What do you needed to buy a house in South Africa?

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What you need

Financial readiness

1. Deposit

   • Many banks expect you to put down at least 10-15% of the purchase price as a deposit.
   • Sometimes there are “100% home loan” options, but those are less common or come with stricter requirements.

2. Good credit record

   • A clean payment history, low debt relative to income, no defaulted accounts helps a lot.
   • Banks will check your credit score when you apply for a bond (mortgage).

3. Proof of income and affordability

   • Salary slips (not older than ~2 months), bank statements (often last 3-6 months) to show income, expenses, ability to repay.
   • If self-employed, additional documents like financial statements or a letter from an accounting officer.

4. Transaction & legal costs
   Besides the purchase price, you’ll need extra cash for things like:

   • Transfer duty/tax (if property price is above certain threshold)
   • Conveyancer / legal fees for registering the transfer (the property title)
   • Bond registration fees if you’re taking a mortgage (sometimes called a bond attorney’s fee)
   • Municipal rates & levies, insurance, maintenance costs.

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Legal & paperwork

1. Identity / proof of residence

   • South Africans: ID documents.
   • Non-residents: valid passport, sometimes proof of address, possibly other documents like proof of funds.

2. Offer to Purchase / Sales Agreement

   • Once you decide on a property, you sign an Offer to Purchase (sometimes called Agreement of Sale). It becomes binding once both parties agree and conditions (if any) are met.

3. Conveyancer

   • A conveyancer (registered property lawyer) must handle the legal transfer (registration) of ownership at the Deeds Office.

4. Valuation / bond application

   • If using a mortgage, bank will require a valuation of the property to ensure it is worth what you say it is.
   • You’ll submit your bond application, which includes all your financial docs.

5. Compliance / inspections

   • Check title deeds for any debts or liens.
   • Possibly get inspections of structure, plumbing, electrical etc.
   • In some areas (e.g. Western Cape) a plumbing compliance certificate may be required.

6. Transfer & registration

   • After all conditions are met (payment, inspections, bond registration, etc.), the property is transferred into your name via the Deeds Office. The conveyancer handles the paperwork.

7. Paying transfer duty / taxes

   • If property value is above a threshold, you’ll pay transfer duty to SARS.

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For foreign/non-resident buyers

• Non-residents can buy property in South Africa. There are no blanket restrictions, but there are special rules.
• If you’re not a resident, borrowing (mortgage) is generally limited to 50% of the purchase price; the rest must be paid in cash from outside SA.
• You’ll need to comply with exchange control rules (how money is brought into SA, how it’s declared).

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The process (rough steps + timeframe)

Here’s a simplified sequence of steps:

1. Decide your budget, get pre-approval for a bond (if needed).
2. Find property, view it, inspect, check title deeds, etc.
3. Make an Offer to Purchase. Include any conditions (e.g. subject to bond approval).
4. Once offer is accepted, appoint conveyancer.
5. If buying with a loan, get bond application approved and valuation done.
6. Pay deposit (usually into a trust/conveyancer’s account).
7. Pay any transfer duty, bond fees, conveyancing fees.
8. Conveyancer submits documents to Deeds Office for transfer registration.
9. Once transfer is registered, get the title deed in your name, you take possession.

Timeframe usually is 8-12 weeks from offer to transfer, depending on complexity.

Common pitfalls & how to avoid them

Underestimating ongoing costs — budget for levies, repairs, insurance, and municipal increases.

Skipping inspections — a cheap inspection is an expensive regret.

Not checking title closely — unexpected servitudes or unpaid bonds cause delays.

Overstretching on repayments — leave room in the budget for interest hikes or job changes.

Choosing the cheapest conveyancer/attorney — experience and turnaround matter; cheap can be slow.

Practical tips to speed things up

Get your documents ready before you view properties.

Use a mortgage broker to speed loan comparison and application.

Put realistic, clean conditions in offers (e.g., “subject to bond approval” and a 14-day inspection window).

Communicate quickly: respond to requests from agents, banks, or conveyancers within 24–48 hours. Delays often happen because buyers are slow to reply.

Call to Action

Ready to explore the best investment opportunities in Cape Town? 

Contact Lake Properties today and let our experts guide you to your ideal property.

If you know of anyone who is thinking of selling or buying property,please call me

Russell 

Lake Properties

ww.lakeproperties.co.za  

info@lakeproperties.co.za 

083 624 7129 

Lake Properties                     Lake Properties