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Purchasing a property can be financially exhausting, it is thus paramount to budget the costs associated with purchasing your new home or say a commercial building. Whether you plan to buy property by way of cash or through banking finance, the “purchase price” is not the only cost you will encounter. In this article, we will list some of the costs that may accompany your purchase and trust that the below will accordingly provide you with an idea of what you should budget for before signing any offer to purchase.

We will list the primary costs that you will encounter when buying a property usually payable :

  1. Deposit due;

  2. Occupational Rent (if you are going to occupy the property before the transfer is registered);

  3. Transfer Duty is a Government Tax payable to the South African Revenue Services (the higher the value of the property the more Transfer Duty is payable;

  4. Deeds Office Fees are fees charged by the Deeds Office to register your transfer;

  5. Bond registration Fees (applicable to banking finance, in some instances, the bank may grant a loan that covers the bond registration fees and costs);

  6. Transfer Fees (the professional fee charged by conveyancers/transferring attorneys);

  7. Insurance;

  8. Levies (in terms of Sectional Title Schemes, or when the property is part of a homeowners association. Special Levies may also be applicable); and

  9. Homeowners and life insurance (a condition commonly imposed on buyers by the bank to secure the granting of a loan). 

It is clear from the above that careful financial planning is required when you intend on buying a property. There are significant cost implications to consider before becoming a homeowner. Owning a home also comes with ongoing costs such as monthly utility costs, garden and cleaning services and maintenance which are all factors to be budgeted for, especially within the first few months after registration of the property into your name.


We trust that the above provides you with sufficient information to start planning your budget before purchasing a property, giving you more control and confidence when settling into your new dream house.

Should you require any further information regarding the costs implicated when purchasing a property, feel free to contact our offices​ on 011 646 8411 or email us.

Philip Da Silva

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