-
-
First Time House Buying Adventures
This post contains the experiences of Chris, a first time home buyer who sent us an account of his experience buying property for the first time:
From what I hear, buying or selling a home can be a stressful time – even for experienced property owners in the best of markets, and even more so when times are tough and the real estate outlook is gloomy.
As a first time buyer, I can tell you it helps to have a real estate agent you can trust. Continue First Time House Buying Adventures »
-
Who Pays The Real Estate Agent?
Don't fight about who pays!
Nobody wants to, but somebody has to – pay the real estate agent, that is. So, exactly who’s responsible for paying the realtor’s commission?
No, this is not a silly question. The average person buys and sells property only once or twice in their lives. So, how would you know without asking? More of Who Pays The Real Estate Agent? »
-
Hello world!
Welcome to the new Huis-Huis website! We hope that the real estate related information in these pages will be of as much help to you as the thousands of visitors who used to visit the old huis-huis.co.za website.
Uncover the rest of Hello world! »
-
Capital Gains Tax (CGT)
Capital Gains Tax (CGT) was introduced in South Africa on 1 October 2001. CGT is a tax on the profits realized on the sale of assets such as immovable property.
Exemptions
In the hands of an individual the first R10 000 capital gain per year is not taxed. Additionally, in the case of a primary residence, the first R1 000 000 capital gain or loss is exempted from CGT. This exemption does not apply on a second property.
Capital Gains Tax On Individuals
In cases where the capital gain exceeds these limits, individuals should include 25% of the net gain from the sale in their annual income. Tax is then levied at the applicable income tax scale. The effective CG tax rate should then be less than 10% of the net capital gain.
Capital Gains Tax On Companies
For companies, close corporations and trusts 50% of the net gain is used to calculate the tax payable. For these entities there is no R1 000 000 tax exemption.
Deductions
Remember, you only pay tax on the capital gain or profit you make, not on the total proceeds from the sale. The cost of buying, improving and maintaining the property can be deducted from the amount you realize through the sale. Accurate records of these costs are very important.
Capital Gains Tax Advice
The implications of capital gains tax on the purchase or sale of a property can be complex and it is advisable to seek professional advice from an attorney, accountant or financial adviser.
-
Buyer Qualify
Buyer Qualification is of great importance to buyers, sellers and real estate agents alike. The buyer qualification process will remove the uncertainty for all the parties involved in a house sale.
The buyer needs to know how much he can spend and knock out a clear idea of what he is looking for. The seller needs to know that the sale won’t fall through and effectively take his house out of the market for a period of time. The real estate agent needs to be sure that the buyer and seller is a probable fit where the property is concerned, because he only gets paid when the property finally gets transferred. See the rest of Buyer Qualify »
-
Discussion