|
The Government levies a tax on property transaction called transfer duty. The tax is paid when you buy a property and it is transferred into your name. When you buy vacant land, you will pay transfer duty on the value of the land only, but if you buy and existing home the transfer duty is based on the value of the land and the building. Transfer duty is charged on a sliding scale depending on the price of the property – the more expensive it is, the higher the transfer duty. For individuals the scale is as follows:
Transfer Duties
R500 000.00 = Zero % Transfer Duty
From R500 001.00 to 1 million = R25 000.00 Transfer Duty
Above R1 000 001.00 = R25 000.00 + 8% Transfer Duty.
Example: If the purchase price of the property is 1.5 Million you will pay R25 000.00 + 8% on R500 000.00
A Company/CC./Trust will pay a flat fee of 10%.
If you buy the property in the name of a close corporation, company or a trust, you will be charged a transfer duty of 10% of the purchase price. If you buy a property from a developer who is registered for VAT, you will pay VAT rather than the transfer duty on the purchase price.
There is also other costs involved, when purchasing a home. For more details information click here (link to What costs are involved page) use the calculators below to help you determine the costs associated with the purchase of property and should be taken into account when assessing your affordability.
Click on the following Link:
The tables of ABSA is recommended by us for calculating all costs (Transfer fees, bond costs & other costs) ABSA’s tables also provide breakdowns of the costs and they are very user friendly.
Absa
No Obligation Application - Apply Online Now!
Are you looking for a New Home Loan, Bond Extension, or 2nd Mortgage. Let us help you. We offer a Free and Professional Service. Click Here to contact one of our licensed consultants today.
|
