Housing and interior financing

Question 1

Basic costs related to buying a house

Answer 1

Deposit - Once off payment made when purchasing a property, usually 10 to 20% of amount borrowed, NOT part of bond

Bond - Loan made to the owner of the property where the property is used as security for a loan

Mortgage - Loan borrowed from the bank to buy the house, mortgage bond is the document

Life insurance - covers the outstanding amount on the loan if the holder dies

Home owners insurance - covers the property itself

Mortgage cover insurance - should bond holder lose his job, etc

Household insurance - covers content inside the propery

Monthly repayments - repayments made to the bank, should not exceed 25 to 30% of monthly income, includes interest

Question 2

Hidden costs related to buying a home

Answer 2

1. Transfer duties - receiver of revenue - tax
2. Transfer fees - attorney - overseeing transfer process of property
3. Bond registration fees - attorney - registering mortgage bond in new owners name
4. Deeds office fees - deeds office - registering mortgage bond and title deed
5. Interim rates - deeds office - interest paid before bond registration if there is a delay
6. Initiation fees - bank - preparation of documents and processing loan application
7. Property rates - municipality - annual property rates and taxes
8. Property valuation fees - bank - assess the property’s value
9. Occupational rent - buyer or seller - who ever stays in house at time of bond registration
10. Administration fees - bank - monthly fee for admin and services fees on loan
11. Moving expenses - removal company - moving household goods to new property
12. Service connection fees - municipality/electricians- water, electricity, stove
13. Variable costs from attorneys - attorneys - FICA fees, electronic institution fees, postage etc
14. Miscellaneous expenses - buying curtains and stuff

Question 3

Requirements for granting a bond

Answer 3

Copy of SA ID
Proof of SARS number
Proof of income - payslips not older than 3 months, bank statements showing stable income
Amount of bond is determined by - size of income (cant be too big a portion)

Question 4

Housing support from government

Answer 4

Consolidation subsidy
Individual subsidy
Project-linked subsidy
Institutional subsidy
Discount benefit scheme
Rural subsidy
Peoples housing subsidy
Subsidies for people with disabilities
People’s housing process
Farm resident subsidies
Finance-linked subsidy programme

Question 5

Who qualifies for a government housing subsidy

Answer 5

SA citizen
21 years or older
Household monthly income must not exceed R3500
No one may have priorly received a subsidy, unless it is a disabled person with a consolidation subsidy
First time home owner
Must be married or with a life time partner or divorced with children/dependents

Question 6

Employer support for housing

Answer 6

Through paying wages
Employees renting company-owned homes at a lower rate
Assistance with home loans, purchasing of building materials, housing subsidies
Helping employees use their pensions as collateral for loans

Question 7

Non-governmental housing programs

Answer 7

Non-profit organisations independent of the state
Reliant on volunteers and donations
Pick up government deficit in providing subsidies
Challenge injustice, open door for possibilities to impoverished
Alleviate development challenges
Fill the ‘delivery gap’
Government criteria is often out of reach
Work with corporate business to create social responsibility
Uplift community