Are you considering buying a house in Port Elizabeth? It’s an exciting venture, but it comes with its own set of considerations and responsibilities. In this guide, we’ll explore what you should expect when buying a house in Port Elizabeth to help you navigate the process smoothly.
1. Do a Proper Inspection of the Property
Most properties sold by owners via estate agents in Port Elizabeth are sold “voetstoots.” But what does that mean? It means that you purchase the property just as you see it on the day of viewing. You have the responsibility to conduct a thorough inspection of both the residence and the grounds. Here’s what you should inspect:
- The roof’s condition.
- Plumbing and water pressure.
- Functionality of windows and window fittings.
- Proper functioning of toilets and showers.
- Locks on all doors.
- Working condition of cupboards.
- Check for dampness, mildew, or rot by inspecting curtains and cupboards.
Additionally, obtain a copy of the title deed and look for any restrictive conditions. Visit the local council to confirm if the property’s zoning aligns with your intended purpose.
Remember, purchasing “voetstoots” means you buy the property regardless of whether it has approved municipal building plans. Ask the agent for these plans, and if the seller doesn’t have them, the local council should.
2. Be Aware of Expenses
When buying a house, there are several expenses to consider:
- If you’re currently renting, there may be costs associated with canceling your lease agreement.
- Bond originator services are usually free if you require bond finance.
- Transfer costs handled by the transfer attorney.
- Bond registration costs if you need financing.
- Transfer duty tax for properties over R1,000,000.00, collected by the transfer attorney.
- Rates and taxes collected in advance by transfer attorneys.
- Levies if purchasing a sectional title unit or property in a Home Owner’s Association, also collected in advance.
To estimate your transfer costs, you can use a transfer calculator or consult with a legal professional for more accurate figures.
3. Read the Contract Before Signing
Never rush into signing a contract. Most contracts in Port Elizabeth are drafted in straightforward language, but it’s essential to read every clause. If you find any terms confusing, seek advice from legal experts. Once you’ve signed the contract, you’re bound by its terms, and changes require consent from all parties involved.
4. Understand Bond Finance
If you need financing to purchase a property, consider these steps:
- Contact a bond originator to pre-qualify you. This helps determine what you can afford based on your financial situation.
- Your offer’s acceptance initiates the bond originator’s work to secure the best interest rate and offer from your bank or other financial institutions.
Working with a bond originator can help you navigate the complexities of securing financing for your new home.
In conclusion, buying a house in Port Elizabeth can be a fulfilling experience, but it’s essential to be well-prepared. Conduct thorough property inspections, understand the expenses involved, read contracts carefully, and consider bond finance options. By being informed and proactive, you can make the process of buying a house in Port Elizabeth a smooth and successful one.
