7 Hidden Costs That Can Blindside South African Property Buyers
What you see on the listing isn’t the whole story. The devil is in the details – and those details can cost you a fortune if you’re not paying attention. Whether you’ re a first-time buyer or seasoned investor, there are hidden charges lurking in the fine print that can torch your budget and derail your plans.
Century 21 South Africa shares some insights into the real costs that don’t always make it onto the showhouse brochure – but absolutely should.
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Transfer Duty – The Silent Sting
Unless you’re buying a new build directly from a developer (and even then, check the terms), expect to fork out for transfer duty. This tax goes straight to SARS and kicks in on properties priced over R1.1 million. It’s calculated on a sliding scale – and it adds up fast. Forget to factor it in, and you’re in for a nasty shock.
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Transfer and Bond Registration Fees – Legal, Binding, Expensive
You’ll need a conveyancing attorney (appointed by the seller) to transfer the property into your name. Then, if you’re financing through a bank, a second attorney will register your bond. Each sends a bill. These costs are based on the purchase price and loan amount – and they’re non-negotiable.
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Rates, Levies and Utility Arrears – The Seller’s Debt Could Be Yours
Before a sale is finalised, the municipality and/or body corporate needs to issue a clearance certificate confirming there are no outstanding bills. But in practice, many sellers fall behind. If no one flags it early, you might end up paying arrears that aren’t yours just to get the deal across the line.
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Occupational Rent – Paying to Live in a House You Don’t Yet Own
If you move in before the transfer goes through, you’ll probably need to pay occupational rent to the seller. It’s usually charged monthly or pro rata – and it can easily match (or exceed) your bond repayment. Make sure the amount and terms are clearly agreed upon upfront.
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Moving Costs – More Than Just a Bakkie and a Braai
Moving house isn’t cheap. Whether you hire movers or bribe friends with pizza, the logistics of shifting your life from one address to another costs real money. Factor in packing materials, transport, security deposits, and connection fees for services like internet and electricity.
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Maintenance and Immediate Repairs – New House, Old Problems
Even a property that looks move-in ready can spring leaks, creaks or power trips the minute you get the keys. Pre-purchase inspections help, but they’re not always foolproof. Set aside a buffer for paint, plumbing, security upgrades and those “small” fixes that turn into big ones overnight.
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Homeowners’ & Life Insurance – Required, but Rarely Quoted
If you’re taking out a bond, your lender will require you to have building insurance and life insurance to cover your mortgage in case of death. This isn’t just a nice-to-have – it’s mandatory. While it protects your investment, it’s another monthly cost many buyers forget to include in their long-term calculations.
The Bottom Line? Do the Maths Twice.
A property isn’t just an asset – it’s a commitment. And in the South African market, skipping the fine print can cost you dearly. Ask questions. Get full breakdowns. And build a buffer into your budget.
Because when it comes to buying property, what you don’t know can cost you more than what you do.
For more information, visit https://www.century21.co.za/. Century 21 South Africa Head Office is located at Unit 1 Palms View 54 Van Buuren Road, Bedfordview. Telephone: +27 11 455 0066
