The advertised price is only the start. Buyers need cash for several costs before they get the keys, and ongoing costs after.
1. The deposit
Banks can lend up to 100% of the price for some buyers, but a deposit of 10% or more usually means a better interest rate — which saves far more over 20 years than the deposit itself. On a R1.5 million home, 10% is R150 000.
2. Transfer duty (paid to SARS)
Transfer duty is a tax on buying property. Since 1 April 2025 there is no transfer duty on the first R1 210 000 of a property’s value; above that it starts at 3% and rises in brackets to 13%. A R1.5 million home attracts R8 700; a R2.5 million home R67 200. If you buy from a VAT-registered developer and the sale includes VAT, no transfer duty is payable.
3. Transfer costs (conveyancing)
The transfer attorney — usually appointed by the seller, paid by the buyer — charges a professional fee plus VAT, and passes on disbursements such as deeds office fees and rates clearance costs. Fees are negotiable; get a written quote.
4. Bond registration costs
If you take a home loan, the bank’s attorney registers the bond at the deeds office. You pay their fee plus VAT and disbursements, and usually a bank initiation fee.
5. The monthly repayment
At the current prime rate of 10.75%, a R1.35 million bond over 20 years costs about R13 706 a month — and roughly R1.94 million in interest over the term. Banks usually want the repayment to be no more than about 30% of your gross household income.
6. Running costs
Owners pay rates and taxes, building insurance (banks require it), levies in a complex, maintenance and repairs, and often a monthly bank service fee. Budget for these before you decide what you can afford.
Quick checklist
- Use the affordability calculator to set a realistic price range.
- Work out transfer duty and your total buying costs.
- Check the repayment at today’s rate — and at 1% higher.
- Compare buying with renting over the time you expect to stay using the buy vs rent calculator.