Owning property can be an exciting experience. However, if you’re a first time homeowner, you may not know that purchasing property is not only a matter of handing over the money and having the property given to you, but involves many additional costs. Depending on the property specifics: price and history, there will be lawyer’s fees and transfer costs. There are also bond registration, admin and insurance fees payable.
All this before you have even moved in… and then there’s more. Once you’ve settled into your new home you will have to pay rates and taxes on the property every month. You have probably heard that term before, but were never really sure of what it entailed – we’re here to help.
Rates and TaxesRates and Taxes are the municipal costs payable for the provision of streetlights and road maintenance, sewage and refuse removal among other things. If you live in an apartment block or development, you may pay levies to the governing body or body corporate, which will include the above costs as well as any other maintenance costs for the upkeep of the block. The amount payable will depend on the market value of the house and the area in which you live.
The good news is that the municipal government does offer a rebate to those households that really struggle to pay this additional cost each month. There are, however, a few criteria that need to be met before you can apply for this rebate.
Before we get stuck into what those criteria are (and they vary according to province and municipality), you may be asking yourself what a rebate is. According to Google Dictionary:
rebate
/ri:beit/
noun: rebate; plural noun: rebates
1. A partial refund to someone who has paid too much for tax, rent, or a utility.
"The scheme eases the move to the council tax by giving rebates in the first year
2. A deduction or discount on a sum of money due.
"You will be entitled to a 20 per cent rebate off each standard fare
To try and make things a bit easier to understand we’ve summarised what rebates you can possibly get, depending on which province* you stay in
The above table summarises under which general circumstances in these provinces one would be able to apply for a rebate. The rebate percentage would, however, depend on further criteria. In some instances you are able to get up to 100% rebate on the rates you are paying.
As each municipality has different criteria, it is best to investigate which criteria apply to you by logging onto your municipalities website and doing a basic search. The best part of this is that these sites often have the downloadable rebate application form and specify the additional documents required for the application. So, if you qualify, you can simply download the form and apply for your rebate.
*Included are the four main provinces, of which each Province is based on one municipality, as each municipality has different criteria.
Information for table taken from the following municipal websites: