 San Vanani de Villanjeevni and welcome to episode 300 and host Usaman Dua Kumalo. It's the Friday edition of the private property podcast of journals for the first time. Welcome to the family. You're tuned into the only daily property show in South Africa catering to your property needs. It doesn't matter where you are on the property journey whether you're looking to bar to south to build your tenant or your landlord, we're certainly here to make sure that we hold your hand and help you make better informed property decisions and all our regular views on Facebook and Instagram and YouTube and so those of you of course who listen to us on Spotify, Apple podcast or wherever you get your podcast, you're welcome to it. You know how we do. Every single weekday you and I have an appointment at 7 p.m. We're always in conversation with a property expert who helps us make better property decisions and of course one of the great things that we love doing is make sure that we make the public circle bigger share in each other's advice and some of the things that we have picked up on and that's exactly why we're running an incredible competition on our Facebook page where we want to find out from you some of the great property advice that you have picked up while watching the show and of course if you share with us that pinpost on our Facebook page then you stand a chance of walking away with 500 grand in cash every single weekday right here on the podcast and of course if we do call your name then all you have to do to walk away with that cash prize is to drop us a message to claim your prize and if you don't there are many rules over in the money bag for the following day. We're currently sitting at 3500 grand in the money bag. It's a big number and I do hope that whoever wins is indeed watching us this evening and can claim their prize. Of course the other thing that you can look forward to across private parties social media pages are the other great shows that you can tune into every single weekday at 8 p.m. It's a Friday and Chad brings you the home shoppers show where he takes you through explosive parties that you can find on www.privatequality.co.za and that comes to your screens every Monday at the same time and on Tuesdays and Thursdays and Friday night what brings you to the farm and podcast taking all things agriculture and on Wednesdays is the class and takes us through the first time home buyers show but those are some of the great programs that you can look forward to every single weekday at 8 p.m. right here because private parties social media pages do make sure that you follow us across different social media platforms from tiktok facebook instagram twitter linked in youtube recently they're going to follow myself as I'm a doer underscore k on on instagram as well as on twitter and this evening we're looking at a topic that and I know many people who are used to watching the show have heard me speaking about this and I'll share my story but later on we're looking at the hidden costs of home buying a lot of us you know when you buy property for the first time there's certain costs that we're not aware of unfortunately and the reality of not being aware of certain costs is that they can put in a quite a difficult position and want to make sure that we you know make you aware of the different associated costs of buying home and that you're best prepared to meet all those financial obligations and help us get a sense of what these costs are and rather than how much we shouldn't budgeting for those respective costs I'm joined this evening by Tanya Farid who's a real estate broker Tanya good evening and thank you so much for joining us on the show hi summer thank you so much nice to be here it's such a pleasure to have you with us Tanya you know when we look when you look at home buying we know that there's certainly associated costs I think first of all just at the top when when we look at how we should uh how much money we should typically look at uh saving broadly right uh when we're buying a property how should we be looking at the costs associated with acquiring a property because I think with some of the things who sometimes think look it's just the purchase price uh maybe one attorney or whatever the case is how can we almost best financially prepare our minds for the the the massive price tag that comes with buying a property and and that it isn't just one line item that you effectively have to budget for yeah licks and I think um especially when buying a property like you said now you walk into a property it's very emotional so a person the emotion takes over and a person sometimes to get about what's in the background so I think when you're looking at buying a property any client a new home buyer or a secondary home buyer you you would need to look at costs the most general one is the bond in the transfer fee costs that you would need to have available so meaning that is something that you cannot buy without some of the banks at the moment they do actually supply the facility depending on your credit history if it's good or not that they actually do give you um like a hundred and seven percent bond but up to a 1.8 million rand you can get costs included but it just depends on your credibility as well and so you have bond and transfer fees involved um so just to give you a rough idea let's take a figure let's say you're buying I'm taking just over a million so about a million and 20 if you're buying for that you need to be prepared for about 50 000 say about 50 50 1000 bond and transfer fees combined to give you an idea um on on savings so um that's more or less what you would look at you would also if you want to look at a higher price bracket the best way of doing it is most of the banks has a bond calculator available to you as well which you can just go in and you know just calculate basically what is the bond and transfer fees it will come up as a as a as a unit or a combined amount um so that you can also see how much you would need to put away and I see you're already getting some love on our Facebook pages with different viewers watching in and marking the registry uh Michelle Bomeran sending those green hearts sending those green hearts do you continue sending them through absolutely love hearing from you and I also want to find out from your home you know if you bought a property before what was the cost that was associated with uh home buying that you were not aware of that you are obviously having to pay for uh so what cost caught you by surprise when you were buying your property many of you at home know my story of you know not budgeting for bond registration attorneys uh and of course you know being met with two embosses that I had not uh budgeted for but luckily I was able to to honor and pay for but and and we also just know the the danger and I want us to talk about that Tanya the danger of taking on extra credit during that that process where you're buying the property and you know the bond is already granted um you know your home loan facility and of course the the properties in the process of being transferred only for you to find that there's a cost you didn't um you know budget for and then you want to go either take a personal loan or you want to call your bank for them to increase your credit facility but that's some of the dangers of people doing that because seeing people do that and sometimes you know banks end up withdrawing the grant grant that they had given them because effectively they are you know their their financial situation um has changed no look I think that is very important and you know I think as a buyer you need to educate yourself before you buy because you also can't say I didn't know but I think um one of the biggest things is the banks are very much into me so you as a buyer must understand that if you for example I'll I'll talk about it in two ways firstly let's say you buy the property everything's a hundred percent your bond is granted and you decide tomorrow okay great I've got the house I'm now going out and I'm going to go and buy a car for example now it's happened with clients before we what they've done is now they've got car credit which initially they didn't have when they applied for the bond where banks have actually just before or when a client has actually been in a property already they've moved in was drawn that bond because now they've got additional credit um onto the name which wasn't initially there so that's the first thing and then also when when clients are buying they've got to look at a hidden cost and one of the things that that refining is coming up a lot at the moment is where clients are not they don't know that they have to open their utilities with council and they've got to pay a certain amount upfront to have those utilities opened or the account opened and you're looking anything could vary anything it's it's not a set rate it's a specific rate on area or complexes for example you could look anything between a thousand to four thousand grand to open that account and that is what people are often missing especially when it's coming to um you know to to buying a property as well we are taking your questions and comments this evening on the private property podcast with myself is a month or more in conversation for real real estate broker looking at the hidden cost of home buying and I find that from your home if there was any cost that caught you by surprise during your home buying you know stage and when you were buying the property maybe a cost that you didn't budget for but a cost that you absolutely didn't know about you've got to have the same bond transfer costs are a pain and that's quite a huge pain and it's a pain that you absolutely cannot uh uh you there's no way you can avoid that one I think when when we think of all the other costs we you could potentially avoid a cost that's one that you absolutely cannot um avoid at all we've got Michelle Gomeran saying I don't own property but this will definitely be helpful in the future fam absolutely love that Michelle they're already equipping yourself with the right knowledge and insight and we're usually able to be you know best prepared when it's time for you to buy that property now Tanya I think let's look at one and after the break we'll look at some more costs but what's what's one cost that you know viewers at home or just generally clients and fam especially first time home buyers tend to not know about uh tend to not know to budget for when it comes to their home buying journey look I think I think is is general maintenance on a property I think that's one of the biggest things because again you're excited about the home you've got your bond and transfer fees you've got everything ready and you're ready to move in and when you go through a property is really just to screen through it and make sure maybe take a friend or a family member with you it's I always say four eyes or six eyes is better than two um is maintenance on a property that is something that you've got a budget for something that as a home only you can't transfer to someone else um and you also need to make sure what that is and what that involves and I think that's just such a big one taking more questions comments from viewers at home coming back saying I'm traumatized by the thought of transfer upon the cost awa we need compulsory black writing specials on those costs listen that's what I think so that I love it before I think if banks can give us a 50% at least like minimum 50% anything less than 50% we actually have to be honest is not a black Friday special that's just your normal monthly special don't tell us about 10% to 20% give us 50% plus and then we'll consider that a black Friday special and I want us to go for a quick break and see who the lucky winner of that 3500 rounds that is in the money bag is this evening we're gonna come back we're looking at more costs that you used to be budgeting for at home especially if you're going to be buying a home and want to make sure that you're best prepared and best saved up for those associated but in the meantime let's see who the lucky winner this evening is in our competition and the lucky winner of the 3500 rounds this evening is no ninkota no ninkota congratulations to you you stand a chance of walking away with that 3500 rounds I hope that you are watching and of course can claim that price no ninkota you've got until the end of the show to raise your hand and claim that prize going back to our conversation with tiny for reals of real estate broker looking at the hidden costs of home buying and taking your questions and comments at home we've got a comment coming through from um tiattu mouniai saying to reduce most of this cost is to buy from a seller who is registered with VAT uh and let's let's explore that tiny I mean what are the the perks of um or the advantages of buying from a VAT registered vendor and when it comes to you know reducing some of these or potentially reducing some of these costs look you can obviously then claim those costs back you know from from from sales which is good but initially it can bring then your bond and transfer fees it can bring it down which is great so uh it is a good option I can tell you that very few people are doing that at the moment because most of our home buyers are buying in their own names uh as as their main residents so very suddenly are we seeing that at the moment but it is definitely a good good way of buying a property because you can save uh you know of course or reclaim some of the costs and then that's important and I'll tell you now what are other what are some of the other costs that you know viewers of home tend to then forget during that home buying process that catches them off guard that we really need to make sure that if 2022 we have property goals is one of our goals we are certainly we are saving up sufficiently in order for us to be able to meet those financial obligations yeah so so just you know also important when you're buying you must know when the bank gives you a bond the bank will insist in home owner's insurance on that building so it's just any structural damage that happens to that property um you will have to take a you know out home owner's insurance you do not necessarily have to take it out with the bank you can outsource it to other you know insurance companies as well and then see who comes up with the best rate and I encourage you to do that because people I think just normally just go with the bank um but there is other options out there and that's something that our clients never take in consideration because it's it's just normally structured in or they see it when they start or go to sign the documents and they go what insurance is is this so um just keep keep your eyes open regarding that and when we then look at you know saving as much as possible Tanya when it comes to these zero some of these costs what are some of the best ways to try and bring those costs down because I think we know that there's certain costs we can negotiate down what are some of the costs that we can negotiate down and others that you absolutely there's almost no way you can negotiate down whatever the rates you get quoted it's very likely going to be the rates that you have to pay yeah look as you've just mentioned some of those well I mean bond and transfer fees I think we all feel the same about bond and transfer fees so I was very excited when someone mentioned Black Friday on that I'm in um but also you know your rates when it comes to the bank the lending rate it depends on you as a client so I'll encourage any new home buyer do not just approach your own bank because yes it's not something that you've got control over but what you do have control over is you can approach or have someone and like a bond originated for example and approach all the banks for you and then come back with the best options for you with each bank will give you a rate according to your credit score and obviously your history and then you'll go with the best bank you know that gives you the best deal even if it means you've got to move your portfolio you know a 0.5 or 1% is worth doing that then having one option on the table and that's very important I think you know a rate difference you think it's small if it's even a 0.25 but when you actually look at it throughout the loan term you realise just how much of a difference it fundamentally is I recently had one of the home loans you know reviewed the rate reviewed and was able to get a 1% reduction in the you know in the rate and that's quite a huge reduction I think when you look at the loan term and I think now also when we look at the fact that you know interest rates have gone up the report went up by you know 25 points and so we are paying more than what we would have been paying last month for instance so all these little costs certainly do step up and there is a difference so you want to make sure that you save up as much as you can wherever you can when it comes to your home ownership journey now Tanya I want us to look at another cost that you know perhaps people still get caught off guard and that is the the deposit because I think they still different schools of thought when it comes to deposits you know that oftentimes at first time home buyers and you know banks may will or certainly can't extend 100% LTV towards you and will be buying home and so sometimes people think they don't have to say out for a deposit or have that deposit on hand well what are some of the perks of having the deposit even when you know that you very likely get a 100% LTV okay so I think also one of two things if you're putting down a deposit a good deposit when you are securing your offer when buying the property it shows very good intent to the seller number one that you serious on buying that property and it could also you know be the make or break between you and another client for example if there's more than one client you know bidding on the property so that's the first thing and the second thing also is when you're putting down a deposit when you're buying the property you know again the bank looks at it in a very positive way and it also will bring your repayments down on a monthly basis so always encourage people if you can put down the deposit and you're going to pay less on your bond you know over a 20 year period and that's that you know you can't you can't buy that and normally it's better to do that because you might have ending that spending that money on something that is irrelevant where you could have put it in the bond initially so if you do have a deposit put it down especially when it comes to negotiating on buying a property at a good price firstly and then secondly also it will bring your bond repayments down when you're putting down a deposit on buying a property as well and that's just such an important one thing having that amount certainly does give you a bit of liberty to negotiate certain things even with the bank you know negotiating with the interest rate when they see that okay this person has a you know a substantial deposit that they're willing to put down it does help you when it comes to negotiating that interest rate I am of course in conversation with Tanya Farid as a real estate broker as we look at the hidden costs of home buying this evening and of course you as you know we are running that great competition on our Facebook page on the pinned post on our Facebook page we'll now find out from you some of the great probably advice that you have picked up while watching the show we're still waiting for their potential lucky winner of this evening's draw morning quarter to raise their hand if they're watching to claim their price 3,500 grand up to 4 grams if they don't we're going to have a roll over into Monday and of course it's going to go to 4,000 grand I want to read some of the great entries that some of you at home had sent through when entering this competition we've got Apollina on course this thing I learned the importance of living well in case you pass away so that your beneficiaries will not lose any of your properties to the government saying I also love the finance live shows on how to look at and how to look at it when it comes to the property I truly learned a lot in almost all of the shows we are definitely at school absolutely love that and then Uqq Gnuka saying I've learned the importance of maintaining a good credit score and a lot of other lessons and I actually want to touch on that Tanya you know the credit score and the costs that you can potentially have lower or certainly higher based on your credit score because we talk a lot about the importance of maintaining a good credit score and how it affects you to access a home loan facility in particular but we also of course know that when it's good or when it's bad you can sometimes pay more or less on a property let's just look at what having a good or a bad credit score how that fundamentally affects some of the costs that you may encounter when you buy a house I think it comes down to one thing and that is how you manage your accounts because that's what the banks look at you know it doesn't matter you can earn an exceptionally good salary or exceptionally good income but if you manage your income incorrectly meaning you paying your accounts late or your debit orders maybe you didn't have money in that account at that time not necessarily that you don't have the money but you're not managing it correctly the bank sees you as a risk so they will not consider you for a hundred percent loan or let's say a hundred and seven percent loan because they look at how you manage your your your accounts because if you manage your accounts badly why would they want to give you credit you know because you've got to be paying the home loan back so it's exceptionally important that you manage it you know very well we've seen often if clients are looking for a bond and it's between getting 95 or a hundred percent bond they they really look at how you manage manage your finances and that could make or break it in the end more of your questions and comments this evening as we continue our conversation coming through on our Facebook page several people would say we're going to be a property always insist on seeing the rate statement and the levy statement more awful don't show the rates on the listings uh and tanya i'll pose that one to you why do we sometimes see you know some some listings have the rates amount and others simply look i think it just boils down to you know you've got to be transparent and you know good or bad the client needs to know exactly what's going on it could be that maybe the levy is too high so you know they don't want to put it on or the agent is maybe not putting it on because they don't know that could be but i agree with you know with your listeners you have to in this day and age the real estate professional needs to give you a copy they don't need to obviously without the owner's details on because they're not allowed to do that but you can get a copy of the rates account levy account and especially rules and regulations as well because you might have three pets and those are your babies or your children and you're moving into the complex and they need they're not allowed to come into that complex so i do agree it's very important that you see that that you can see what is you know what's related on on marketing and what you're going to be signing is 100 on the doctor that you're not surprised with a 5000 man bill and it was said that it's 2000 land i think that's a very big one i think that's the cost that we don't sometimes think of the levies and the rates because we're we're busy budgeting for all the other things and making sure that we have to be paying for once we have that property and the reality of that is it can easily eat into you know your your your actual money to a point where you may not actually have those funds i think sometimes you know some some levies can go up to even four five thousand for you know a simple cluster and if you had only budgeted let's say up to 2000 at most having that amount being you know double certainly is not going to to go down with you and your budget and going forward tanya as we wrap up our conversation these answers during that home buying stage and how to best prepare themselves especially for those at home who likely have as one of the goals for the new year yeah look i i think it's just to be asked lots of questions make sure that you the person that you're dealing with you get all the info information regarding the property that you're purchasing from a costing perspective and then also saving saving as much as what you can but it's a massive difference when it comes to the interest that you're paying on you know on your bond over that 20 years and you can you can shave off a lot of time off that bond actually but you