Selling your home. It's easier than you think. International. Strange as it may sound, Kotzé notes, it is also important for cash buyers to keep an eye on their credit record. This article will discuss the various cost items that typically affects a property transaction in South Africa. Save for the things you want until you can pay cash for them. R 309 000 . Needing an urgent quick cash sale for your house and home in South Africa. 2. Cash Converters is the leader in the buying and selling of quality pre-owned goods in South Africa and has been since 1994. Purchasing a house should not be taken lightly – it’s a massive financial commitment and administrative undertaking. Buying off-plan property has become a popular choice in South Africa. Buying a new home off-plan directly from a developer before it’s built means you don’t pay any transfer duties for taking ownership of the property. Can I sell my house immediately or even thinking of selling your property in the near future, we can help! 4. This is the prevailing advice these days as many SA households wrestle with the ever-increasing cost of living. Even if you can buy a house outright, forgoing a bond may not be the smartest financial choice. This information has not been provided to meet the individual requirements of a specific person and LegalWise insists that legal advice be obtained to … Because I still possess a lot of energy I want to start a business of my own, and buy a house cash – maybe for around R500 000. If you are looking for your dream property in South Africa, you have come to the right place! About 20% of homes in the U.S. are paid for in cash. Many buyers feel buying a home for cash is better than taking on a home loan, but this is not always the case. You could be saving less than your cash might have earned had you taken out a bond and invested it on the stock market. Search for real estate in South Africa and find real estate listings in South Africa. All Rights Reserved. Just the other week my agent got a bargain piece of development land at R1.2M asking price. We can eliminate that stress and give you the peace of mind that comes with knowing your house hassles are completely done – without having to fix it up, show it, wait for buyer financing, or evict the tenants. This guide explains the process of buying cars in South Africa and how the process of vehicle registration in South Africa works. The example used is a R2200 000 house. A great opportunity to buy a very affordable 3-bedroom family house in a new extension of Baillie Park, Potchefstroom. Final Word. Thereafter, transfer of the property for a cash deal can be as quick as 6 weeks, whereas transfer on a property with a bond is usually about 3 months. Cash is good, and credit is bad. But you shouldn't skip aspects of the due diligence process that lenders often require. ... Our home buying service is free to all South Africa home owners and there are no hidden costs. Generally, a bank guarantee or a cash deposit for the balance of the purchase price is required to be made into the Conveyancer’s Trust account at the time agreed in the Offer to Purchase. A property can take months to sell, and if you need cash urgently, borrowing against the value of your home is usually tricky unless you have a bond.”. It is a fact that all sellers would prefer to sell to the cash buyer. “A cash purchase of course eliminates the need to pay thousands of rands in interest on a home loan over 20 years, and cuts out the bond registration fee, although you will still have to pay transfer duty and legal fees. We buy houses for cash giving you a quick and hassle-free home sale on the spot. We are here to give impartial, objective advice about every aspect of buying property in South Africa. Below, we have the list of advantages to paying for real estate with cash. Whereas closing the deal can take around 10 to 15 days if the home is purchased using a home loan, a cash purchase can usually be closed in a few days. The house is … Every institute at which you apply will provide you with a … This article will discuss the various cost items that typically affects a property transaction in South Africa. Whether you already have the money in a savings account, or sitting in various stocks that you’ll need to withdraw from, ensure you have a plan for acquiring the required funds. So, regardless of how bad things may get financially, you are ensured a place to lay your head at night. If you are seriously considering buying property in South Africa then you’ll need to understand South Africa’s property finance markets. If you have a home loan, you will suffer a loss only on the portion of the purchase price you paid as a deposit and have paid off since.”, In short, he says, paying all cash will work for some people but not for others, and the best compromise is usually to pay a large deposit to reduce the size of the home loan needed and thus the interest due, while still keeping some cash free for emergencies and other investments. However, buying a home with cash could stretch you financially, making it hard to deal with all the additional expenses of home purchase. For instance, building your own house in South Africa's highly congested or urban areas is more costly compared to less congested places; therefore, it is necessary to come up with a realistic budget based on the location of the project. Assistance when buying a house in South Africa There are currently no home buying schemes available to foreign citizens living in South Africa, but government assistance in the form of a one-off grant is available for South African citizens with low earnings. 3 tips for getting a good home loan interest rate, Take these steps now if you plan on buying in 2018. Not having a bond could also make it easier for creditors to seize your home should you find yourself seriously in debt in the future. But, depending on the state of the stock market, Viljoen also notes that saving on home-loan interest by paying cash might not be financially prudent. Everywhere you turn, you hear how bad it is to carry debt. Selling a home bought with cash could also pose a problem if the owner stretched a lot financially to buy it, Viljoen says. ... House plans also help our assessor to value the property (based on the number and size of the rooms, for example). In South Africa, the Western Cape province continues to outperform all other areas, with Cape Town remaining the most lucrative city in the country. Obviously, you will be in a better position if you’re a cash … Paying cash for a home offers some great benefits if you are able to swing the initial cost. He contributes to shared expenses on a pro-rate basis and is governed by a set of management and house rules. Knowing the “ins and outs” of the property before making an offer can prevent an emotionally inflated purchase price and save valuable finances towards these hidden costs. Find property in South Africa with Rightmove.co.uk - the UK's number one property website. They also make the home buying process easier by offering a range of tools. The strength of its housing market and house price inflation, which has risen by over 10.35%, make the Mother City an attractive property investment destination for investors. Send us your details and we will make you a cash offer within 48 hours Terms and Conditions    Privacy Policy     Promotion of Access to Information, The ooba group subsidiaries Property Protector Financial Services and ooba Administration Services are Authorised Financial Services Providers (FSP No’s: 216 & 46293). Process of Buying a House in South Africa. The information contained on this website is aimed at providing members of the public with guidance on the law in South Africa. This puts you in a strong negotiating position. Foreigners who have temporary work permits may be granted more than half of the purchase price, but the loan amount will still depend … Get cash offer. Buying a house with cash will make you feel like a million bucks. However, he says, buying a property for cash will probably mean that you are tying up most of your capital in one asset and that you could lose the option of being able to access it in an emergency or investing it more profitably. Instead of taking a month to close for loan underwriting and approval, buying a house with cash can take just a few days. “The bank may offer you a ‘payment holiday’ on your bond instalments, allowing you to get back on your feet. Paying cash also has tax implications – in most cases, bond interest payments are tax-deductible. You can easily make a ridiculously low offer as a cash buyer and have it accepted. South African exchange control regulations determine the extent to which foreign buyers can borrow money locally to fund the purchase. Incomplete house in mankweng for sale - cash buyers only! If you need cash for some other purchase or emergency, you may not have the money available to you if it is tied up in your property. Sell Your House This Week We Buy Johannesburg Houses Fast! Picture this: You find the perfect house, and buy it outright. © 2021 ooba (Pty) Ltd. All rights reserved. It’s important to have a realistic timeline when purchasing a home. 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