WHAT YOU NEED TO KNOW WHEN BUYING A HOUSE --Part 1

WHAT YOU NEED TO KNOW WHEN BUYING A HOUSE --Part 1

CHOOSE THE AGENT REGISTERED WITH R.E.I.B (REAL ESTATE INSTITUTE OF BOTSWANA)

Property is the highest valued asset an individual can have under their name, but it still surprise how some people still chose to have this biggest asset handled by amateurs. There are a vast property companies to choose from when looking to buy property with Realtors that are registered with R.E.I.B as professionals in this service industry. Choose an agent with experience in the business that can advise you better and put your interests before commission.

FEES

BOND REGISTRATION FEE

A property Bond is an investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest. It is a debt security to the investor. Bond registration fee is determined by the amount the buyer or the financing institute will be willing to register the bond at or protect their interest at.

TRANSFER DUTY

This is the tax that is levied on the value of the property at hand. Citizens pay 5 % of the amount above P200 000 and Non-citizens pay 5 % of the total purchase price.

CONVEYANCING FEE

This amount is paid to the lawyers; it is determined by the purchase price and the bond amount. Please note that the fees are standard in all law firms and they are regulated by Botswana Law society. There is a table that shows the amount for bond and transfer fees which is the same for all law firms.

ADMINISTRATION FEE

This amount is usually P600 on average it for disbursements, this include all administration costs for printing, telephone, sending and collecting documents.

DEPOSIT

Please note that all Banks are now requiring a 10% deposit for all transaction regardless of the open market value of the property. The banks are now financing 80-90% of the sale price of the property in Gaborone and less in tribal land and greater Gaborone. This means it is now expensive to buy property outside Gaborone as the deposit amount is now higher than the requirement in Gaborone.

To be continued...