Hidden Costs When Buying a House in South Africa
The purchase price is just the beginning. South African homebuyers are often shocked by the additional costs that come with buying property. Here are the hidden costs you must budget for.
Key Takeaways
- Budget an extra 8-12% on top of the purchase price for all costs
- Transfer duty alone can be R50,000+ on a R2m property
- Bond registration costs are separate from transfer duty
- Moving costs, renovations, and rates deposits add up quickly
- Get a full cost breakdown before signing any offer to purchase
Transfer duty
Transfer duty is a government tax paid to SARS when buying property. It is calculated on the purchase price using a sliding scale. Properties under R1,100,000 are exempt. On a R2,000,000 property you pay approximately R55,000.
- Government tax paid to SARS
- Exempt on properties under R1,100,000
- Sliding scale: higher price = higher percentage
- Must be paid before transfer can be registered
Transfer and bond registration costs
These are attorney fees for transferring the property into your name and registering the bond. Together they can add R50,000-R80,000 to your costs on a typical first home.
- Transfer attorney fees (conveyancer)
- Bond registration attorney fees
- Deeds Office fees
- VAT on all attorney fees
Other costs to budget for
Beyond the legal costs, there are several other expenses first-time buyers forget about. These include home inspection fees, rates and utilities deposits, moving costs, and immediate maintenance.
- Home inspection: R2,000-R5,000
- Rates and utilities deposits: R5,000-R15,000
- Moving costs: R3,000-R15,000
- Immediate repairs and maintenance: variable
- Home insurance (required by the bank)
Ready to see your own numbers?
Use the Bond & Transfer Cost Calculator