Plenty of us are waiting with bated breath for housing prices to drop, but if you really want to buy a house, you’ll have to do a lot more than wait. Instead, you’ll need to start doing your homework.
1. Improve your debt-to-income (DTI) ratio.
If you’re planning a purchase, there’s ample time to make sure your credit score is as high as possible. Lenders assess your DTI ratio carefully – aim to keep total debt repayments below 30-35% of your gross monthly income to strengthen your bond application.
2. Save for more than just a down payment.
Skip the name brands and go no-frills for a while. Cut unnecessary spending. After all, buying a house is just the beginning; maintaining a house requires a different budget altogether. Budget for transfer duty, bond registration costs, attorney fees, and moving expenses.
On transfer duty, the good news for buyers is that the thresholds have held. SARS confirms that the transfer duty rates applying with effect from 1 April 2026 are unchanged from the previous year. The first R1 210 000 of the property value is taxed at 0%, so a property at or below that figure attracts no transfer duty at all. Above it the duty is charged in bands: 3% of the value above R1 210 000 up to R1 663 800; then R13 614 plus 6% of the value above R1 663 800 up to R2 329 300; then R53 544 plus 8% above R2 329 300 up to R2 994 800; then R106 784 plus 11% above R2 994 800 up to R13 310 000; and R1 241 456 plus 13% on the value above R13 310 000.
Because the bands are progressive, a small increase in purchase price near a threshold costs far less duty than people tend to assume. Transfer duty is also separate from your conveyancing fees and bond registration costs, so budget for all three.
3. Shop for bonds.
The next step is to get the very best offer possible for bond rates and terms, and the best way to do this is to start shopping around for bonds. Get a pre-approved bond with the best interest rates at the best bank now. A pre-approval gives you certainty on what you can afford and puts you in a stronger negotiating position. For an introduction to the legal side of the transfer process, see our beginner’s guide to conveyancing.
4. Choose an agent who knows your future neighbourhood.
Last, but not least, you should get a professional agent on your side. This can be a bit like dating; you may kiss some frogs before you find the perfect match. Once you’ve got the right agent in your corner, it’s just a matter of time before moving into your dream home becomes a reality. First-time buyers especially benefit from reading up on property law tips for first-time buyers.
Check the Fidelity Fund Certificate before you sign anything
Since the Property Practitioners Act 22 of 2019 came into operation on 1 February 2022, the legal term is no longer “estate agent” but “property practitioner”, and the change is more than cosmetic. Section 56(1) provides that a property practitioner is under no circumstances entitled to any remuneration or other payment arising from the performance of those functions unless, at the time of performing them, the practitioner, and every director or member where the practitioner is a company or close corporation, was in possession of a Fidelity Fund certificate.
The Act puts teeth behind that. Under section 56(5), a conveyancer may not pay any remuneration to a property practitioner unless the practitioner has handed over a certified copy of a Fidelity Fund certificate valid both during the transaction and on the date of payment. Commission paid to a practitioner who was not entitled to it must be paid over to the Fidelity Fund under section 56(3), and an affected purchaser or seller has three years to claim it from the Fund. Asking to see a current certificate at the outset costs you nothing and is the single cheapest piece of due diligence in the whole transaction.
Insist on the mandatory disclosure form
Section 67 of the same Act introduced a mandatory disclosure form, and buyers should know how it works. A property practitioner may not accept a mandate unless the seller has given them a fully completed and signed disclosure form in the prescribed format, and the practitioner must give a copy of it to any prospective purchaser who intends to make an offer.
The critical provision is section 67(2). The completed form, signed by all relevant parties, must be attached to the sale agreement and forms an integral part of it. If the form was not completed, signed or attached, the agreement must be interpreted as if no defects or deficiencies of the property were disclosed to the purchaser. In other words, a missing disclosure form works against the seller, not the buyer. Section 67(5) also confirms that none of this stops you from commissioning your own inspection at your own cost before finalising the transaction, which remains a sensible step whatever the form says.
Buying or selling a property – we’ve got your back! Our Conveyancing Department has earned the reputation of being one of SA’s best!
Updated 14 April 2026 – Updated the transfer duty exemption threshold to R1 210 000 (effective 1 April 2025) and expanded DTI guidance and pre-approval advice.
Updated 22 September 2026 – Confirmed against SARS that the transfer duty rates applying from 1 April 2026 are unchanged, with the first R1 210 000 at 0%, and set out the full band table up to the 13% rate above R13 310 000. Added the Property Practitioners Act 22 of 2019 requirements that matter to a buyer: the section 56(1) rule that a property practitioner without a valid Fidelity Fund certificate is not entitled to any remuneration, the section 56(5) bar on a conveyancer paying commission without a certified copy of that certificate, and the section 67 mandatory disclosure form, including the section 67(2) consequence that where the form is missing the sale agreement is interpreted as if no defects were disclosed to the purchaser.
