First-Time Home Buyer Guide: South Africa
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🏠 First-Time Home Buyer Guide: South Africa


Welcome to PropWiz, where we take pride in dedicated service.


  • Buying Your First Home – The Smart Way
  • What You Need to Know Before Making the Biggest Purchase of Your Life
  • Flats, townhouses, homes, or apartments

Step 1:

Are You Ready to Buy?

  • Do you have a stable income?
  • Can you afford monthly repayments?
  • Do you have a deposit saved?
  • Understand your long-term goals (Stay 5+ years?)

Step 2:

What Can You Afford?

  • Use online affordability calculators (Banks like FNB, ABSA, etc.)
  • Factor in:
    • Deposit (usually 0%–20%)
    • Transfer fees & bond registration
    • Monthly bond repayment
    • Rates & levies (especially in sectional title)

Step 3:

Understand All the Costs

  • Deposit: Usually required (can negotiate)
  • Bond Registration Cost (varies by bond amount)
  • Transfer Fees:
    • Property < R1.1 million: No transfer duty
    • Above R1.1 million: Transfer duty applies
  • Attorney Fees
  • Municipal Rates & Levies
  • Moving costs
  • Home insurance & maintenance

Step 4:

Where to Search for Property

  • Online Portals: Property24, Private Property, Gumtree, MyProperty
  • Estate Agents
  • Showhouses
  • Consider:
    • Safety of the area
    • Proximity to work/schools
    • Growth potential
    • Public transport access
    • Lifestyle (quiet vs busy area)

Step 5:

Choose the Right Property

  • Type: Freehold, Sectional Title, or Estate?
  • Size: Bedrooms, bathrooms, parking
  • Orientation (sunlight, wind)
  • Future resale value
  • Sectional title? Read the Body Corporate rules

Step 6:

The Must-Do Checklist ✅

  • Get pre-qualified for a bond
  • Visit the property more than once
  • Get an independent inspection (check for damp, cracks)
  • Talk to neighbours if possible
  • Ask for recent rates, levies, and utility bills
  • Review body corporate finances if in a complex

Step 7:

The Must-Not-Do ❌

  • Don’t rush into an offer
  • Don’t buy beyond your means
  • Don’t ignore small defects—they add up
  • Don’t sign anything without understanding it
  • Don’t skip legal steps

Step 8:

Applying for a Home Loan

  • Get pre-approved first (shows you’re serious)
  • Compare interest rates at different banks
  • Use a bond originator (like ooba or BetterBond) – they compare banks for you
  • Interest rate types:
    • Fixed: predictable, but sometimes higher
    • Variable: changes with repo rate (can go up/down)
  • Expect the bank to do a valuation

Step 9:

What to Expect from the Estate Agent

  • Property knowledge & fair advice
  • Helps you with offer to purchase
  • Liaison between you, seller, and attorneys
  • Should be registered with the PPRA (Property Practitioners Regulatory Authority)

Step 10:

The Legal & Transfer Process

  • After Offer to Purchase is signed:
    1. Seller appoints transfer attorney
    2. Bond attorney registers bond with deeds office
    3. Cancellation attorney (if seller still has a bond)
    4. Transfer takes ± 6–12 weeks
  • You will be invoiced for:
    • Attorney fees
    • Transfer duty (if applicable)
    • Pro-rata rates and levies

Step 11:

What Are Bond & Transfer Costs?

  • Bond registration cost (e.g., ± R20,000 for R1m bond)
  • Transfer costs:
    • R0 if under R1.1 million
    • Above: Progressive transfer duty rates
  • Use online cost calculators (ooba or SAHomeBuyers)

Step 12:

Monthly Costs You Must Budget For

  • Bond repayment
  • Rates and taxes
  • Levies (for complex or estate)
  • Home insurance
  • Electricity, water, internet
  • Maintenance

Step 13:

Tips to Make the Right Choice

  • Always compare 3–5 properties before deciding
  • Don’t buy for now – buy for 5–10 years
  • Think lifestyle: noise, safety, distance from essentials
  • Understand resale potential

Step 14:

Useful Resources

  • Property portals: Property24, Private Property
  • Bond originators: ooba, BetterBond
  • Affordability calculators: FNB, Nedbank, ABSA websites
  • Legal & cost calculators: GhostConvey, STBB

Step 15:

Final Words

  • Don’t rush the biggest financial decision of your life
  • Ask questions. Ask again if unclear
  • Trust professionals—but understand the process
Buy within your means – the right home will come

As experts in the property market, we'll be able to assist you with the following services when buying / selling your property;

  • Finding your new home, the one you've always dreamed about.
  • Assistance with a bond for your new home.
  • Evaluating your existing home should you wish to sell your property.
  • Development projects - we work closely with architects, attorneys, builders, registered project managers and bond originators to offer you a turnkey solution.

 

Based in Pretoria, we happily provide services across South Africa.

 

PropWiz services include:

  • Property Sales
  • Commercial Sales
  • Property Developments
  • Property Rentals

 

Please feel free to call us to help you start the process that might change your life for ever, and start living your dream!

 











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