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Financing is
available for qualified purchasers. A Bank will
require a mortgage on the property as security
for the advances. Most banks and also insurance
companies will lend up to 90 or even 95% of the
purchase price.
Lenders all have varying criteria for lending and each loan is assessed
separately. A “rule of thumb” for qualifying income is that the monthly payments
should not exceed one third to 40% of the joint household income. However, this
can be varied depending on the other commitments of the borrower.
In addition to the base price a purchaser must allow for legal fees and stamp
duty.In most of our projects we do not include floor finishes and cabinetry because
they are such subjective items and we do not believe we can impose our own taste
and preferences on buyers. Thus provision must also be made for these items.
Legal fees for the conveyance average about 1˝% of the property cost. Legal fees
for the mortgage could be another 1% making the total legal fees approximately
2˝%. Besides the legal fees you will have to pay for a valuation which will be
another ˝% of the value/price.Stamp duty is based on a sliding scale and can be as high as 7% of the cost. In
many of our projects like Casuarinas and L’Ambiance we convey the townhouse or
villa before construction so that stamp duty can be assessed only on the land
value and not the total cost. In both these projects the land value only is
below the minimum $450,000 to attract stamp duty. Thus there is no stamp duty
payable.
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The cost of cupboards and floor finishes will depend on your budget and taste.
For example a 12”x12” tile could cost as little as $6.00 and as much as $30.00.
A conservative estimate would be $15.00 to $20 per square foot to purchase and
lay tiles. There are some laminate floorings being advertised at $11.00 per s.f.
laid. When calculating the floor area, exclude the carport.
Cupboards and counter tops also come in a wide range of prices. It would be safe
to budget $25,000 to $40,000 for the kitchen and an additional $12,000 to
$20,000 for the bedrooms and bathrooms.
You should also allow another $10,000 TO $15,000 for miscellaneous and
unforeseen items like landscaping, light fixtures and moving expenses.
Use this table to calculate how much cash you will need
|
10% DEPOSIT |
$ |
|
LEGAL FEES (2˝
%) |
$ |
|
STAMP DUTY (if
any) |
$ |
|
VALUATION, etc. |
$ |
|
KITCHEN
CUPBOARDS |
$ |
|
FLOOR FINISHES |
$ |
|
BEDROOM & BATH
CUPBOARDS |
$ |
|
MISCELLANEOUS |
$_______ |
|
TOTAL CASH
NEEDED: |
$_______ |
Most residential mortgage interest rates will range from 8% to 10%. You can use
this table to calculate your monthly mortgage payment per $1,000 mortgage:-
|
YEARS |
@8% |
@9% |
@10% |
|
15 |
$9.56 |
$10.14 |
$10.75 |
|
20 |
$8.36 |
$9.00 |
$9.65 |
|
25 |
$7.72 |
$8.39 |
$9.09 |
|
30 |
$7.34 |
$8.05 |
$8.78 |
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