BOND REPAYMENT FACTORS
A Bond Factors are to be used when calculating the bond repayments to the Financial Institution.
Subsequent to the redemption, the factor must be applied to the face value in order to determine interest payments as well as the principal amount for each future transaction.
You need to establish the following to find the correct BOND FACTOR:
1: Current interest rate, and 2: Time period for the loan (10 yrs, 20 yrs, etc)
BOND REPAYMENT CALCULATIONS
To calculate a Mortgage bond repayment correctly, you have to make use of the Bond repayment Factor, as described above, for the sepcific interest rate and term of repayments.
Transfer duty is a tax based on the value of the property and is paid to SARS, while the transfer fees cover the costs for transferring the property into the buyer’s name (the conveyancing fees) and for registering a bond.
To calculate the Transfer duties payable by the purchaser of immovable property, these guidelines may be followed.
It generally constitutes the major portion of the costs involved.
The occupational rent clause in an Agreement of Sale is to make sure that the seller will be financially compensated if the buyer moves into a property before registration and transfer occurs, and vice versa.
Occupational rent amount is usually equal to the amount the property can be leased for or one % (percent) is common, but the figure is, in theory, open to negotiation before the contract is signed.
Depending on your ‘split’ with the Agency, this template will assist you to calculate your Professional Fee from two angles:
Example # 1: Knowing the proceeds the Seller requires, to determine Net Commission,
Example # 2: Inserting the % commission you negotiated to determine Net Commission.