Financial responsibilities for rent, build, buy

Question 1

State 4 financial responsibilities of a tenant

Answer 1

1. Paying a deposit on or before occupation
2. Paying rent on time
3. water and elec if not included in the lease
4. damages caused during occupation

Question 2

what are the main components contributing towards the cost of building(4)

Answer 2

erf/plot: purchase price and transfer duties
labour: architect and builder
materials: all building materials
municipal fees: building plan must be submitted to the municipality for approval and a fee is charged

Question 3

what percentage is advisable to add to your estimated budget to cover unforeseen expenditures

Answer 3

10%

Question 4

mortgage or home loan/bond meaning

Answer 4

money borrowed from a bank to buy property. The loan is paid off over an agreed period in monthly payments with interest

Question 5

name 8 financial responsibilities a homeowner should meet

Answer 5

1. accounts for water, elec, refuse removal and sewerage payable every month
2. payment of rates and service charges to the municipality
3. security coast for an alarm and armed response
4. comprehensive homeowner’s insurance (against fire, floods, other natural disasters)=structure
5. maintenance
6. household insurance (contents of house)
7. mortgage payments
8. mortgage protection insurance (life insurance)

Question 6

sectional title owners pay a monthly levy, what does the levy cover (8)

Answer 6

1. property tax
2. service fees
3. insurance on the buildings
4. maintenance to the buildings
5. maintenance of common property
6. wages and salaries of the staff
7. water and electricity costs for common prop
8. complex security