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.
The bond repayment is the number that dominates most first-time buyer conversations. It is what the bond originator calculates, it is what the banks approve against, and it is the figure buyers use to decide whether a property is affordable. But the monthly bond repayment is not the total cost of owning a home.
In his experience Morné Prinsloo, local agent for REMAX Town and Country Roodepoort and Krugersdorp buyers who discover the full cost picture only after transfer are not just surprised. They are sometimes genuinely stretched in ways that put their new ownership under financial pressure from the very first month.
"I address this during the search phase, before any offer is signed, because that is when the information is most useful," he says.
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. In the City of Johannesburg, which covers Roodepoort and the surrounding areas, rates are charged on both land and improvements.
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
Prinsloo says 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," he says.
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. "When I walk a buyer through their full cost picture using this framework before they sign an offer, they either confirm that their budget works, or they realise they need to adjust their search range. Either outcome is better than discovering the problem after transfer.
According to Jacques Vorster, Principal of Century 21 Helderberg, Stellenbosch, Hermanus & Kleinmond and surrounds, believes one of the biggest responsibilities we have as agents is managing expectations properly. Buyers often focus only on the bond repayment and forget that ownership comes with a whole monthly ecosystem attached to it.
"I discuss rates, levies, insurance, maintenance, transfer costs and even practical things like garden upkeep or older plumbing before clients make emotional decisions. I’d rather have an honest conversation upfront than watch somebody struggle six months later. I also tell first-time buyers that houses have a very special talent — they always need something. The geyser doesn’t care that it’s month-end.
"The goal is to help buyers purchase comfortably, not just qualify on paper," he says.
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