Skip to content
    Buying

    First-Time Buyer's Guide to Buying Property in South Africa

    PropertyGuru Editorial 9 min read
    First-time buyers receiving the keys to their new South African home

    Buying your first property in South Africa is equal parts exciting and intimidating. This guide walks you through every stage — from working out what you can realistically afford to the day the deed is registered in your name.

    1. Work out what you can afford before you shop

    South African lenders generally allow your total monthly debt repayments to reach about 30% of your gross monthly income. On a R30,000 salary that means roughly R9,000 towards a bond — around R900,000 at prime over 20 years.

    Run the numbers before you fall in love with a listing. Our affordability calculator applies the 30% rule and factors in existing debt, while the bond calculator shows the monthly repayment at different deposit levels and interest rates.

    2. Get pre-approved (it changes how sellers treat you)

    Bond pre-approval is a lender's written indication of what it will lend you. It costs nothing, is valid for around three months, and makes your offer materially stronger than an unqualified buyer's.

    Pre-approval also flags credit-record problems early, while there is still time to fix them before a formal application.

    3. Budget for the costs beyond the purchase price

    Transfer duty is payable to SARS on properties above the annual threshold and rises on a sliding scale. Add conveyancing fees, bond registration costs, deeds office fees and FICA admin — together typically 8% to 10% of the purchase price on a bonded transaction.

    New-build purchases from a developer are usually VAT-inclusive with no transfer duty, which can make them cheaper to close than an equivalent resale.

    4. Making the offer and what happens next

    An accepted Offer to Purchase is a binding contract, so read the suspensive conditions carefully — bond approval, a satisfactory home inspection and the sale of your existing property are the common ones.

    Once signed, the conveyancer takes over. Bond registration and transfer typically run in parallel and take eight to twelve weeks from acceptance to registration.

    5. Protect the purchase

    Lenders require homeowner's (building) insurance from registration day. Bond protection or life cover is optional but is what stops your family inheriting a debt they cannot service.

    Comparing insurance at the same time as your bond usually beats accepting the bank's default product.

    Frequently asked questions

    More guides

    All property guides