Hidden costs
The hidden costs involved in buying property:
The purchase price is not the only figure to look at when making a decision to buy a
property.
There are several other figures connected to the purchase price that any purchaser should
have in his/her disposal before signing the Deed of Sale/Offer to Purchase. Normally these
costs referred to as a hidden costs. These costs are legal and fixed for any purchase
price.
These are:
- Transfer costs
- Transfer Duty
- Stamp Duty
- Lawyer (conveyancer's) fees
- VAT on conveyancer's fees
- Stamps
- Bond costs are paid to the
conveyancer's office
If the purchaser has to register
a bond on the property (a loan from the bank or other financial institution), then the
following hidden costs will be charged by the lawyer representing concerned financial
institution:
- Stamp Duty
- Lawyer's fees
- VAT on Lawyer's fees
- Stamps
These fees are paid to the bank/financial institution's lawyers.
Therefore when purchasing a house every buyer should consider the following figures:
-
Purchase price
-
Transfer costs
-
Bond (loan) costs