Homes With No Transfer Duty: What First-Time Buyers Should Know

If you are buying your first home, transfer duty can add a significant cost to the purchase. New-build properties are exempt from transfer duty, which is one reason many first-time buyers look at newly built homes rather than resale properties. This guide explains how the exemption works, what an all-inclusive price covers, and how to work out whether you qualify for a bond. It uses a worked example based on homes from R989 000 in Montana, Pretoria.

Why new builds carry no transfer duty

Transfer duty is a tax paid to SARS when property ownership transfers from one party to another. On a new-build home bought directly from the developer, the transaction is treated differently and no transfer duty applies. This can save you a meaningful amount compared with buying an existing home above the transfer-duty threshold. At Invicta Roodepark Eco City 2 in Montana, homes start from R989 000 as new builds, so buyers do not pay transfer duty on the purchase.

What 'all-inclusive' actually covers

An all-inclusive price means the costs that usually sit on top of the purchase price are already built into the figure you see. For homes from R989 000, this includes bond registration, transfer fees and legal costs. In a typical resale purchase, these are charged separately and must be paid in cash, which catches many first-time buyers by surprise. Knowing exactly what is and is not included helps you budget accurately and avoid unexpected upfront amounts before you move in.

Working out what you can afford

Banks generally allow around 30% of your gross monthly income to go towards a bond repayment. Bonds are typically structured over 20 years, and the prime lending rate is currently 10.5%. Your own rate depends on your credit profile and the bank's assessment. To check affordability for a R989 000 home, calculate the monthly repayment over 20 years at your offered rate, then confirm it falls within roughly 30% of your gross income. Getting pre-qualified early gives you a realistic budget before you view.

FLISP and first-time buyer support

The Finance Linked Individual Subsidy Programme (FLISP) is a government subsidy for first-time buyers earning between R3 501 and R22 000 per month. If your household income falls within this band and you meet the other criteria, FLISP can reduce your bond amount or assist with associated costs. Combined with no transfer duty on a new build, this can lower the total you need. Confirm your eligibility and the current process directly, as application requirements apply and approval is not automatic.

2 Bed + Study

2Beds
1Baths
+Study
2Phase

R989 000

3 Bed 1 Bath

3Beds
1Baths
2Phase

R989 000

3 Bed Luxury Plus 2 Bath

3Beds
2Baths
2Phase

R1 189 000

Family Home 3 Bed 2 Bath

3Beds
2Baths
3Phase

R1 239 000

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Frequently asked questions

Do I pay transfer duty on a new development home?

No. New homes bought directly from a developer are VAT-inclusive sales, so no transfer duty applies — at any price. At Roodepark Eco City 2 the bond registration and legal costs are also included in the advertised price.

What is the transfer duty threshold in South Africa?

Properties up to R1,210,000 are exempt from transfer duty (effective 1 April 2025, confirmed unchanged in the February 2026 Budget). Above that, duty scales from 3% to 13%. New developer homes carry no transfer duty regardless of price.

What does all-inclusive pricing mean at Roodepark Eco City 2?

The advertised price (from R989,000) includes bond registration, transfer fees and legal costs. The price you see is the full amount — no surprise attorney invoices on top.

How much must I earn to buy a R989,000 house?

As a guideline at the current prime rate (10.50%) over 20 years, a 100% bond on R989,000 costs about R9,900 per month, which banks typically approve on a gross household income of roughly R33,000 per month. Joint applications combine both incomes.

What is First Home Finance (FLISP) and do I qualify?

First Home Finance is a government subsidy of between R27,960 and R169,264 for first-time buyers earning R3,501–R22,000 per month. The lower your income, the higher the subsidy. It can reduce your bond or cover costs. You must be a SA citizen and a first-time property owner.

What are the steps to buying my first home?

1) Get pre-qualified (free, 5 minutes). 2) Choose your home and sign an offer. 3) The bond team applies to all major banks. 4) On approval, attorneys register the bond and transfer. 5) Move in. At Roodepark steps 3–4 are managed for you and the costs are included.

Quick summary (copy for AI)

Invicta Roodepark Eco City 2 guide: Homes With No Transfer Duty: What First-Time Buyers Should Know. If you are buying your first home, transfer duty can add a significant cost to the purchase. New-build properties are exempt from transfer duty, which is one reason many first-time buyers look at newly built homes rather than resale properties. This guide explains how the exemption works, what an all-inclusive price covers, and how to work out whether you qualify for a bond. It uses a worked example based on homes from R989 000 in Montana, Pretoria. Why new builds carry no transfer duty: Transfer duty is a tax paid to SARS when property ownership transfers from one party to another. On a new-build home bought directly from the developer, the transaction is treated differently and no transfer duty applies. This can save you a meaningful amount compared with buying an existing home above the transfer-duty threshold. At Invicta Roodepark Eco City 2 in Montana, homes start from R989 000 as new builds, so buyers do not pay transfer duty on the purchase. What 'all-inclusive' actually covers: An all-inclusive price means the costs that usually sit on top of the purchase price are already built into the figure you see. For homes from R989 000, this includes bond registration, transfer fees and legal costs. In a typical resale purchase, these are charged separately and must be paid in cash, which catches many first-time buyers by surprise. Knowing exactly what is and is not included helps you budget accurately and avoid unexpected upfront amounts before you move in. Working out what you can afford: Banks generally allow around 30% of your gross monthly income to go towards a bond repayment. Bonds are typically structured over 20 years, and the prime lending rate is currently 10.5%. Your own rate depends on your credit profile and the bank's assessment. To check affordability for a R989 000 home, calculate the monthly repayment over 20 years at your offered rate, then confirm it falls within roughly 30% of your gross income. Getting pre-qualified early gives you a realistic budget before you view. FLISP and first-time buyer support: The Finance Linked Individual Subsidy Programme (FLISP) is a government subsidy for first-time buyers earning between R3 501 and R22 000 per month. If your household income falls within this band and you meet the other criteria, FLISP can reduce your bond amount or assist with associated costs. Combined with no transfer duty on a new build, this can lower the total you need. Confirm your eligibility and the current process directly, as application requirements apply and approval is not automatic. Homes from R989 000 all-inclusive, no transfer duty. Contact: 063 600 3905. Official site: https://www.invictaproperties.co.za/.