You have finally managed to find your dream house and want to make an offer, but you are concerned about your budget and everyone keeps telling you that with a new house there are so many additional costs you need to take into account. So what should you realistically be budgeting for?
Broadly speaking there are "once off costs" and "regular monthly costs" that need to be considered.
Conveyancing fees are the first “once off cost” item on the list. The seller usually nominates the transferring attorney and the bank will appoint the bond attorney. Accordingly, there will be two separate accounts payable which will fall to the buyer to settle. Apart from the fees for registering the transfer and the bond, which are calculated according to a prescribed sliding, the following items are also included in the accounts of the conveyancers:
Looking at other "once off costs" you should take into account the facts and your special and personal circumstances and needs. These costs, depending on your circumstances, could include:
“Regular monthly costs” should also be carefully considered as these can have a tremendous impact on your monthly cash flow. Some of the most important monthly expenses are:
When you are ready to make an offer on a property, contact your attorney to discuss the offer you want to present to the seller. Your attorney can assist you with drafting your offer to purchase, provide you with an estimation of the conveyancing fees and explain the different cost items you may face. Also inquire from your attorney whether you may need to update your Will with the details of the new property that you will be acquiring. Then, armed with a well-prepared budget and your offer to purchase, it is time to make your dream a reality.
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