I was so confused when I bought my first home

Buying a home, especially a first home, can be exciting and confusing all at once. I remember when I bought my first home, I had absolutely no clue what I was doing. All I knew is I wanted a home and I wanted it fast. I was quite lucky that I bought my first home from a divorcing couple so it was priced right as they wanted to get rid of it and split asap. It was a cute little flat. The first surprise came when I received a phone call from the attorneys to come and pay fees. These were transfer fees so at least I had some idea that I had to pay to get the flat transferred to my name but I had NO idea how much this was going to be. Thank goodness, I had saved some money so I was able to pay the fees. Then I received a  second call from another attorney also wanting me to come and pay fees. Shocked, I went straight to my GM [I was working for a bank] and I asked him why no one told me about all these fees. Poor Graham, by now he was used to me and my endless questions so he asked me to sit down and he explained about bond registration fees and why I had to pay them. By now I was quite upset as I could see all my savings disappearing right in front of me. Anyway I paid and moved in a month or two later. One afternoon I came back home and there was note under my door, it was from the body corporate, they wanted me to pay levies and I was actually in arrears already. I thought nx, they are crazy, I am not paying another cent for anything any longer. What on earth are levies after all? I tore the note and carried on as if I had never seen it. When the chairman finally came and knocked at my door to ask me to pay the levies, I told her straight I was tired of paying for things I knew nothing about and no one told me anything about any levies so I wasn’t paying. To cut the long story short, I eventually started paying the levies and I guess that is how my first book was born. I find that the young adults of today are just as ignorant as I was back then. Many tell me they want to buy a home but when I ask them if they know what the one-off costs of owning a home are, they have no clue.

One-off costs of buying a home

¢  Transfer costs

¢  Bond registration costs

¢  Deposit

¢  Relocation / moving costs

¢  Security e.g. wall, alarm system

¢  Curtains

¢  Other

To find out how much your one-off costs of buying a home are going to be

Visit www.thuthuka-sa.co.za

>Bond Calculators

Make sure that you have saved for your one-off costs otherwise you might struggle to get a home loan and if you do, you may be charged a higher rate of interest or end up paying more monthly as they will capitalise the costs into your home loan. If you need guidance on how to save for one-off costs or a lawyer to help you with transfers, contact me phumelele@thuthuka-sa.co.za

Do you know anyone who is planning to buy a home soon? Share this with them as in the next few weeks, I will be talking about buying a home and the most important considerations when we buy a home