The costs involved when buying a property in South Africa

When purchasing property in South Africa, many prospective buyers do not realise the costs involved over and above the cost of the property and the actual figures often surprise and sometimes shock.

There are two main costs involved when purchasing a property. The cost involved in transferring the property into your name and the costs to raise finance for the purchase of the property. See below some examples of the costs you can incur when purchasing property.

It is always best to find out exactly what the costs would be before you decide on your budget as these may influence the price that you are able to pay, The figures below are good estimate of what you are likely to pay. Remember that these purchase costs are due before the transfer actually occurs and needs to be taken into account when planning cash-flows.

The costs for purchasing a property in your private capacity

Purchase Price

R 1 million

R 3 million

R 5 million

Transfer / Attorney Fee R 11, 400 R 20, 520 R 29, 640
Transfer Duty (Government Tax) R 25, 000 R 185, 000 R 345, 000
Total Purchasing Costs R 36, 400 R 205, 520 R 374, 640
Total amount required for property purchase R 1, 036, 400 R 3, 205, 520 R 5, 374, 640
Bond Costs for a 50% Bond (only relevant if applying for bond finance on the property) R 6, 560 R 11, 690 R 15, 110
Total amount required for property purchase including bond costs R 1, 042, 960 R 3, 217, 210 R 5, 389, 750

The costs for purchasing a property in a Company or Trust

Purchase Price

R 1 million

R 3 million

R 5 million

Transfer / Attorney Fee R 11, 400 R 20, 520 R 29, 640
Transfer Duty (Government Tax) R 80, 000 R 240, 000 R 400, 000
Total Purchasing Costs R 91, 400 R 260, 520 R 429, 640
Total amount required for property purchase R 1, 091, 400 R 3, 260, 520 R 5, 429, 640
Bond Costs for a 50% Bond (only relevant if applying for bond finance on the property) R 6, 560 R 11, 690 R 15, 110
Total amount required for property purchase including bond costs R 1, 097, 960 R 3, 272, 210 R 5, 444, 750

For a free consultation please simply email us at property@intergate-immigration.com.

Quick links

– Purchasing Property – Renting Property – FAQ’s –

– Purchase Costs – The Estate Agents Role –

– Properties For Sale in Cape Town – Fee Structures –

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