Ongoing Costs Calculators

What Does It Really Cost to Own a Home?

Many first-time buyers focus entirely on the monthly bond repayment when assessing affordability. This can lead to serious financial strain after moving in. A comprehensive budget should include all five major ongoing cost categories.

1. Municipal Rates and Taxes

Every property owner pays municipal rates (also called property rates) to their local municipality. The rate is calculated on the municipal valuation of your property, multiplied by the municipality's rates tariff. Rates vary significantly by municipality — City of Cape Town charges approximately R0.0089 per rand of value, City of Johannesburg approximately R0.0114, and eThekwini approximately R0.0093. On a R1.5 million home, annual rates can range from R13,000 to R17,000 depending on location.

2. Sectional Title Levies

If you own a unit in a sectional title scheme (apartment block, townhouse complex, or estate), you pay monthly levies. These cover the administrative levy (day-to-day running costs), reserve fund levy (future maintenance of common property), and sometimes a special levy for large unforeseen expenses. For a typical apartment, expect R1,500 to R4,000 per month. Premium security estates can charge R5,000 or more.

The Sectional Titles Schemes Management Act requires bodies corporate to maintain a reserve fund at a prescribed minimum level. Reserve fund contributions have been increasing as older buildings require more maintenance. When buying, always request the last three years of financials from the body corporate to assess the reserve fund health.

3. Home Maintenance

Industry wisdom suggests budgeting 1% of your property value per year for maintenance and repairs. On a R2 million home, that is R20,000 per year (R1,667 per month). This covers routine items like painting, plumbing repairs, appliance replacement, and garden maintenance. Older homes and those with complex features (pools, large gardens, thatched roofs) typically require closer to 1.5% to 2% annually.

4. Buildings Insurance

Your bond agreement requires you to maintain adequate buildings insurance. This covers the structure of your home (not contents) against fire, flood, storm damage, and related perils. Buildings insurance is based on the replacement value — what it would cost to rebuild from scratch — not the market value. Replacement costs in South Africa typically run from R8,000 to R15,000 per square metre depending on finishes and location. Premiums generally range from 0.1% to 0.3% of replacement value per year.

5. Homeowners Association (HOA) Fees

If your property is in a development governed by a Homeowners Association, you pay separate HOA fees for security, common area maintenance, garden services, and estate management. These are in addition to municipal rates. Estate HOA fees range from R500 per month in smaller developments to R3,000 or more in large lifestyle estates.