By Tersia de Beer | Property practitioner in Kroonstad, Africa Estate
The bond instalment is not what a house costs you each month. Many buyers budget only for the bond, then get a fright the first winter. In Kroonstad there are five costs that come back every month or every year. Know them before you make an offer.
1. The municipal account
Property rates, water, electricity, sewerage and refuse. It varies widely from house to house, depending on the valuation and the use. Ask the seller for the last three accounts: it is the best guide you can get.
2. Insurance
The bank requires building insurance on a bonded home. Kroonstad gets hail: ask your insurer whether the roof's type and age affect the premium.
3. Maintenance
Every house asks for something each year: paint, the roof, the pool, the garden, the geyser. An older house on a big stand asks for more. Put something aside every month, and the big bill does not arrive as a shock.
4. Levies in a townhouse
In a sectional title complex you pay a monthly levy for the common areas. Ask for the body corporate's finances and reserve fund before you buy: an empty reserve fund means a special levy later.
5. Power and water when the town's fail
An inverter's batteries and a borehole's pump also cost money to maintain. But they carry you on the days the town is without.
- Ask for the last three municipal accounts.
- Get an insurance quote before you sign.
- Budget monthly for maintenance.
- For a townhouse: read the finances.
Before you make an offer
Ask the seller or the agent for a simple monthly summary: bond, municipal account, insurance and an amount for maintenance. Put it next to your salary and your other expenses. If the total is comfortable, make your offer with confidence. If it pinches, it is better to know now than after transfer.
I can get you the municipal accounts and levies of any home I sell before you make an offer. See homes in Kroonstad or ask me.
Tags:kroonstad · buying-a-house · budget · free-state
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