The property questions we hear most, answered.

As a rule of thumb, budget the deposit plus 8 to 10% of the purchase price for transfer duty, attorney fees, bond registration and moving costs. On a R2m home that is roughly R160,000 to R200,000 on top of the deposit. Some banks now offer 100% bonds to strong applicants, which reduces the deposit but not the transfer costs.

A bond originator submits your application to several banks in parallel, which usually results in a better interest rate. There is no cost to you because the bank pays the originator. Applying directly to only your own bank often leaves 0.25% to 0.5% on the table, which is meaningful over 20 years.

Transfer duty is a tax paid to SARS by the buyer on properties over R1.21m. It runs on a sliding scale from 3% up to 13%. Properties under R1.21m are exempt. New builds sold directly by a developer are usually subject to VAT instead of transfer duty.

From accepted offer to registration usually takes 8 to 14 weeks. Bond approval takes 1 to 3 weeks, and conveyancing another 6 to 10. Delays typically come from outstanding compliance certificates or municipal rates clearance.

An OTP is legally binding once signed by both parties. You can only walk away if a suspensive condition fails, such as bond approval within the agreed period. This is why every OTP should include bond approval and satisfactory inspection clauses.

Electrical, gas (where applicable), electric fence (where applicable), beetle (in coastal regions), and plumbing (in the City of Cape Town). The seller pays for these unless otherwise agreed in the OTP.

Older properties in established suburbs generally show stronger capital growth because land value appreciates. Newer properties have lower maintenance in the first years and often come with modern layouts, but you pay a premium for that. Match the choice to your holding period and appetite for maintenance.

Use recent actual sold prices in your street or complex, not asking prices. Two independent agent valuations are useful, but be wary of the highest number, which is sometimes used to secure the mandate. Overpricing costs time on market, which itself erodes final price.

A sole mandate for 60 to 90 days usually delivers the best price because the agent invests in marketing. Open mandates suit sellers who need urgency and are comfortable with variable service.

Since 2022, every seller must complete a Property Condition Disclosure Form disclosing known defects. Failing to disclose known issues exposes you to legal claims after transfer.

Capital gains tax applies to the profit on any property that is not your primary residence, and to profits above R2m on your primary residence. Keep records of purchase costs, renovation invoices and selling costs to reduce the taxable gain.

Small cosmetic upgrades (paint, garden, deep clean, lighting) almost always pay for themselves. Big renovations rarely do. Focus on presentation, not reconstruction.

Typically 8 to 14 weeks. You continue to be responsible for rates, levies and insurance until registration transfers.

Full-service management covers listing, marketing, pricing, tenant or guest screening, contracts, check-in and check-out, maintenance coordination, rent collection, monthly statements and financial reporting. You get one contact and one report.

Long-term rentals typically run at 8 to 10% of collected rent. Short-stay management runs at 15 to 25% depending on volume and services included. Advisory-only engagements are quoted per scope.

BookingLoop management agreements have a 30-day notice period on either side. There are no long lock-in contracts.

The owner. BookingLoop coordinates vetted contractors, obtains quotes, approves work within an agreed threshold and routes larger jobs to you for approval.

Long-term rentals are paid mid-month. Short-stay payouts are made monthly in arrears once guest funds have cleared the merchant account.

Yes. Owner blocks are built into the calendar for short-stay and holiday properties. You keep full control.

We follow up immediately, work with the tenant, and escalate through a defined process. Recovery specialists are engaged only after earlier steps have failed. Landlord insurance covering rental default is strongly recommended.

Zoning that permits guesthouse use, a business licence from your municipality, health and fire compliance, and Grading Council star grading if you want tourism recognition. Requirements differ per municipality, so verify with your local metro.

Yes, when occupancy sits above 55% at healthy nightly rates. The margin comes from disciplined pricing, direct bookings, tight cleaning costs and consistent 4.7+ reviews. A poorly run 4-room guesthouse can lose money even in season.

Both. Booking.com typically drives higher occupancy and more international guests. Airbnb converts better for unique or self-catering stays. Running both plus direct bookings maximises revenue and reduces platform risk.

Use dynamic pricing based on day of week, season, local events and forward pace. Static pricing leaves 15 to 30% on the table over a year.

Only if you understand hospitality standards. Small mistakes in linen quality, storage, lighting and welcome amenities show up in reviews immediately. Professional styling for hospitality use typically pays for itself in the first season.

Yes, short-term letting is legal nationally. However, individual municipalities are introducing local by-laws (Cape Town leads on this), and body corporates or estates can restrict or prohibit it in their conduct rules. Always check both before listing.

Yes. All rental income is taxable. You can deduct legitimate expenses (cleaning, linen, commissions, portion of utilities, wear and tear on furnishings, portion of levies and rates). Above R1m annual turnover you must register for VAT.

Yes, by amending the conduct rules with the required majority. Many complexes now restrict short-lets or set minimum stay periods. Read the current conduct rules before you buy, and treat verbal assurances as worthless.

Standard homeowner cover usually excludes paying guests. You need a specific short-term rental policy including guest liability, damage caused by guests, and public liability.

Collect only what you need (name, ID, contact), store it securely, use it only for the stated purpose, and delete it when no longer needed. A brief privacy statement in your check-in message covers most obligations.

Gross yield equals annual rent divided by property value. Net yield is (annual rent − all annual expenses) divided by property value. Net is what actually matters. Target 6%+ net in secondary cities and 4 to 5% in prime metros where capital growth compensates.

Personal ownership is simplest and cheapest. A company works well for multiple properties because interest and expenses are fully deductible. Trusts suit long-term estate planning. Get advice from a tax specialist before you buy, not after.

Depends on income requirement, gearing, and holding period. A common target is 5 to 8 fully paid, well-let properties producing net yield of 7% or better. Getting there takes time, disciplined reinvestment and avoiding underperforming assets.

Sometimes. Advantages: transfer duty savings (VAT-inclusive), modern stock, tenant appeal. Risks: developer delays, launch prices often inflated, rental assumptions optimistic. Always model realistic post-handover rentals independently.

Negative gearing is when rental income does not cover the bond and expenses. In South Africa the tax offset is limited, so relying on capital growth to compensate is risky. Only use it deliberately, with the income to sustain the shortfall.

Unfurnished is standard for family homes and 12-month leases. Furnished works for corporate lets, executive rentals and 3 to 6 month stays, and can command 30 to 50% more rent but comes with higher wear-and-tear and turnover.

Verify ID, credit report (TransUnion / Experian), employment and 3 months of bank statements. Speak to the previous landlord. Never skip screening to fill a vacancy quickly, a bad tenant costs more than an empty month.

Whatever both parties agree, typically one to two months' rent. It must be held in an interest-bearing account for the tenant. Interest is paid out at end of lease with the deposit.

Follow up in writing immediately. Issue a formal letter of demand after 7 days of arrears. If unresolved, cancel the lease and follow the PIE Act eviction process. Skipping steps invalidates the eviction and costs months.

Yes, at each renewal. Increases must be reasonable and typically track CPI (5 to 8%) unless the market has moved sharply. Excessive increases push good tenants to leave, which usually costs more than the increase gained.

1 to 2% of property value per year for newer properties, 2 to 4% for older ones. Big-ticket items (roof, geyser, paint) come in cycles, so budgeting annually smooths the impact.

Yes. A leaking geyser is both a compliance and habitability issue. Insurance covers most geyser replacements, check your policy for the accredited installer requirement.

At move-in with a signed condition report, every 6 months during the lease, and at move-out. This catches small issues before they become expensive.

It depends on the lease. In free-standing homes, tenants usually maintain routine work (mowing, pool chemicals). Owners handle major work (tree removal, pool pump). Spell it out clearly in the lease.

Highly recommended, especially for first-time buyers or unusual property types. An attorney review costs a small fraction of what a bad clause can cost.

A clause that must be met for the contract to become fully binding. Most common: bond approval within 21 days, satisfactory home inspection, sale of your existing property.

Without a will, the Intestate Succession Act determines who inherits, which is often not what you would have chosen. Every property owner should have an up-to-date will.

No. The PIE Act requires a court order for any eviction of an occupier, tenant or not. Self-help eviction is illegal and exposes you to significant damages.

For property sales, no, the Alienation of Land Act requires all property sale agreements to be in writing and signed. For leases, verbal agreements are technically valid but almost impossible to enforce.

Banks assess affordability (income vs. debt), credit score, deposit size, employment stability and property valuation. Your monthly bond repayment is typically capped at 30% of gross monthly income.

600+ is a working minimum. 700+ unlocks the best rates. Under 600 usually means declined or heavily conditional approval. Pull your report six months before applying and clean it up.

Larger deposit (20%+ makes a real difference), stronger credit score, applying via a bond originator to multiple banks, and using an established banking relationship. Even 0.5% saved is huge over 20 years.

Not directly, but you can take a housing loan against it (Section 19(5)). Discuss the tax implications with your fund administrator first.

A bond covering the full purchase price with no deposit. Available to strong applicants with clean credit and stable income. Interest rate is usually slightly higher than a bond with a deposit.

Highly recommended. Cost is R2,000 to R6,000 and can uncover roof, damp, electrical, plumbing and structural issues worth many multiples of that. Report findings can be used to renegotiate the price or require repairs.

Roof, ceilings, walls, floors, foundations, damp, plumbing, electrical, geyser, doors and windows, garage and outbuildings. They do not evaluate hidden defects or components requiring specialist testing.

Between OTP acceptance and expiry of the inspection suspensive condition, typically the first 7 to 14 days after signing. Never skip it to save time.

Negotiable. Common outcomes: seller repairs before transfer, price reduction, or buyer accepts the risk. Compliance certificate issues (electrical, gas, plumbing) are always the seller's cost.

You describe your need. BookingLoop introduces the right partner in your area, coordinates the initial engagement, and stays involved to ensure the work is done properly and priced fairly.

No. Referrals cost you nothing. Partners are charged directly for the work you engage them for, at market rates.

Registration where applicable (FFC, LPC, CIDB), insurance, references, track record and client feedback. Partners are removed for poor performance without exception.

Yes. Our network is a service, not a requirement. You choose who to work with; we coordinate around your team.

Complete the partner application on the Partner Network page. Approval typically takes 5 to 10 working days including reference checks.

BookingLoop works with clients across South Africa. Research is a core part of what we do, so where a market is new to us we study the location, demand and economics before advising, and we coordinate local specialists to execute.

Book a consultation through the contact form. Tell us what you are trying to achieve with your money or with a property you already own, and we will assess the market and outline what property strategy makes sense.

A structured assessment of your property's current income, costs, positioning and local demand, benchmarked against comparable properties in your area. It is free for owners considering our services.

Primarily residential, hospitality, student, corporate and holiday. We refer specialist commercial partners where relevant, and are expanding our commercial capability.

General enquiries within one working day. Urgent guest or tenant issues on managed properties are handled immediately by the on-duty team.

Yes. BookingLoop handles personal information in line with POPIA. We never share client data with third parties without consent, except where legally required.