Learn SA property

Plain-English guides for buyers, investors, landlords and South Africans abroad. Free for everyone.

10.75%prime rate (SARB)
R 1 210 000no transfer duty up to (SARS)
R 3 000 000CGT-free gain on your home
Buying your first home

Six steps from budget to keys - usually two to three months once your offer is signed.

  1. Know your budget Banks usually cap your bond instalment at about 30% of gross income. Check your affordability and pull your free credit report - late accounts cost you a better rate.
  2. Get pre-approved A bond originator applies to several banks at once, free to you, and sellers take a pre-approved buyer more seriously. Many first-time buyers qualify for a 100% bond.
  3. Save for the costs, not just the deposit Transfer duty, attorney and Deeds Office fees are paid in cash. Homes up to R 1 210 000 pay no transfer duty. Work out the full amount with the cost of buying calculator.
  4. Make an offer (the OTP) An Offer to Purchase is binding once both sides sign. Make it "subject to bond approval" so you can walk away if finance falls through, and check which compliance certificates the seller will provide.
  5. Bond approval and attorneys Once the bank approves, the seller's transferring attorney and the bank's bond attorney take over. You'll sign documents, provide FICA and pay the costs.
  6. Registration - keys! After lodgement the Deeds Office usually registers within a couple of weeks.
Help with your deposit: First Home Finance (formerly FLISP) is a government subsidy towards your deposit or bond. Households earning R 3 501 to R 22 000 a month can get up to R 169 264.See if you qualify.
What can I afford? Cost of buying Rates people got
Being a landlord

What the Rental Housing Act and the PIE Act expect of you, and what SARS lets you deduct.

Deposits and inspections
  • Keep the deposit in an interest-bearing account; the interest belongs to the tenant.
  • Inspect together when the tenant moves in and out, and keep a signed list of defects.
  • Refund within 7 days if nothing is owed, or 14 days after repairs if deductions are due.
Leases and evictions
  • Put the lease in writing. Where the Consumer Protection Act applies, fixed-term leases have notice and cancellation rules.
  • Only a court order can evict a tenant (PIE Act). Never change the locks or cut water or electricity.
  • Run a credit and rental-history check before you sign.
Tax
  • Rental profit is taxable.
  • Bond interest, rates, levies, insurance, repairs and agent fees are deductible.
  • Improvements aren't - they add to your base cost for CGT instead.
Track it in your portfolio Cash flow calculator
Investing in buy-to-let

Judge a deal on three numbers - then see what happens if things go against you.

1 Monthly cash flow Rent after vacancy, levies, rates, insurance, maintenance, agent fees and the bond. Negative means you top it up every month.
2 Net yield Rent after running costs, as a % of the price. Many SA investors look for around 6% or more.
3 Cash-on-cash return Annual cash flow divided by the cash you put in (deposit plus buying costs). Compare it with what that cash earns elsewhere.
Then stress-test it: what if rates rise 1% or 2% from today's 10.75% prime, or the unit sits empty for two months? The deal analyser shows the rate and the rent at which it still breaks even.
Analyse a deal Yield Compare areas
Moving provinces

Before you fall for the view, compare these - and consider renting for six months first.

Schools, hospitals and the commute - or fibre, if you work remotely
Municipal service delivery: water, electricity and roads
Rates, levies and the cost of living against where you are now
Rental demand, in case you need to let the property later
Compare areas side by side Semigration discussions
Buying and selling from abroad

Non-residents can own SA property - plan the money in and out, and the tax.

Buying
  • SA banks typically lend non-residents a smaller share of the price, so expect a bigger deposit.
  • Bring money in through an authorised dealer (your bank) and keep the paperwork - you'll need it to take the proceeds out again.
Tax
  • Rental income from SA property is taxed in SA - you may need to register as a taxpayer even if you've emigrated.
  • Selling for R 2 000 000 or more? The buyer must withhold 7.5% for SARS (s35A) - an advance on your CGT you can apply to reduce.
Your currency
  • Use the currency switch in the top bar to see amounts in pounds, dollars, euros or Australian dollars (ECB rates, updated daily).
Buying from abroad guide CGT (non-resident) Expats & non-residents
Glossary

20 property words, explained.

Access bond
A home loan that lets you withdraw extra payments you've made - useful as an emergency fund.
Body corporate
The owners of a sectional-title scheme, who manage the common property and set levies.
Bond originator
A free service that applies to several banks for you to find the best home-loan rate.
Bond registration
Registering the bank's security over your property at the Deeds Office, done by the bank's attorney.
Compliance certificates
Electrical (COC), and where applicable gas, electric fence and beetle (entomologist) certificates the seller must usually provide.
Conveyancer
An attorney specialising in property transfers. The seller appoints the transferring attorney.
Deeds Office
The government office that records ownership of property and bonds.
Exclusive use area
Part of the common property (like a garden or parking bay) reserved for one sectional-title owner.
Levy
The monthly contribution sectional-title or estate owners pay for maintenance, insurance and security.
Lodgement
When the attorneys submit the transfer and bond documents to the Deeds Office.
Occupational rent
Rent paid by a buyer who moves in before registration, or a seller who stays on after it.
Offer to Purchase (OTP)
The written agreement to buy. Binding once signed by both sides.
Pre-approval
A bank's indication of how much it will lend you, before you've found a property.
Rates and taxes
The monthly municipal charge based on your property's valuation.
Rates clearance certificate
Proof from the municipality that the seller's rates are paid up - needed before transfer.
Sectional title
Owning a unit in a complex plus a share of the common property.
Suspensive condition
A condition (e.g. bond approval) that must be met by a date for the sale to go ahead.
Transfer duty
A tax paid to SARS by the buyer, on a sliding scale by price. Updated automatically on this site.
Voetstoots
Sold 'as is'. The seller is still liable for defects they knew about and hid.
Yield
Annual rent as a percentage of the price. Gross is before costs, net is after running costs.