SureSell Properties

07/10/2026

BUYING A HOME IN SOUTH AFRICA

Unlike renting, where monthly payments benefit a landlord, owning a home allows you to build wealth over time.

Each bond repayment increases your equity – the portion of the property you own outright – while any increase in the home’s market value further boosts your wealth.

That equity can later be used as a deposit on a larger property, help finance major life expenses or provide a financial safety net in emergencies.

MAKE SURE YOU ARE FINANCIALLY READY

While buying early has clear advantages, prospective homeowners should first ensure they are financially stable.

A home is a long-term commitment, and selling a property can take time if financial circumstances change.

Seeff recommends that first-time buyers have a healthy credit score, ideally 650 or above, and a stable income before applying for a home loan.

As a guideline:

An R800 000 home generally requires a gross monthly income of about R27 000.
A R1.2 million property typically requires an income of around R40 000 per month.
Banks also assess employment history, existing debt and monthly expenses before approving a mortgage.

Permanent employment with at least three months’ service is generally preferred, while self-employed applicants often face stricter lending criteria.

BUDGET BEYOND THE PURCHASE PRICE

Buying a home involves more than just qualifying for a bond.

Prospective buyers should also budget for:

Bond registration costs
Property transfer costs
Transfer duty on the portion of a purchase price exceeding R1.21 million
Municipal rates and taxes
Sectional title levies, where applicable
Home insurance
Ongoing maintenance
Although many banks offer 100% home loans to qualifying first-time buyers, deposits may still be required on higher-value properties.

Article taken from Property 24

07/10/2026

The SARB increased the repo rate by 0.25% to 7.25% effective 25 September 2026.

07/08/2026

Wembley Square, Gardens, Cape Town
Available 15 October 2026
R16 000

Unfurnished modern one bedroom apartment in a sought after complex.

Open plan kitchen and lounge area, comfortable bedroom and neat bathroom.

Basement parking, sparkling communal pool and fully equipped gym.

Water included in rent and electricity on separate meter and is billed monthly

Please contact me on whatsapp 0676445596. If you are interested in this apartment.

28/05/2026

12/05/2026

Educating buyers on the long-term costs of homeownership during the search phase

A property is a "living" expense. Educating buyers upfront prevents them from becoming financially squeezed the moment the first municipal bill or maintenance emergency hits.

Municipal Rates

Every property owner in South Africa pays municipal rates, regardless of whether they own a freehold home or a sectional title unit. Rates are calculated by the municipality as a percentage of the property's market value and they vary between municipalities. The practical implication for buyers is that a higher-value property attracts higher rates. A buyer who has stretched to buy a more expensive home on the edge of their affordability range needs to factor this into their monthly budget, not just the bond repayment. Municipal electricity and water increases have been running above CPI for several years, with local authorities increasing water charges by between 4.5 and 14 percent and electricity tariffs by between 7 and 13 percent in the July 2025 tariff adjustments.

Levies for Sectional Title and Estate Properties

Buyers looking at sectional title properties or homes within a security estate need to understand that levies are a fixed monthly cost they have no choice about paying. Levies in standard complexes typically start from around R1,500 per month for smaller, basic developments and can exceed R10,000 per month in premium lifestyle estates with extensive facilities.

Since 2016, body corporates are required by law to maintain a reserve fund for major repairs and a 10-year maintenance plan. Special levies can still arise for unexpected major expenses. "I always encourage buyers considering a sectional title property to request the body corporate's most recent financial statements and the minutes from recent AGM and trustee meetings. An underfunded scheme is a financial risk that does not appear in the listing price.

Maintenance: The One Percent Rule

A widely used guideline in the South African market, consistent with international financial planning standards, is to budget approximately one percent of the property's purchase price per year for maintenance and repairs. On a R1.5 million home, that is R15,000 per year, or R1,250 per month, set aside for the inevitable geyser replacement, roof repair, external painting, gate motor, or other maintenance item that will arise over the course of ownership, explains Prinsloo.

First-time buyers almost universally underestimate this cost. They see the property, they see the bond repayment, and they budget for those two things. The geyser bursts three months after transfer and the R12,000 replacement is money they do not have. I make a point of raising this in every buyer conversation before an offer is signed.

Insurance

Building insurance is a mandatory condition of any South African home loan. The bank requires it before the bond is registered and maintains it as a condition throughout the loan term. This insurance covers the structure at its replacement value, which as covered in other articles is almost always higher than the purchase price. Contents insurance, while not mandatory for the bond, is separately advisable and an additional monthly cost.

The Total Picture

Financial advisors in South Africa generally recommend keeping total housing costs, including the bond repayment, rates, levies, insurance, and a provision for maintenance, within 28 to 31 percent of gross monthly income.

Discuss rates, levies, insurance, maintenance, transfer costs and even practical things like garden upkeep or older plumbing before clients make emotional decisions.

Taken from Property24 website

11/05/2026

Are you 60 years or older?

If you are 60 or older in Cape Town, it comes with a number of potential benefits related to municipal rates and services. Many residents aren’t aware of these benefits or how to access them.

If you are dependent on a pension and are 60 years or older with a gross monthly household income of R10 000 or less, or, if you are dependent on a social grant with a gross monthly household income of R10 000 or less, you may qualify for a 100% rates rebate. Should you qualify and earn more than R10 001, but no more than R27 000 a month, you may qualify for a 10% - 90% rates rebate.

To apply, you will need to download and complete the Rebates Application Form, which can be found on the City’s website via the Apply for pensioner or social grant support page.

10/05/2026

To all the mothers out there

24/04/2026

What compliance certificates do I need when selling my home?

1. Electrical Compliance Certificate
Only registered electrical contractors may perform electrical work and issue the certificates.

2. Beetle Certificate
Beetle certificates are no longer required by law but are standard in Western Capesale agreements

3. Electrical Fence Certificate
The certificate is required where:

- There is a change in ownership of a property after 1 October 2012 at which property there is an electric fence.

- There was no change of ownership but there has been an alteration or modification to an electric fence after 1 October 2012, even if it was installed before 1 October 2012.

4. Water Installation Certificate
- This requirement is only applicable to properties that are situated within the jurisdiction of the City of Cape Town Municipality.

- The certificate is required for both freehold and sectional title properties.

5. Gas certificate
From 1 October 2009, it is required that any person installing a liquid gas appliance at a property must have a certificate of conformity issued in respect thereof.

- The certificate may only be issued by an authorised person registered as such with the Liquefied Petroleum Gas Safety Association of Southern Africa (LPGAS), after he or she has inspected the installation and is satisfied that it is safe, and leak free.

- Gas installations for which certificates of conformity are required would include built-in gas fires or braais, gas stoves, hot water systems and the like.

- Furthermore, in terms of Regulation 17(3) of the Pressure Equipment Regulations, the law speaks of a certificate being required after any installation, alteration, modification or change of ownership of property which necessarily implies that a certificate would need to be in place or issued upon the transfer of a property.

- The parties cannot contract out of it - it is required in respect of all properties where there is a gas installation, whether the owner lives there, rents out the property or whether it is vacant or stands empty for most of the year.

24/04/2026

Delays in obtaining a municipal clearance certificate remain one of the most common and frustrating risks in South African property transfers, particularly when transactions are time sensitive.

A municipal clearance certificate is not just another administrative step, it is a legal requirement for transfer. If there is a delay, the entire transaction timeline is affected, and in some cases, it can lead to a deal collapsing.

24/03/2026

What happens if your municipal account is in arrears when selling your property?

When a property is sold, the conveyancer handling the transfer applies to the municipality for a rates clearance certificate. This certificate is lodged with the documents filed at the Deeds Office for registration.

No certificate, no transfer: The municipality will not issue a clearance certificate unless all outstanding rates and service charges have been paid, including any amounts required for advanced collections.

The amount due must be settled before the sale proceeds are available. If the seller doesn’t have enough funds to cover this, they can apply for bridging finance. The conveyancer will then pay the bridging finance company directly from the sale proceeds when the transfer is registered.

Other expenses to budget for when selling

1. Bond cancellation fees

Financial institutions have their own rules for cancelling bonds. Most require 60–90 days’ notice, or penalty fees may apply. To avoid surprises, notify your bank in writing as soon as your property is on the market.

2. Municipal accounts

A rates and taxes clearance certificate is mandatory for transfer. Municipalities usually ask for 2-6 months of payments upfront, which will be refunded if the registration completes sooner.

3. Special levies

For sectional title properties, sellers often need to pay about three months’ levies upfront. Check with your HOA or body corporate for specific amounts.

4. Compliance certificates

Certificates such as electric, plumbing, gas, beetle, and electric fence must be obtained before transfer. Sellers are responsible for any costs to address issues highlighted in the inspection.

5. Tenant deposits

If the property is rented, the tenant’s deposit plus interest must be repaid. Sellers should also budget for potential repairs after tenants vacate.