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African Property South Purchase costs
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 |
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