Selling your home can be as stressful as buying a new one.

Your selling options

There are two options: selling privately or with the assistance of a competent estate agent. For more information regarding estate agents and their rights and obligations, please visit the Estate Agency Affairs Board website on www.eaab.org.za

The importance of asking the right price

This is certainly the most important aspect of selling your home. Over-price it and the chances are you will delay the sale, under-price it and you will regret selling too cheaply. Most buyer interest occurs when your property initially goes on the market.

Current economic and market conditions, the location and size of the property, the accommodation and the features of the property offers normally determine the actual selling price. You will get a good idea of the correct price by looking at what similar properties are fetching in your area. Do not be misled by the asking prices in the area.

Remember that the seller usually sets the price; the buyer usually sets the value!

Make sure that your price includes all the extras, such as fixtures and fittings.

Electrical compliance certificates

By law, an electrical compliance certificate has to be in the possession of every new purchaser of a property to confirm that the property’s electrical system complies with safety regulations. The seller is obligated to supply it to the buyer at the seller’s expense prior to registration of transfer. It is not the agent’s responsibility to obtain it. In certain areas (mainly coastal regions), the seller also has to supply the buyer with an Entomologist’s Certificate confirming that the property is free of woodborer or termite infestation.

Tip: Complete all your documents in full. Do not sign any incomplete documents and question anything that you do not understand fully - you have the right to do that.

Remember by choosing us for a loan, you will get professional advice to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

The economic downturn brought an end to the double digit growth the property market experienced over the past few years. While it might not be as easy to make a quick buck as a few years ago, buying a property is still a good long-term investment. Investing in property, like investing in shares, is the best way to make sure your money beats the eroding effect of inflation in the long run.

It is important to note that when you rent out a property to a tenant, the Receiver of Revenue will consider the rent received as income and it will be included as “gross income” on your tax form. Gross income is usually a basic form of income like a salary. Do not omit your rental income from your tax form – the taxman can easily pick up undeclared rental income by contacting the deeds office.

On the positive side, you will be allowed to deduct expenses incurred in order to generate rental income from the amount you receive as income. This will include expenses like water and electricity (if you pay the bill), rates and taxes, insurance, agent fees, body corporate levies and certain household expenses. It might be a good idea to stipulate these expenses in the rental contract as this will indicate the expenses were incurred as part of the lease. Always keep invoices and statements in a safe place – the South African Revenue Service require that you keep these records for five years.

While the taxman considers repairs to your investment property as tax deductible expenses, improvements are considered of a capital nature and will therefore not be tax deductible. The general rule is that if the expense is incurred to restore the property to its original condition, it will be tax deductible. Expenses incurred to upgrade your home, will not be deductible.

Something that you might not be aware of is that if your investment property is covered by a bond, your interest payments to the bank will also be tax deductible. The capital part of your payment may not be subtracted though. Your bank will be able to supply you with an amortisation table that will indicate which part of your installment is interest on the bond.

By choosing Mortgage Plus for a loan, you will get professional advice to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za