The Cost of Selling a Property

Just as is the case of buying a property, there are also great costs which come along with selling a property. A home owner should always be aware of any costs involved in the ownership of a property so that a budget can be properly drawn up and, in turn, so that no unexpected debt arises due to non-payment of these important costs.

Some of the costs which a home owner can expect when selling a property can be listed as follows:

• Estate Agent Commission
• Capital Gain Tax
• Electrical and Beetle Certificates
• Bond Cancellation Cost

The Cost of Renovation

As mentioned, as a home owner you will experience many costs which you may have never expected when initially making a purchase of or selling a property. This may leave you in financial debt you never though you would be in due to not budgeting for this additional costs allocated to either buying a new property or selling your existing property. In some cases it may even be more financial cost-effective for you as a home owner to, instead of selling and making a new purchase, renovating your existing property.

Before you make the big decision of selling your property, you should always first consider whether making a few renovations would not be the better, more affordable option. Renovating a property does not have to be a major expensive undertaking as simply repairing or making replacements can completely transform your home into a fresh and more livable space. Hereby, when considering making renovations, focus on the following aspects of your existing property and home:

• Size and design
• Fixtures and appliances
• Cabinets and countertops
• Structural Problems
• Moisture
• Plumbing and electrical
• Heating and ventilation
• Finishes
• Outbuildings, garden and security