BUYING PROPERTY: IGNORANCE OF THE ANCILLARY COSTS A COMMON DERAILER OF TRANSACTIONS

In recent workshop talks and interviews for the property press and social media, Rowan Alexander, Director of Alexander Swart Property, covered a wide variety of pitfalls which lie in wait for the inexperienced or wrongly informed property buyer. Most of these are matters on which it is quite easy to make a mistake. Alexander commented that the most common error frequently encountered, is the simple fact that MANY buyers are ignorant, or seriously underestimate the costs of their property transaction. They often do not request estimates of outlays they will be expected to pay. In particular, many buyers do not enquire about the property transfer fee and bond registration costs and are shocked to learn that it can amount to around 8% of the sale price.

"The best advice any estate agent can give a new client unaccustomed to property dealing, is to ask for pro forma accounts and quotations on every aspect of the finance raising and buying process," he says. "Any new participant in property transactions will have much to learn. A novice should be well informed before taking any steps forward. It can be heart-breaking to discover that a sale cannot go ahead simply because the buyer did not understand the ancillary costs involved."

For further information please contact Rowan Alexander on mail : rowan@asproperty.co.za or by cellphone  082 581 3116.