Page 14 - Selling your Home - The CommFREE guide to all you need to know
P. 14
SELLING YOUR PROPERTY:
ARE YOU AWARE OF ALL
THE COSTS INVOLVED?
The costs of selling property in South Africa can be significant. Calculate these costs
before the decision about selling your property is finalised so you know how much
will be left over in your bank account. If you are selling property, these are the costs
to consider:
A b u d g e t i s t e l l i n g y o u r
1. The estate agent’s commission on the
sale of the house (if you are not selling m o n e y w h e r e t o g o
through CommFREE). The fee is usually i n s t e a d o f w o n d e r i n g
between 5% and 8% of the property selling w h e r e i t w e n t
price, plus VAT of 14%. If you are selling
property privately then there would be no
cancelling the bond then you should let
estate agent’s commission but you would
have upfront marketing costs. your bank know in advance, in writing
(and continue notifying the bank every 3
months until your property is sold).
2. Costs for electrical, beetle (if you have a Otherwise the bank may decide to charge
coastal property), gas (if relevant) and you a fee for cancelling your bond early.
plumbing compliance certificates. These This fee is calculated as 3 months’ interest,
certificates each cost R600 – R900, but if which can be a substantial sum to pay
problems are discovered then you are also unnecessarily.
liable to pay for the necessary work to be
done before the certificate can be issued.
5. Bond cancellation fee, if applicable. This
is charged by the attorneys if you cancel
3. Capital gains tax if you sell your property your bond after selling your property. It is
at a profit (the first R1 500 000 of the profit usually about R2000.
made on the sale of a “primary residence”
is not taxed if the house was registered in
6. Upfront contribution towards municipal
the name of a natural person). The capital
rates and taxes (or levies), usually
gains tax rate usually works out to 11%.
equivalent to about 4 months’ payments,
to get a rates and taxes clearance
4. Early bond cancellation (penalty) fees. If certificate. If your property transfers
you are intending selling property and earlier than this you might get a refund.
14 Title of the book
14
The CommFREE Guide to Selling your Home
