 Win your share of 5 million rand get a home loan and get one entry open a netbank account Move your salary and you'll get another 10 entries simply dial star 120 star 762 hash to enter make things happen netbank Buying a home is one of the most important steps in your life Whether it's your first home or an upgrade therefore being informed on some of the extra costs involved over and above the purchase price Can make a huge difference and make your home buying experience much easier We're joined by to my can we see head of sales and client management at netbank home loans welcome to the love to thank you Bonnie so Tim What are the extra costs do buyers need to be aware of over and above the purchase price? So Bonnie one of the common mistakes that consumers make is they only consider the cost of the bond and the affordability and Not the extra cost that we are going to talk about today And the extra cost is really the cost of acquisition as well as the cost of maintenance Now the cost of acquisition is the cost that you would incur to have the property transferred into your name So there are lawyers involved so you need to pay the registration costs for your property to be registered at the deeds office You would also need to pay the initiation fee to the bank for them to set up the accounts for you and to maintain the account and Our thirdly you have to pay transfer costs, which is in essence a tax to the government So the first 750,000 Rand of the property value is exempt from that tax And the balance in that you pay transfer duties on if you are building a new place or buying A house that is being built by a developer those costs are either voided or inclusive in the price of The the entire unit yeah, then the second cost around the maintenance Now that's the interesting one because that's an ongoing cost that you pay as long as you can Continue to have the house and live in it. So that's your cost of your levies if you're in a sectional title Which is comprises of your maintenance cost in the garden the security you pay and some insurance Then the other cost is your rates and taxes in a standalone situation you'd be paying your rates and taxes and Obviously, you then have the flexibility on what to pay for security and the cost of gardening, etc Yeah, so those are two main costs that you need to contend with As long as you are a Homeowner you'd always have those two costs and that's over and above your boundary payments Wow, Tim How can one calculate these costs? So Bonnie what we've understood over the last couple of years is that clients really battle with understanding exactly all the cost that's involved in actually Maintaining and paying off their monthly installment. So we've designed a an app called instant bond indicator it's on our website and Essentially, that's a 14-field application where you put in the cost of the property and your personal details and will make a real-time scoring a Real-time call to credit bureaus to give you a sense of your credit health as well as your affordability And we will then play back to your results that would include not only the cost of your monthly repayments on a property but also the cost of the transfer that you pay and The registration that you're likely to be faced with and that will give you a really good sense of exactly What cost in total you are you're expected to be informed? Well, that sounds really helpful. I'll definitely be getting that app great Thank you so much. We're very well informed. Thank you, Tim. Thank you Consult your bank to make sure you fully understand all the costs associated with buying a home And that those unexpected hidden costs won't come back to haunt you for more information visit netbank.co.z a forward slash home loans Win your share of 5 million rand get a home loan and get one entry open a netbank account Move your salary and you'll get another 10 entries simply dial star 120 star 762 hash to enter make things happen netbank