The True Costs of Buying Property in South Africa (Beyond the Purchase Price)Many first-time buyers budget for the price, but not the “on-costs.”
Here’s what to expect:
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Transfer duty (tax): Payable to SARS on most property purchases (primary residence exemptions apply up to a threshold). Rates are on a sliding scale and are updated periodically; always check the latest SARS table before you commit.
South African Revenue Service
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Conveyancing (transfer) fees: Paid to the seller’s conveyancer to register the property in your name. Fees follow guideline tariffs published for the profession and scale with price.
LSSA
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Bond registration fees: If you finance with a bank, you’ll pay a separate attorney (the bank’s panel conveyancer) to register the bond. Some advisors suggest reserving roughly 10% of the purchase price to cover assorted costs (duty, legal, disbursements, initiation fees, etc.)—your actual figure varies by price and duty.
Ooba
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Bank costs: Bond initiation fee and monthly service fee.
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Attorney disbursements: Deeds office fees, FICA, postage, petties, etc., itemised on your statement.
LSSA
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Levies & rates pro-rata: Sectional title levies and municipal rates are apportioned on transfer.
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Insurance: Homeowners insurance (for bonded properties) and optional life cover.
Tip: Ask your agent and bond originator for a cost breakdown at your offer stage. Use a reputable calculator and verify transfer duty against SARS’s current table. A clear cost map prevents surprises and keeps your cash flow intact on transfer day.
We make use of the amazing conveyancers at Mc vd berg, use their
McFeesSheet to get an estimate of some costs.
