Hey hey! It’s us. Your Wednesday, Thursday, Friday home ownership companions.
One of the most common mistakes home buyers make, is focusing only on the cost of bond payments, when deciding if they can afford a home and not the extra costs that come with maintaining the home. The cost of maintenance is a very real cost and it’s often the factor that makes home ownership difficult to sustain, if not well managed.
Consider this: First, you pay the cost to acquire your property, which includes transfer duty and registration at the Deeds Office, and the initiation fee to the bank (R5 989). Second, the cost of maintenance starts to kick in - the first of which is actually a minor fee of R57 that the bank charges to maintain the home loan account. We don’t really look at it, but keep reading, it all adds up.
What are more major costs you ask? Think about water, electricity and rates. If your property is in a sectional title, your levies cost cover these costs. If you are not, then you will pay all of those. In total, your maintenance cost could be as much as 20% to 30% of your bond repayment cost. So, if your bond repayment is R10,000 per month, factor in an additional R2,5k to R3k on water, electricity, levy and rates. At least.
Your ability to maintain your property is key to preserving and increasing its value in the long run, so it’s important for all aspirating homeowners to budget for this cost. Don’t say we didn’t tell you.
Now,how can we help you with this cost? Just by applying for your home loan via MortgageMarket, we give you our MoneyGuarantee offer of between R5k to R25k, because we put people before profits!
Thanks for joining us friends, see you again soon for another #WTF update, on us.
The MortgageMarket Team