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Consumer Studies > Housing and Interior > Flashcards

Housing and Interior Flashcards

1
Q

three different housing options

A
  1. renting
  2. building
  3. buying
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2
Q

factors to consider before renting, building or buying

A
  • lifestyle
  • size of family
  • stage in life cycle
  • financial circumstances
  • location of property
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3
Q

person who rents a house or flat

A

lessee or tenant

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4
Q

owner who lets out property

A

lessor or landlord

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5
Q

rent

A

a fixed amount of money paid every month by the tenant to the landlord in exchange for the right to live on the property

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6
Q

lease

A

an agreement reached between owner and tenant

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7
Q

where must a newly built house be registered?

A

NHBRC

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8
Q

NHBRC

A

National Home Builders Registration Council

ensures proper building standards and responsible behaviour by contractors involved

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9
Q

two types of housing

A
  1. full title property

2. sectional title property

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10
Q

full title property

A

buyer of property becomes legal owner of the full property (full = plot and structures on it)

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11
Q

sectional title property

A

buyer of property becomes legal owner of a section in a housing complex, communal areas are owned jointly

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12
Q

advantages of renting

A
  1. more affordable in shot term
  2. tenants don’t pay insurance or rates on property
  3. tenants are not responsible for maintenance
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13
Q

disadvantages of renting

A
  1. lease renewal is not guaranteed
  2. tenants are not allowed to make structural changes
  3. owner must approve any changes tenants want to make
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14
Q

advantages of building a house

A
  1. house can be designed to owners needs and taste
  2. fittings and appliances are new
  3. new houses are often built in developing areas
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15
Q

disadvantages of building a house

A
  1. could cost more than buying
  2. delayed construction in an inconvenience
  3. property rates and service charges must be paid to local authorities
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16
Q

advantages of buying a full title property

A
  1. buyer becomes legal owner of entire property
  2. property can be sold for a profit
  3. it’s quieter and more private than sectional title
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17
Q

disadvantages of full title property

A
  1. mortgage payments are more expensive than rent
  2. owner is responsible for maintenance and payment of property rates and service charges
  3. if property is sold, capital gains tax must be paid on profit
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18
Q

advantages of sectional title property

A
  1. it is safer than than a full title property with better security
  2. you can use communal facilities
  3. maintenance costs are less than full title property
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19
Q

disadvantages of sectional title property

A
  1. owner must comply with decisions of body corporate
  2. less privacy
  3. owner must pay monthly levy to cover property rates and services, insurance and maintenance
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20
Q

a deposit

A
  • paid by the tenant before the property is occupied
  • usually equals one month’s rent
  • protects the owner should the tenant fail to pay rents or cause damage to the property
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21
Q

costs so consider when building a house

A
  1. plot: purchase price, transfer duties
  2. labour: architect and builder(s)
  3. materials: everything needed
  4. municipal fees: building plan must be submitted for approval, fee is charged
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22
Q

a mortgage or home loan

A

money borrowed from the bank to buy a property, paid off over an agreed period in monthly installments with interest to the bank

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23
Q

financial responsibilities of home owners (3)

A
  1. accounts for water, electricity, refuse removal, sewerage
  2. maintenance
  3. mortgage payments
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24
Q

general content of a lease (5)

A
  1. name, signature, address of tenant and landlord
  2. date of signing and occupation
  3. rent that must be paid
  4. notice period to terminate lease
  5. rules about maintenance and behaviour
25
Q

a building contract

A

written agreement between landowner and builder, listing:

  • terms and conditions,
  • where building will take place
  • specific price
  • agreed specifications
26
Q

offer to purchase

A

written offer to owner of property

27
Q

deed of sale

A

offer to purchase after seller accepts and signs it

28
Q

comprehensive homeowners insurance

A

short-term insurance that protects house against structural damage from fire, floods, natural disease

29
Q

household insurance

A

covers contents of a house against fire and theft

30
Q

interest

A

amount of money bank charges to to lend the loan amount to the buyer

31
Q

repo rate

A

interest rate determined by Reserve Bank

32
Q

transfer costs

A

legal fees paid when property is purchased and and rigthts are transferred from seller to buyer

33
Q

transfer duties

A

state taxes payable when ownership of property is transferred to buyer
paid when:
a) property value is R600 00 or less
b) new property is bought from developer

34
Q

conveyancer

A

property lawyer

35
Q

attorney fees

A

payment made to conveyancer for overseeing transfer process

36
Q

deeds office fees

A

paid to deeds office for registration of mortgage loan and title deeds

37
Q

mortgage registration fee

A

paid to conveyancer to register mortgage in name of the buyer

38
Q

interim interests

A

interest payable on the mortgage before it has been registered

39
Q

bank initiation fee

A

once-off bank charge for processing mortgage application

40
Q

property valuation fee

A

paid to bank fro valuation of property

41
Q

property tax

A

based on market value of property used to fund municipal services

42
Q

occupational rent

A

paid to seller if buyer occupies property before mortgage has been registered

43
Q

administration fees

A

monthly fee on loans for residential property paid to bank

44
Q

utility connection deposit

A

deposit paid to municipality for connecting services such as water and electricity

45
Q

bank requirements for granting a home loan (5)

A
  1. application for home loan
  2. certified copy of offer to purchase
  3. ID or passport
  4. proof of steady income
  5. copy of bank statements
46
Q

housing subsidy

A

once-off grant paid to lower income group buyer who is buying residential property for the first time
paid to bank by government

47
Q

requirements for government subsidy (5)

A
  1. SA citizen
  2. +18 years old
  3. total household income should be less than R3500
  4. no one in household may have received one before
  5. applicant may not have owned a house previously
48
Q

individual subsidy

A
  • lower income household buying house for first time
  • can only be used once
  • 2 types:
    1) non-credit-linked subsidy
    2) credit-linked subsidy
49
Q

non-credit-linked subsidy

A

buyer uses own savings + subsidy to buy house

50
Q

credit-linked subsidy

A

buyer does not have enough savings and has to take out a loan to add to subsidy to buy a house

51
Q

consolidation subsidy

A

supplementary subsidy for people for people who have already received a subsidy and are living on a serviced site and want to build a house

52
Q

institutional subsidy

A

paid to non-profit organisations offering rental accommodation to people from lower income groups

53
Q

enhanced people’s housing process (EPHP)

A

available to organised groups, communities and households wanting to build their own houses

54
Q

rural subsidy

A

given to people who do not have formal tenure rights to the land where they live, it is available on a project-only basis

55
Q

project-linked subsidy

A

can be used to buy a house and the plot on which it stands in an approved municipal housing project, paid directly to the municipality

56
Q

discount benefit scheme

A

encourages tenants of state-financed rental housing to buy their own house

57
Q

relocation assistance

A

offers assistance to homeowners who can’t pay their home loans
they are helped to buy a more affordable house

58
Q

government employee housing subsidy

A

granted to employees in government service who work for the gov full time, make a contribution to a pension fund and occupy the house (don’t rent it out)

59
Q

3 ways that employers can offer assistance to employees

A
  1. arrange home loans and housing subsidies
  2. purchase all building materials
  3. provide accommodation to employees at lower rent

Consumer Studies (14 decks)

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