What you see on the listing isn’t the whole story. The real cost lies 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.
Here are some insights into the real costs that don’t always make it onto the showhouse brochure – but absolutely should.
1. 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.
Transfer duty, in terms of section 2 of the Transfer Duty Act 40/1949 (TDA), is a compulsory cost component in all immovable property transactions. However, in terms of section 9 of the TDA, there are various specific legal exemptions - some of which apply to individuals and will be explored here.
In short: transfer duty is a tax levied on the acquisition of immovable property. The buyer is liable for payment to SARS before the transfer is lodged with the deeds office. The amount payable depends on the property value, calculated according to the SARS sliding scale at the time of transfer.
Important distinction: Transfer duty is not the same as transfer costs. Transfer costs cover the legal and administrative fees charged by the conveyancer (the transferring attorney), including conveyancing fees, deeds office fees and possible bank charges. These are also for the buyer’s account, but they benefit the attorney, not SARS.
While exemptions may apply for transfer duty, transfer costs are always payable once the Offer to Purchase is signed and the conveyancer is appointed.
2. Transfer and bond registration fees - Legal, binding, expensive
Next, come the professional fees. You’ll need a conveyancing attorney (appointed by the seller) to transfer the property into your name. If you’re financing through a bank, a second attorney will register your bond. Each service comes with its own bill, based on the buying price and loan amount - and these fees are non-negotiable.
Buyers are responsible for covering transfer duty (if applicable), conveyancing fees, and bond registration costs.
For example, on a property priced at R1.5 million, estimated costs could look like this:
- Transfer duty: R12 000
- Property transfer costs: R35 392
- Transfer deeds office fees: R1 544
- Other fees (post, petties, FICA): R2 000
- Total transfer costs: R50 936
- Bond registration cost: R35 392
- Bond deeds office fees: R1 544
- Other fees (post, petties, FICA): R2 000
- Total bond costs: R38 936
Grand total of additional costs: ±R89 872
Rates, Levies and Utility arrears - The seller’s debt could be yours
Before a sale is finalised, the municipality and/or body corporate must issue a clearance certificate confirming there are no outstanding bills. In practice, however, sellers sometimes fall behind. If no one checks this early, you may be forced to cover arrears that aren’t yours just to get the deal across the line.
4. Occupational rent - Paying to live in a house you don’t yet own
If you move in before transfer is completed, the seller may charge you occupational rent. This is usually calculated monthly or pro rata, and it can easily match - or even exceed - your bond repayment. Always ensure the amount and terms are clearly agreed upon upfront.
5. Moving costs - More than just a bakkie and a braai
Moving house is often underestimated. Whether you hire professional movers or call in favours from friends, costs creep up quickly. Think about packing materials, transport, security deposits, and connection fees for utilities like internet and electricity.
6. Maintenance and immediate repairs - New house, old problems
Even homes that appear “move-in ready” can spring surprises once you get the keys. Leaks, creaks, or electrical hiccups aren’t unusual. While pre-purchase inspections help, they’re not foolproof. It’s wise to set aside a budget buffer for paint, plumbing, security upgrades, and those “small” fixes that spiral into big expenses.
7. Homeowners’ and life insurance - Required, but rarely quoted
If you’re financing with a bond, the bank will insist on building insurance and life insurance. These aren’t optional extras - they’re mandatory. While they safeguard your investment, they also add to your monthly expenses. Many buyers forget to include them in their long-term budget planning.
The bottom line? Do the math twice
A property isn’t just an asset - it’s a long-term commitment. And in the South African market, skipping over the fine print can cost you dearly. Always ask questions, demand full breakdowns and build in a buffer for unexpected expenses.
Because when it comes to buying property, what you don’t know can cost you far more than what you do.
