We recently had the opportunity of marketing eight bachelor flats in the same complex for an owner.
Initially, the owner wanted to sell the flats as a whole but, eventually, we managed to show him the advantages of selling them individually.
What was interesting was that a few of them were sold two at a time to the same buyer.
It made us realise what a substantial saving can be made if you buy them on a single offer to purchase rather than as two separate deals.
Taking a price of say R300 000, the cost of registering each one as an individual sale would be R31 595 x 2 = R63 190 with a 100 percent bond.
Buying the two flats on one offer to purchase and registering a single bond of R600 000, the bond costs would be only R33 476 in total.
This is a massive saving R29 714.
On top of which you would only be paying one monthly bond service fee.
This can be done for a purchase price of up to R1-million when transfer duty starts to kick in.
Even then, it is worth doing the sums.
Two transfers and bonds of R600 000 for example will cost R33 476 x 2 = R66 952.
A single transfer and bond at R1.2 million would only cost R59 718.
You will also enjoy huge savings on the monthly bond service fees.
If you need property related advice you are welcome to drop me an email at mike@platinumglobal.co.za
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.