The Role of the Deeds Office in Property Transfers in Cape Town

Lake Properties, Cape Town is a young and dynamic real estate agency located in Wynberg, Cape Town. We offer efficient and reliable service in the buying and selling of residential and commercial properties and vacant land in the Southern Suburbs including Bergvliet,Athlone,Claremont,Constantia,Diepriver,Heathfield,Kenilworth,Kenwyn,Kreupelbosch, Meadowridge,Mowbray,Newlands,Obervatory,Pinelands,Plumstead,Rondebosch, Rosebank, Tokia,Rondebosch East, Penlyn Estate, Lansdowne, Wynberg, Grassy Park, Steenberg, Retreat and surrounding areas . We also manage rental properties and secure suitably qualified tenants for property owners. Another growing extension to our portfolio of services is to find qualified buyers for business owners who want to sell businesses especially cafes, supermarkets and service stations. At Lake Properties we value our relationships with clients and aim to provide excellent service with integrity and professionalism, always acting in the best interest of both buyer and seller. Our rates are competitive without compromising quality and service. For our clients we do valuations at no charge

Sunday, 11 January 2026

The Role of the Deeds Office in Property Transfers in Cape Town

The Role of the Deeds Office in Property Transfers in Cape Town

When transferring a property in Cape Town, there is one institution that ultimately decides when the deal is legally complete: the Deeds Office.

Many buyers and sellers misunderstand this part of the process. They assume the sale is done once documents are signed or money changes hands. That assumption causes frustration, poor planning, and unnecessary pressure on agents and attorneys.

Here is the reality.

In South Africa, property ownership only changes when the Deeds Office registers the transfer. Until then, the seller remains the legal owner — regardless of occupation or payment.

What the Deeds Office Is and Why It Exists

The Cape Town Deeds Office is a government body responsible for maintaining the official record of property ownership and real rights.

Its purpose is not administrative convenience.
Its purpose is legal certainty.

The Deeds Office ensures that:

ownership records are accurate and enforceable
buyers are protected from defective or fraudulent sales
sellers are released from liability once transfer is complete
banks can safely register mortgage bonds
the property market remains stable and trustworthy

Without this system, property ownership would be disputed constantly.

The Deeds Office’s Role in the Property Transfer Process

The Deeds Office does not negotiate, advise, or assist buyers and sellers.
Its role is verification and registration.

Once your conveyancing attorney lodges the transfer documents, the Deeds Office will:

examine the existing title deed
confirm the seller’s legal right to transfer ownership
verify buyer and seller identity and marital status
ensure compliance with the Deeds Registries Act
confirm municipal rates clearance from the City of Cape Town
confirm SARS transfer duty payment or exemption
register or cancel mortgage bonds
record servitudes, restrictions, or endorsements

If any part of this chain fails, the transfer stops.

Why Conveyancers Matter So Much at Deeds Office Level

Only qualified conveyancing attorneys may prepare and lodge documents at the Deeds Office.

This is because Deeds Office examiners work on strict legal standards. They do not “fix” mistakes. They reject them.

A competent conveyancer:

anticipates common Deeds Office queries
ensures documents match the title deed exactly
prevents technical rejections that cause delays
coordinates bond cancellations and registrations properly

This is where professional quality directly affects transfer speed.

Deeds Office Timelines in Cape Town

Once documents are lodged at the Cape Town Deeds Office:

initial examination begins
multiple examiners review the file independently
any errors trigger formal queries
once cleared, the matter is approved for registration

In clean transactions, this phase usually takes 7 to 14 working days.

During peak periods or when errors occur, it can take longer.

The Deeds Office does not operate on urgency.
It operates on compliance.

The Moment Ownership Legally Changes

This point cannot be overstated.

Ownership of a property in Cape Town changes only on registration at the Deeds Office.

Not on:

signing the Offer to Purchase
paying the deposit
receiving keys
taking occupation

Only registration creates legal ownership.

This is why banks release funds only after registration and why agents track this date so closely.

Common Deeds Office Issues That Delay Transfers

In Cape Town, the most common causes of Deeds Office delays include:

incorrect or outdated FICA documents
unresolved municipal rates or levies
SARS transfer duty backlogs
bond cancellation delays
discrepancies between the title deed and actual property details

These issues are routine — and avoidable with proper preparation.

Why Understanding the Deeds Office Protects You

Whether you are a buyer or a seller, understanding the Deeds Office process allows you to:

set realistic timelines

plan occupation responsibly

avoid financial exposure

reduce stress and conflict

identify real problems early

In a competitive market like Cape Town, informed decisions are a serious advantage.

Lake Properties Pro-Tip

The Deeds Office does not delay transfers — poor preparation does.

If your paperwork is accurate and compliant, registration moves efficiently.

If it isn’t, no amount of pressure will change the outcome.

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

Saturday, 10 January 2026

What if the landlord sells the house,what are your rights as a tenant in Cape Town

Lake Properties

Lake Properties

What happens when the landlord sells

If your landlord sells the property, your lease doesn’t automatically end. The tenant’s right to remain under an existing lease generally takes priority over the sale — the buyer steps into the shoes of the old landlord and must honour the lease until it ends.

The law and the big ideas (explained simply)

1) “Lease goes before sale” — huur gaat voor koop

There’s a long-standing legal principle (from Roman-Dutch/common law) called “huur gaat voor koop” — literally “the lease goes before the sale.” Practically this means that if you signed a lease before the property was sold, the new owner inherits that lease and cannot simply kick you out because they bought the house. Your rent, the lease length, and other agreed terms stay in force until the lease expires or is lawfully ended.

2) If your lease still has time to run

If you’re on a fixed-term lease (for example, until 31 August 2026):

The new owner must respect that lease. They become the landlord and are bound by the lease’s material terms (rent, repairs, notice periods, etc.).

3) If your lease has expired and you’re month-to-month

If the written lease period has ended and you’re now on a periodic/month-to-month basis:

The new owner can give you lawful notice to vacate — but they must follow the notice rules set out in your lease or by law (commonly at least one full calendar month if that’s what the lease or practice requires). They cannot just change the locks without following due process.

4) Security deposit — what happens to it

The seller (old landlord) should transfer your deposit and any accrued interest to the purchaser as part of the sale process. The new owner then holds the deposit and is responsible for returning it at the end of the tenancy (less any proper deductions). Always ask for written confirmation that the deposit was transferred.

5) Showings, privacy and reasonable notice

While the house is on the market, the landlord/agent may want to show prospective buyers through the property. Even then, you still have the right to reasonable notice and quiet enjoyment. The landlord must arrange viewings at reasonable times and give you notice — they can’t just bring strangers in at any hour. If showings become unreasonable, raise it in writing and, if necessary, get legal advice.

6) If the new owner wants you out before the lease ends

The new owner cannot evict you without following legal procedures. If they try to evict you, they must obtain a court order — and in most residential cases the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE) applies, which requires that evictions be just, equitable and procedurally correct (notice, hearing, court order). Unlawful or forcible evictions (changing locks, removing possessions without a court order) are illegal.

7) What if you’ve breached the lease?

If you’ve broken important lease terms (for example, not paying rent), the new owner can pursue the usual remedies — but they still must follow lawful eviction procedures (court application under PIE if applicable). Being in breach removes some protections but does not allow illegal self-help by the owner.

8) Things that the huur-goes-before-koop rule doesn’t always cover

Some lease side-agreements might not transfer automatically — for example, special options or personal promises that are not part of the essential landlord–tenant relationship may not bind the buyer in every case unless the buyer knew about them when buying. If you have something unusual in writing (an option to buy the property, for instance), get legal advice.

Practical steps you can take (what to do right now)

Ask for written confirmation of the sale and who the new owner is (name, contact, where to pay rent).
Get written proof that your deposit has been transferred to the new owner (or ask the seller and buyer to confirm in writing).
Keep paying rent on time and keep receipts — paying rent protects your legal position.
If you want to stay but the new owner suggests different terms, don’t sign anything you’re unsure about without reading carefully or seeking advice.
If the owner wants you to leave before your lease ends and you don’t want to leave, ask to see their legal notice and court papers before you do anything. If they try to force you out without a court order, call legal aid, the Rental Housing Tribunal or an attorney.
If showings are frequent or intrusive, request a written viewing schedule and reasonable notice in writing — you can agree to reasonable times but should not tolerate harassment or unreasonable intrusion.

When to get help

If the new owner refuses to acknowledge your lease or claims you must leave immediately — get legal advice or contact Legal Aid / a tenant advice organisation.
If the owner tries to evict you without a court order, contact the police (for illegal activity) and seek legal help — PIE protects occupiers from illegal evictions.

Lake Properties Pro-Tip

If your landlord tells you the property is being sold, ask them (in writing) for three things right away:

Name and contact details of the new owner (once known).
Written confirmation that your deposit and any interest have been transferred to the new owner.
Where to pay rent from now on (bank details and a written receipt protocol).

Keeping these as written records makes any dispute far easier to resolve — and shows you’re acting responsibly as a tenant. If anything looks wrong, take screenshots, keep emails, and get advice early.

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

www.lakeproperties.co.za

info@lakeproperties.co.za

083 624 7129

Friday, 9 January 2026

Ottery is Not flashy. Not trendy. Functional, well-located,quietly resilient suburb of Cape Town

Houses for Sale in Ottery, Cape Town: Prices, Value, and What Buyers Should Expect

Ottery is one of those Cape Town suburbs that does not shout for attention. It does not need to. Buyers who understand value, space, and location keep coming back to it.

If you are searching for houses for sale in Ottery, Cape Town, you are likely looking for one thing: a solid family home at a price that still makes sense.

Here is how the market actually works.

Why Buyers Choose Ottery

Ottery sits in a strategic position in the Southern Suburbs.

It offers quick access to the M5 and M3. It is close to Claremont, Kenilworth, Lansdowne, and Wynberg. Schools, shopping centres, places of worship, and public transport are all nearby.

For many buyers, Ottery is not about lifestyle branding.
It is about convenience, space, and affordability.

That combination keeps demand steady.

Current House Prices in Ottery

The Ottery property market is mainly freehold houses. New developments are limited, which keeps existing homes in demand.

Entry-Level Homes (± R1.7m – R2.0m)

Mostly 2–3 bedroom houses
Older properties
Smaller plots
Often require renovations

These homes sell quickly because they offer an affordable entry into the Southern Suburbs market.

Mid-Range Family Homes (± R2.0m – R2.6m)

This is the most active price band.

3-bedroom family homes
Larger erven
Garages or secure parking
Some homes include pools or entertainment areas

Competition is strongest here. Well-priced properties often receive multiple enquiries within days.

Upper-End Homes (± R2.6m – R3.2m+)

4 to 6 bedrooms
Bigger homes with extensions or flatlets
Dual-living potential
Better finishes and security

Buyers at this level tend to compare Ottery with Grassy Park, Lansdowne, and parts of Plumstead. Pricing has to be realistic to secure a sale.

What Makes a House in Ottery Good Value

Not all homes in Ottery perform equally.

Value is driven by:

Street location
Parking and access
Approved building plans
Usable outdoor space
Potential for future improvements

A well-located 3-bedroom home with parking will always outperform a larger but poorly positioned property.

What Buyers Should Watch Out For

Ottery has many older homes. That comes with risks.

Unapproved extensions and flatlets
Outdated electrical or plumbing systems
Overcapitalised renovations
Noise and traffic in certain pockets

A good price means nothing if the property creates problems later.

Is Ottery a Good Investment Area?

Ottery is not a speculative market.

It is a stable, demand-driven suburb.

Rental demand remains strong
Family tenants stay longer
Capital growth is steady, not explosive

The best-performing properties are:

3-bedroom homes
Houses with flatlets
Properties close to schools and transport

Buy correctly and Ottery works. Overpay and it does not.

Final Word

Ottery appeals to buyers who value practicality over perception. Space over status. Access over aesthetics.

That is why houses for sale in Ottery continue to attract serious buyers year after year.

If the price is right, hesitation costs you the deal.

Lake Properties Pro-Tip

In Ottery, street selection matters more than house size. Before making an offer, check traffic flow, parking congestion, and neighbouring properties. A slightly smaller home in the right street will always outperform a bigger house in the wrong one.

Wednesday, 7 January 2026

What Is the 2% Rent Rule in Property Investment in Cape Town

The 2% rent rule is a quick test property investors use to judge whether a rental property has a chance of producing strong cash flow.

It is not a valuation tool.
It is not a guarantee.
It is a filter.

And it is deliberately strict.

The Rule Explained Simply

A property meets the 2% rent rule if the monthly rental income equals at least 2% of the purchase price.

Example:

Purchase price: R1,000,000
Target rent: R20,000 per month

If the rent hits that number, the property passes the test.

If it doesn’t, most cash-flow-focused investors move on immediately.

Why Investors Use the 2% Rule

Investors use this rule because it answers one question fast:

“Does this deal even deserve my time?”

It helps you:

Eliminate low-yield properties quickly
Avoid emotional buying
Focus on income, not just capital growth

In competitive markets, speed matters. This rule creates discipline.

The Hard Truth About the 2% Rule

The 2% rule is brutal by design.

In reality:

Most properties fail it
Especially in premium cities and lifestyle markets

It also ignores key costs:

Bond repayments
Interest rates
Municipal rates and taxes
Maintenance and repairs
Levies and body corporate fees
Vacancy risk

So passing the 2% rule does not mean the deal is profitable.
Failing it does not mean the deal is bad.

It just tells you where to look closer.

Does the 2% Rule Work in South Africa?

Yes—but not everywhere.

In Cape Town, especially the:

City Bowl
Atlantic Seaboard
Southern Suburbs

Most properties sit between 1% and 1.3% rental yield.

A deal achieving 1.5% or more is already considered strong in these areas.

Properties that hit 2% usually come with compromises:

Location further from economic hubs
Smaller units
Higher tenant turnover
More management intensity

Where the 2% Rent Rule Makes Sense

The rule is more realistic in:

Entry-level housing markets
Student accommodation
Multi-let or dual-income properties
Backyard or granny-flat setups
Value-add renovations

These strategies trade simplicity for yield.

When the 2% Rule Is the Wrong Tool

If your strategy is:

Long-term capital growth
Lifestyle property investment
Short-term or Airbnb rentals
Blue-chip suburb exposure

The 2% rule will reject almost every good opportunity.

That does not make it wrong.
It makes it irrelevant for that strategy.

The Smarter Way to Use the 2% Rule

Use it as:

A first filter
Not a final decision

Once a property passes:

Run a full cash-flow analysis
Stress-test interest rates
Factor in vacancies and maintenance
Compare net yield, not gross rent

Professional investors never stop at one metric.

Lake Properties Pro-Tip

In Cape Town, chasing the 2% rent rule blindly will push you into the wrong suburbs for your long-term goals.

Instead, aim for balanced deals:

1.3%–1.6% rental yield
Strong tenant demand
Proven capital growth nodes

Cash flow keeps you afloat.
Location builds your wealth.

Get both right—and the numbers start working for you.

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

Can you legally buy an RDP house from a seller or housing beneficiary in Cape Town

Can you legally buy an RDP house from a seller in Cape Town? Most buyers get this wrong.

The short answer is no. Not unless strict legal conditions are met. Ignore this and you risk losing your money, the property, or both.

RDP houses are not ordinary property.
They are state-subsidised homes issued under South Africa’s housing programme. Because public money paid for them, the state controls how and when they can be sold. That control sits on the title deed. It does not fall away because the owner wants to sell or needs cash.

The eight-year resale restriction is the first wall.
For the first eight years after allocation, an RDP house may not be sold. Full stop. Any private sale during this period is illegal. No conveyancer can register it. The Deeds Office will reject it. If you pay anyway, you do not become the owner. You become an unlawful occupant with no title rights.

This is common in Cape Town.
Buyers see listings in areas like Delft, Khayelitsha, Philippi, Mitchells Plain, and even parts of the Southern Suburbs. Prices look cheap. R200,000 to R400,000. Cash deals. Fast handovers. No agents. No lawyers. These are red flags. Most of these houses are still within the restriction period.

After eight years, the state still comes first.
Even once the eight years have passed, the owner cannot sell freely. The Western Cape Department of Human Settlements has the first right to buy the property back. The seller must apply for permission to sell. If the department waives this right in writing, only then can the house be sold to a private buyer.

No waiver means no legal sale.
A verbal approval is meaningless. A WhatsApp message means nothing. Without written confirmation, transfer cannot happen.

Title deeds are another major problem.
Many RDP houses in Cape Town still do not have title deeds issued. Some remain registered in the name of the state. Others are stuck in administrative backlogs that can take years to resolve. If the seller does not have a title deed in their name, there is nothing to transfer to you. Paying before title exists is reckless.

Occupation does not equal ownership.
Living in the house does not protect you. Renovating it does not protect you. Paying municipal bills does not protect you. If the sale is illegal, the state can reverse it. You may be forced to vacate. You will not be compensated for improvements. The law does not side with buyers who enter unlawful transactions.

Banks will not touch these deals.
You cannot get a home loan on a restricted RDP property. You cannot refinance it. You cannot sell it easily later. That kills resale value and traps your capital. What looks like a bargain becomes an illiquid asset with legal risk attached.

This is what you should do before even discussing price.
Ask for the title deed. Check the registration date. Confirm that at least eight years have passed. Demand written confirmation from Human Settlements that their first right to buy has been waived. Instruct a conveyancing attorney before you pay anything. If any document is missing, walk away.

If the seller pushes urgency, offers a cash discount, or says “everyone does it,” you are being set up to absorb their problem.

Lake Properties Pro-Tip
If a property in Cape Town cannot be transferred legally today, it is not an investment and it is not a bargain. It is a liability wearing a low price tag. Always buy title, not promises.

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

www.lakeproperties.co.za

info@lakeproperties.co.za

083 624 7129

Tuesday, 6 January 2026

How do you keep you garden and plants hydrated and in top condition over the summer months, in Cape Town

Your garden survives a Cape Town summer or it doesn’t. There is no middle ground.

Here is how you keep it hydrated and looking sharp when the heat and wind hit.

Water deep. Stop watering often.
Shallow watering fails in Cape Town. It trains roots to sit near the surface, where heat and wind kill them fast.
You water two to three times a week. No more. Each session must soak at least 25 to 30 cm into the soil.
If the soil is dry below your hand depth, you are wasting water.
Next step: Cut daily watering. Increase depth immediately.

Water early. Always.
Midday watering evaporates before it helps the plant. Evening watering can invite disease.
Early morning works because the soil absorbs water before heat and wind strip it away.
Next step: Set irrigation to finish before 8am.

Mulch everything that matters.
Bare soil is a mistake in this climate.
A 7 to 10 cm mulch layer can cut water loss by more than 40 percent in peak summer heat.
It also keeps roots cooler during 35 degree days.
Next step: Mulch all beds. Leave gaps around stems.

Fix the soil or keep paying for it.
Cape Town soil is often sandy. Water runs straight through it.
Compost changes that. It holds moisture longer and feeds roots steadily.
Gardens with compost need fewer watering cycles. That is measurable, not theory.
Next step: Work compost into beds now. Do not wait for winter.

Block the South-Easter.
Wind dries plants faster than sun.
If leaves look burned even though the soil is wet, wind is the problem.
Temporary shade cloth or permanent hedging solves it.
Next step: Protect exposed areas before the next heatwave.

Use drip irrigation. Skip sprinklers.
Sprinklers lose water to wind and evaporation. Drip systems deliver water where it matters.
That is why drip systems outperform sprinklers under water restrictions.
Next step: Convert high-use zones first. Lawns last.

Choose plants that belong here.
Indigenous and Mediterranean plants survive with less water because they evolved for this climate.
Exotics demand more water and fail faster under stress.
Next step: Replace high-maintenance plants as they die. Do not replant the same mistake.

Raise your mower blade.
Short lawns cook. Longer grass shades roots and holds moisture longer.
A lawn cut too low will need more water and still look worse.
Next step: Raise the blade. Water once or twice a week, deeply.

Feed lightly or not at all.
Heavy feeding in summer forces soft growth that burns in heat and wind.
Strong plants grow slower and survive longer.
Next step: Pause aggressive feeding until temperatures drop.

Watch daily. Act early.
Morning wilt means water now. Afternoon wilt can be heat stress, not drought.
Yellow leaves often mean too much water, not too little.
Next step: Adjust fast. Damage compounds quickly in summer.

Lake Properties Pro-Tip:
A well-managed garden adds real buyer appeal in Cape Town. Deep watering, mulch, and wind protection keep plants green through summer viewings. Buyers notice healthy gardens. They also notice dying ones. The difference shows up in offers.

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 Propertie

ww.lakeproperties.co.za info@lakeproperties.co.za

083 624 7129

Monday, 5 January 2026

Abandoned Houses in Cape Town: What Buyers and Investors Need to Know

Abandoned houses in Cape Town continue to attract attention from buyers looking for bargains and investors hunting for high-return opportunities. With property prices rising across much of the metro, the idea of finding a neglected or abandoned home at a below-market price is appealing. However, the reality is more complex — and often far riskier — than most people realise.

At Lake Properties, we regularly speak to buyers who believe abandoned houses are an easy entry point into the Cape Town property market. In practice, genuinely abandoned properties are rare, heavily regulated, and usually come with legal, financial, and structural complications that can outweigh the perceived savings.

Do Abandoned Houses Still Exist in Cape Town?

Yes, abandoned houses do still exist — but they are not sitting openly on the market waiting to be picked up.

In most cases, these properties fall into one of the following categories:

Long-vacant homes tied to deceased estates
Properties affected by ownership disputes or missing title deeds
Homes with substantial municipal rates and service arrears
Buildings that are uninhabitable or non-compliant with zoning and building regulations
Properties informally occupied after being neglected by owners

In high-demand areas, abandoned homes are quickly identified by neighbours, developers, or the City of Cape Town. If a property remains neglected for a long period, there is almost always a legal or financial reason.

Where Abandoned and Neglected Homes Are Commonly Found

While there is no public register of abandoned houses for sale in Cape Town, neglected and distressed properties tend to surface in:

Older suburbs with aging housing stock
Inner-city fringe areas undergoing regeneration
Areas where affordability pressures are high

These properties are often marketed not as “abandoned,” but as fixer-uppers, renovation projects, or investment opportunities — and this distinction matters for buyers.

For active listings, buyers should focus on verified platforms such as our Houses for Sale in Cape Town page, where all properties are properly vetted and legally marketable.

Why Buying an Abandoned House Is Not as Simple as It Sounds

The biggest mistake buyers make is assuming the purchase price reflects the true cost.

Hidden risks include:

Structural issues caused by years of neglect
Illegal building additions with no approved plans
Outstanding municipal debt that transfers with the property
Squatter or unlawful occupant eviction processes
Delays in transfer due to estate or title complications

Without professional guidance, what looks like a bargain can become an expensive, drawn-out project with no guaranteed return.

A Smarter Alternative: Distressed and Fixer-Upper Properties

At Lake Properties, we guide clients away from informal abandoned properties and towards legitimate distressed sales. These include:

Deceased estate properties with clear authority to sell
Bank-assisted or repossessed homes
Homes requiring renovation but with clean legal standing

These opportunities are far safer, easier to finance, and far more predictable from a return-on-investment perspective.

If you are considering an investment purchase, our Property Investment Opportunities in Cape Town section is a better starting point than chasing abandoned buildings with unclear ownership.

Who Should Consider Buying a Neglected Property?

Buying a neglected or semi-abandoned home makes sense for:

Experienced investors with access to capital
Buyers who understand renovation costs and timelines
Those working with an estate agent who knows the local area intimately

First-time buyers and under-capitalised investors should proceed with extreme caution.

If affordability is your main concern, you may be better served by exploring Affordable Houses for Sale in Cape Town rather than high-risk abandoned properties.

The Role of an Experienced Estate Agent

An experienced estate agent does more than find listings. At Lake Properties, we:

Identify off-market distressed opportunities
Verify title deeds, zoning, and municipal compliance
Flag legal and financial red flags early
Negotiate realistic prices based on renovation scope

This level of due diligence protects buyers from costly mistakes that are common in abandoned or neglected property purchases.

Lake Properties Pro-Tip

A neglected house can be a smart investment. A legally abandoned house rarely is. At Lake Properties, we focus on properties that are tradable, financeable, and compliant — because no discount is worth years of legal trouble. If the deal relies on shortcuts, missing paperwork, or informal arrangements, walk away.

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

Sunday, 4 January 2026

The Company’s Garden in Cape Town: A Living Witness to the City’s Origins

The Company’s Garden is not just another green space in Cape Town’s CBD. It is where the city quite literally began to feed itself. Long before Cape Town became a modern metropolis, this stretch of land at the foot of Table Mountain was a working garden, carved out of necessity rather than beauty.

When Jan van Riebeeck and the Dutch East India Company (VOC) arrived in 1652, the Cape was never intended to be a city. It was a pit stop. Ships travelling between Europe and the East Indies needed fresh food, clean water, and a place to recover from months at sea. The Company’s Garden was established to solve that problem. It produced vegetables, fruit, herbs, and medicinal plants for sailors suffering from scurvy and malnutrition. Survival, not aesthetics, drove its creation.

In those early years, the garden was tightly controlled. It was fenced, guarded, and run with military precision. Slaves, indigenous Khoi labourers, and Company employees worked the land under harsh conditions. This is an uncomfortable but unavoidable part of its history. The Garden was productive, but it was also a symbol of colonial power and control over land and labour.

As the Cape settlement stabilised in the late 1600s, the Garden began to change. Under governors like Simon van der Stel, food production slowly gave way to experimentation and beauty. Exotic plants were introduced, oak trees were planted along what is now Government Avenue, and the Garden became a place of scientific interest. Botanists used it to catalogue South African flora long before conservation was a concept. In this phase, the Garden became both practical and prestigious — a reflection of European order imposed on African soil.

By the 18th and 19th centuries, Cape Town had outgrown its original purpose. Farms outside the city took over food production, and the Garden shrank as land was claimed for churches, government buildings, museums, and Parliament. The British, after taking control of the Cape, further reshaped it into a “pleasure garden” — a space for walking, reflection, and public use rather than work. This marked a fundamental shift: the Garden stopped feeding ships and started serving people.

The 20th century cemented the Company’s Garden as a civic and cultural space. Memorials were added, including the Delville Wood War Memorial. Roses, lawns, ponds, and shaded benches transformed it into a quiet refuge from an increasingly busy city. In 1962, it was declared a National Monument, acknowledging that its value was no longer agricultural, but historical and symbolic.

Today, the Company’s Garden is a rare thing: a calm, green sanctuary surrounded by power. Parliament, museums, courts, and historic institutions all border it. It tells the full, unfiltered story of Cape Town — from colonial ambition and exploitation to public space, preservation, and shared heritage. It is not perfect, and it should not be romanticised without context. But it remains one of the most important pieces of land in South Africa’s urban history.

You are not just walking through a park when you enter the Company’s Garden. You are walking through layers of economic survival, colonial expansion, scientific curiosity, political authority, and modern urban life — all compressed into a few hectares of green.

Lake Properties Pro-Tip

When assessing property in or around Cape Town’s CBD, proximity to long-established heritage spaces like the Company’s Garden matters more than buyers realise. These areas are highly protected from over-development, maintain long-term desirability, and anchor surrounding property values. History stabilises real estate — trends don’t.

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

Friday, 2 January 2026

Why living in a Wendy House Is Not a Smart Alternative to Buying a Brick and Motor House in Cape Town

As property prices in Cape Town continue to rise, many buyers—especially first-time homeowners—start searching for cheaper housing alternatives. One option that often comes up is living in a Wendy house instead of purchasing a brick house for sale in Cape Town.

At Lake Properties, we deal with these questions daily. While a Wendy house may look affordable upfront, the long-term reality is far less appealing.

Here’s the honest truth.

Wendy Houses Are Not Built for Permanent Living

In South Africa, a Wendy house is generally classified as a temporary or ancillary structure. They are commonly used as garden rooms, storage units, home offices, or staff accommodation—not as permanent homes.

Most Wendy houses:

Are not designed to meet full residential building standards
Do not qualify as primary dwellings under Cape Town zoning laws
Cannot easily be upgraded to meet long-term living requirements

A brick house, by contrast, is built for durability, safety, and permanent occupation.

Legal and Compliance Risks in Cape Town

One of the biggest mistakes buyers make is assuming they can legally live in a Wendy house without consequences.

In Cape Town, permanent occupation usually requires:

Approved building plans
Compliance with zoning and land-use regulations
Electrical and plumbing certification

Without these, homeowners risk:

Municipal fines or enforcement action
Forced removal of the structure
Serious complications when selling the property

Brick homes already comply—or can be made compliant—making them the safer legal choice.

Comfort, Space, and Lifestyle Limitations

Cape Town’s climate is demanding, with:

Cold, wet winters
Hot summer temperatures
Strong coastal winds

Most Wendy houses suffer from:

Poor insulation
Temperature extremes
Noise penetration
Damp and condensation

Even upgraded Wendy houses struggle to deliver the comfort, space, and energy efficiency expected from a normal residential home.

The “Affordable” Option Often Costs More Than Expected

The low purchase price of a Wendy house is misleading.

To live in one properly, you still need:

Foundations
Plumbing and sewer connections
Electrical installation and compliance certificates
Insulation and weatherproofing
Security upgrades

Once these costs are added, many buyers realise they have spent a significant amount of money on a structure that still lacks long-term value.

No Capital Growth or Resale Value

This is a critical issue for property buyers.

A Wendy house:

Cannot be bonded by banks
Adds little to no resale value
Does not appreciate over time

A brick house in Cape Town, even in a more affordable area, offers:

Capital growth
Financing options
Strong resale demand

From an investment perspective, there is no comparison.

Insurance Challenges and Risk Exposure

Most insurance providers:

Refuse to insure Wendy houses as primary dwellings
Or offer limited cover with strict exclusions

This exposes homeowners to financial risk in cases of fire, storms, or theft. Brick homes are far easier to insure and protect.

When a Wendy House Does Make Sense

At Lake Properties, we do see Wendy houses used effectively as:

Backyard rental units (with municipal approval)
Home offices or studios
Temporary accommodation during renovations

However, they should always be secondary structures, not substitutes for a proper home.

Final Word from Lake Properties

If your goal is secure, legal, comfortable living with long-term value, living in a Wendy house instead of buying a brick house for sale in Cape Town is not a smart move. It may feel like a shortcut—but it often becomes an expensive detour.

A brick home remains the most reliable path to stability, value, and peace of mind.

Lake Properties Pro-Tip

If budget is your main concern, don’t compromise on the type of home—adjust the location, size, or condition. There are still affordable brick houses for sale in Cape Town that offer legal compliance and long-term growth. A qualified Lake Properties agent can help you find options buyers often overlook

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

Monday, 29 December 2025

Areas to Be Careful of When Buying a House in Cape Town – And Why It Matters

Cape Town remains one of South Africa’s most desirable property markets, attracting homebuyers, investors, and semigrants year after year. However, not every area that looks affordable or well-located is a smart property purchase. Buying in the wrong area can expose you to crime, slow resale, low capital growth, and rising long-term costs.

If you’re planning to buy a house in Cape Town, understanding which areas require caution — and why — is critical.

1. High-Crime Areas on the Cape Flats

Certain areas on the Cape Flats require extreme caution when buying property, particularly for buyers unfamiliar with local dynamics.

These include:

Nyanga
Manenberg
Hanover Park
Delft
Philippi
Parts of Khayelitsha and Mitchells Plain

Why buyers should be careful:

High levels of violent and gang-related crime
Lower buyer demand outside the immediate community
Difficulty reselling unless priced well below market value
Higher insurance premiums and limited cover options
Reduced appetite from banks for home loan approval in some pockets

While there may be exceptions on a street-by-street basis, these areas generally offer weak long-term property growth and poor liquidity.

2. Transitional or Mixed-Use Suburbs

Some suburbs in Cape Town sit in a transitional phase — neither fully upgraded nor entirely run-down. These areas can perform very differently from one street to the next.

Examples include:

Maitland
Salt River
Elsies River
Parow Valley
Parts of Kraaifontein
Blue Downs

Why caution is needed:

Crime levels vary block by block
Industrial zones impact noise, traffic, and lifestyle
Capital growth is inconsistent
Poor street choice can significantly reduce resale value

In these suburbs, local knowledge is essential. Buying on the wrong street can turn a good-looking deal into a long-term liability.

3. Areas Close to Informal Settlements

Properties located near informal settlements often struggle to achieve strong appreciation, even when the homes themselves are well maintained.

Key concerns:

Pressure on municipal infrastructure and services
Slower property price growth
Higher security concerns
Limited appeal to future buyers

Proximity matters. Two homes a few streets apart can perform very differently purely due to surrounding development.

4. Inner-City and CBD Pockets

The Cape Town CBD, Woodstock, and parts of Salt River remain popular for investment, but not all buildings are equal.

Risks include:

Increased petty crime after hours
Poorly managed body corporates
Older buildings with rising maintenance costs
High tenant turnover in poorly secured blocks

Inner-city buying only makes sense when security, access control, and building management are strong.

5. Coastal “Bargain” Properties

Seaside homes are highly desirable, but buyers should be cautious of older or low-lying coastal properties.

Common issues:

Salt corrosion increasing maintenance costs
Damp and flooding risks
Higher insurance premiums or exclusions
Structural wear often underestimated by buyers

A coastal location does not guarantee good value if upkeep costs continue to rise year after year.

Why Area Choice Is More Important Than the House

One of the biggest mistakes buyers make is focusing on the property itself while ignoring the neighbourhood. In Cape Town, location quality directly affects safety, resale value, rental demand, and capital growth.

You can renovate a house.
You cannot renovate an area.

Lake Properties Pro Tip

If a property seems cheap compared to surrounding suburbs, ask why. In Cape Town, affordability is often linked to crime risk, resale difficulty, or weak long-term growth. Always evaluate your exit strategy first — the best property is one that others will still want to buy from you in the future.

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

Sunday, 28 December 2025

Bank Repossessed Houses for Sale in St James, Cape Town: What Buyers Need to Know

Searching for bank repossessed houses for sale in St James, Cape Town is a common strategy among buyers hoping to secure a bargain in a prime coastal suburb. The idea is appealing: buy below market value in one of the most desirable seaside areas on the False Bay coastline. The reality, however, is more nuanced.

Are There Bank Repossessed Houses in St James?

In short, bank repossessed properties in St James are extremely rare.

St James is a small, high-value coastal suburb known for its historic homes, tidal pool, and proximity to Kalk Bay and Muizenberg. Properties here typically sell in the upper price brackets, and when owners face financial pressure, homes are usually sold privately long before a bank steps in.

Banks prefer this outcome too. In high-demand areas like St James, a traditional sale almost always recovers the outstanding bond faster and with fewer legal costs than a repossession.

Why You Don’t See Many Repossessed Properties in St James

There are several reasons repossessed homes seldom reach the open market in this suburb:

Strong buyer demand means properties sell quickly
High market values reduce the risk of negative equity
Banks intervene early, encouraging voluntary sales
Auction stock is redirected to areas with higher default rates

As a result, most bank repossessed houses in Cape Town are found in more affordable suburbs, not premium coastal nodes like St James.

Where Bank Repossessed Properties Are Usually Found

Buyers looking for repossessed homes will have better success in:

Outer Southern Suburbs
Northern Suburbs
Cape Flats areas
Certain sectional title developments

These areas see a higher volume of distressed sales, and banks often release stock through sheriff auctions, online property auctions, or repossessed property portals.

What You’ll Find in St James Instead

While repossessed homes are scarce, St James consistently offers:

Well-maintained period homes
Renovated coastal properties
Investment homes with strong rental demand
Long-term capital growth potential

Prices are typically market-related, reflecting the suburb’s lifestyle appeal, sea views, and limited supply.

Important Considerations When Buying Repossessed Property

If you do pursue bank repossessed properties elsewhere in Cape Town, keep in mind:

Properties are usually sold voetstoots (as-is)
Outstanding rates, levies, or compliance issues may apply
Renovation costs can erode “discounted” pricing
Legal due diligence is critical before making an offer

A low purchase price does not automatically mean good value.

Lake Properties Pro-Tip

In premium suburbs like St James, chasing repossessed properties is often a dead end. Buyers are usually better off negotiating smartly on well-priced private listings, where clean titles, approved plans, and faster transfers reduce risk. At Lake Properties, we focus on identifying real value opportunities — not just cheap properties — in high-demand Cape Town suburbs where long-term growth actually holds.

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

Saturday, 27 December 2025

Is It Safe to Buy a Damaged House Directly from an Owner in Cape Town

Lake Properties Lake Properties

Buying a damaged house in Cape Town can look like a bargain on paper—especially when the seller is dealing directly and there’s no estate agent involved. Lower asking price, no commission, quicker deal. That’s the appeal.

The reality is less glamorous.

While it can be done safely, buying a damaged property directly from an owner without professional guidance exposes you to serious financial, legal, and structural risks. For most buyers, it’s not just risky—it’s a costly mistake waiting to happen.

Understanding What “Damaged” Really Means

A damaged house doesn’t always mean peeling paint or a cracked tile. In Cape Town, damage often includes:

Structural movement or foundation cracks
Roof leaks or timber rot
Damp and rising moisture
Outdated or unsafe electrical and plumbing systems
Unapproved alterations or additions

Many of these issues are not visible during a casual walk-through. Once transfer is complete, those problems become yours—legally and financially.

The Valuation Trap

Without an estate agent or professional valuer:

You have no reliable benchmark for market value
Repair costs are often underestimated
Sellers may price emotionally, not realistically

Buyers frequently discover they paid “below market value” only to spend more than expected on repairs—wiping out any perceived savings.

Legal and Compliance Risks in Cape Town

Private sales often fall apart or become expensive because buyers overlook:

Missing or unapproved municipal building plans
Outstanding rates and taxes
Zoning or land-use restrictions
Required compliance certificates (electrical, plumbing, gas, beetle)

An estate agent usually manages these issues upfront. Without one, you are responsible for discovering them before it’s too late.

Structural Problems Are the Biggest Threat

Structural defects are common in older Cape Town homes and coastal properties. Cracks, subsidence, or roof failure can cost hundreds of thousands of rands to repair—and some banks won’t finance such properties at all.

Without a structural engineer’s report, you are guessing. Guessing is not a strategy.

Financing and Insurance Complications

Most banks:

Refuse bonds on severely damaged homes
Require repairs before registration

Insurance companies may:

Exclude existing defects
Charge higher premiums
Decline cover entirely until repairs are completed

This leaves buyers forced into cash purchases or stuck with an uninsurable asset.

Negotiation Without Expertise

When you negotiate directly with an owner:

You lack comparable sales data
You don’t know true buyer demand in the area
You have no professional buffer between emotion and facts

Estate agents exist to remove emotion from pricing. Without that, buyers often overpay—or fail to negotiate essential protections into the offer to purchase.

When Buying Direct Might Make Sense

Only under strict conditions:

You are a cash buyer
You commission independent inspections (structural engineer, valuer, builder)
You use a qualified conveyancing attorney
You understand the post-renovation resale value
You are prepared to walk away

Even experienced investors do not skip professionals—they simply use them selectively.

The Bottom Line

Buying a damaged house directly from an owner in Cape Town without professional assistance is high risk. Any savings made on commission can be wiped out by hidden defects, legal complications, or repair overruns.

For most buyers, professional guidance is not a luxury—it’s protection.

Lake Properties Pro-Tip

A “cheap” damaged property is only a good deal if the numbers work after repairs, compliance, and resale value. At Lake Properties, we help buyers assess true market value, uncover hidden risks, and negotiate from a position of knowledge—before you sign anything that could cost you years of regret

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

Wednesday, 24 December 2025

Be Clear on What’s Included in the Sale When Buying or Selling a House in Cape Town

Lake Properties Lake Properties

Be Clear on What’s Included in the Sale When Buying a House in Cape Town

When buying a house in Cape Town, it’s easy to get caught up in the excitement of finding the right area, negotiating the price, and picturing yourself living in the home. What many buyers only realise too late is that not everything you see during a viewing automatically forms part of the sale. Failing to clarify this upfront can lead to frustration, unexpected costs, and even legal disputes.

Being clear on what’s included in the sale is not a small detail—it’s a critical part of buying property in Cape Town.

Why This Issue Comes Up So Often

During viewings, buyers naturally assume that items already installed in the home will remain. Sellers, on the other hand, may have every intention of taking certain items with them. Without a clear written agreement, both parties believe they are right.

In a competitive Cape Town property market, these misunderstandings often surface late in the process—sometimes just days before transfer—when emotions and financial pressure are already high.

Fixtures vs Fittings Explained Simply

South African property law distinguishes between fixtures and fittings, and this distinction matters.

Fixtures are permanently attached to the property and are generally included in the sale. These usually include built-in cupboards, kitchen units, bathroom fittings, and wall-mounted lighting.
Fittings are movable items and are typically excluded unless specifically stated. Examples include loose furniture, freestanding appliances, curtains, and outdoor décor.

The challenge is that many modern homes blur the line. Items such as air conditioners, solar systems, alarm equipment, fibre installations, and irrigation systems are not always clearly defined unless they are listed in writing.

Common Items Buyers Should Clarify

When buying a house in Cape Town, these items often cause confusion:

Built-in and freestanding kitchen appliances
Curtain rails, blinds, and shutters
Alarm systems, cameras, and electric fencing
Fibre, satellite dishes, and TV brackets
Solar panels, inverters, batteries, and generators
Boreholes, JoJo tanks, and irrigation systems
Garden sheds and Wendy houses

If an item adds value to the home, it should be discussed and documented.

The Offer to Purchase Is Not a Formality

The Offer to Purchase (OTP) is the legally binding document that determines what stays and what goes. Verbal assurances mean nothing once the OTP is signed. If an item is not listed as included, the seller is usually entitled to remove it.

Buyers should take time to read the OTP carefully and ensure all agreed inclusions and exclusions are clearly stated. Rushing this step can be expensive.

How Buyers Can Protect Themselves

Ask specific questions during the viewing
Request a written list of inclusions and exclusions
Avoid assumptions based on appearances
Review the Offer to Purchase line by line
Work with an experienced Cape Town property agent

With many Cape Town homes featuring high-value additions like solar power and advanced security systems, clarity is more important than ever.

A Small Detail That Can Cost You Big

Replacing items you assumed were included can add significant, unplanned costs after transfer. More importantly, disputes over inclusions can delay transfer or derail a deal entirely.

Clear communication upfront saves money, time, and stress—and keeps the transaction professional.

Lake Properties Pro-Tip

When buying a house in Cape Town, list every item you expect to stay in the Offer to Purchase—especially high-value features like solar systems, air conditioners, security equipment, and blinds. If it’s important to you, put it in writing. At Lake Properties, we insist on total clarity upfront to protect our clients and keep property transactions smooth and dispute-free.

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

Tuesday, 23 December 2025

Understanding Municipal Rates When Buying or Selling a House in Cape Town

Whether you are buying or selling a house in Cape Town, understanding municipal rates can save you money, delays, and unnecessary stress.

What Are Municipal Rates in Cape Town?

Municipal rates are a monthly property tax charged by the City of Cape Town. These rates fund essential services such as road maintenance, refuse removal, sewerage, parks, and community infrastructure.

Rates are not based on the selling price of the property. They are calculated using the City’s municipal valuation, which often differs significantly from market value.

This disconnect is where many buyers and sellers get caught out.

How Municipal Rates Are Calculated

Your municipal rates bill is determined by:

The municipal valuation of the property
The City of Cape Town rates tariff
The property type (freehold, sectional title, investment property, etc.)
Any applicable rebates or exemptions

Municipal valuations are reviewed periodically, and increases can be sharp. A property bought at a good price can still attract high monthly rates if the valuation is elevated.

What Buyers Must Check Before Making an Offer

If you are buying a house in Cape Town, municipal rates should form part of your affordability assessment.

Before signing an offer to purchase, buyers should:

Request the latest municipal rates statement
Confirm average water, sewerage, and refuse charges
Check whether a valuation objection has been lodged
Budget for future annual rate increases

Ignoring these costs can turn an affordable purchase into a monthly burden—especially for first-time buyers and investors.

What Sellers Often Overlook

When selling a property in Cape Town, municipal rates can directly affect how quickly the deal goes through.

Sellers must:

Ensure rates and services are fully up to date
Pay several months of charges in advance for the rates clearance certificate
Resolve billing disputes before transfer begins

Unpaid or disputed municipal accounts are one of the most common causes of transfer delays in Cape Town.

Rates Clearance Certificates Explained

A rates clearance certificate is issued by the City of Cape Town and confirms that:

All municipal charges are settled
No outstanding debt exists on the property

Without this certificate, transfer cannot proceed. There are no exceptions.

Why Municipal Rates Matter in Today’s Market

In a price-sensitive Cape Town property market:

Buyers scrutinise monthly running costs
High rates can reduce buyer demand
Investors factor rates directly into rental yield
Incorrect assumptions can derail negotiations late in the process

Municipal rates are not a technical detail—they are a real cost that influences value, affordability, and saleability.

Lake Properties Pro Tip

Before listing your property or making an offer, verify the municipal valuation and current rates account—don’t rely on estimates or outdated figures. At Lake Properties, we identify municipal rate issues early to avoid transfer delays, renegotiations, and deal-breaking surprises. Clean numbers close deals faster

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

If you have a house in Cape Town fully paid.Can you put it up as security for another property which I may intend buying

Yes — you can use a fully paid-off house in Cape Town as security (collateral) to buy another property. This is a common financing strategy in South Africa and is often used by investors or homeowners who want to expand their property portfolio.

Here’s how it works:

✅ How Using Your Paid-Off Property as Security Works

1. You apply for a new bond

You tell the bank that instead of using the new property as the only security, you want to use your existing fully paid-off home as additional or primary security.

2. The bank values your paid-off property

They will send a valuer to determine its market value.
The bank then decides how much they are willing to lend based on that value (typically up to 70%–80%, depending on the bank and risk profile).

3. The bank registers a bond over your current house

Even though it’s fully paid off, the bank will register a bond on it for the amount they approve.

4. You use that bond to purchase the new property

The money released from the equity in your existing home becomes your financing for the new home.

🧮 Example

Your current home is worth R1,500,000.
No bond on it.
Bank allows you to borrow up to R1,000,000 against that property.
You use that R1,000,000 as a bond for the purchase of your next house.

Your existing home becomes the security for the loan.

⚠️ Important Things to Know

1. Your existing home will be at risk

If you cannot repay the bond on the new loan, the bank can claim the property used as security — even the one you already own outright.

2. Your affordability still matters

The bank will still check:

your income,
credit score,
expenses, and
debt-to-income ratio.

The security alone is not enough — you must qualify for the repayments.

**3. You may choose to use both properties as security**

Some banks offer cross-collateralisation — meaning both properties secure the entire loan structure.

4. This method can eliminate the need for a large cash deposit

Useful if you're buying an investment property or upgrading but don’t want to sell your existing home.

🏡 Lake Properties Pro-Tip

Using your paid-off property as security is a powerful wealth-building strategy, but don’t overextend yourself. Banks will often give you high access to equity — only take what you truly need. A good agent and a bond originator can help you structure the finance smartly so you grow your portfolio safely.

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