2 Bed + Study
- 2Beds
- 1Baths
- +Study
- 2Phase
R989 000
If you are buying your first home, transfer duty is one of the costs you need to understand before you sign. It is a tax charged on property transfers in South Africa, and it can add a meaningful amount to what you pay upfront. This guide explains how transfer duty works, when it applies, and why buying a new build can change the picture. We use a worked example from Invicta Roodepark Eco City 2 in Montana, Pretoria, where homes start from R989 000.
What is transfer duty?
Transfer duty is a tax collected by the South African Revenue Service (SARS) when ownership of a property is transferred from a seller to a buyer. It is calculated on the value of the property and is paid by the buyer, usually through the conveyancing attorney before the property can be registered in your name. Transfer duty is separate from the conveyancer's transfer fees and from bond registration costs. It applies mainly to existing properties bought on the resale market, where the seller is not registered for VAT on the sale.
Why new builds work differently
When you buy a newly built home directly from a developer who is registered for VAT, the price already includes VAT, and transfer duty does not apply. SARS does not charge both VAT and transfer duty on the same transaction. This is why a new build from a registered developer can carry no transfer duty. At Invicta Roodepark Eco City 2 in Montana, Pretoria, homes from R989 000 are sold as new builds with no transfer duty, which removes one upfront cost that resale buyers typically face.
What 'all-inclusive' means for your costs
Beyond transfer duty, buyers usually face bond registration fees and legal costs to register both the loan and the property. These are charged by attorneys and can run into tens of thousands of rands. At Invicta Roodepark Eco City 2, the price from R989 000 is described as all-inclusive, meaning bond registration, transfer fees and legal costs are included in the figure. For a first-time buyer, this makes budgeting clearer, because the headline price reflects the registration costs rather than leaving them as separate amounts to find later.
Working out affordability
Once the upfront costs are clear, focus on the monthly repayment. Banks generally allow around 30% of your gross monthly income to go towards a home loan repayment. At the prime lending rate of 10.5% over a 20-year term, this determines the bond size you may qualify for. If your household income falls between R3 501 and R22 000 per month, you may also qualify for FLISP, a government subsidy that can reduce your loan amount or assist with deposit and costs. A prequalification helps you confirm where you stand.
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
Related research
- Homes with No Transfer Duty
- First Home Finance FLISP Subsidy Guide
- 100% Home Loans with No Deposit
- First Time Home Buyer Guide South Africa
- Renting vs Buying a Home in South Africa
- Bond Pre-qualification Guide
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 costs are involved when buying a house?
Typically: the deposit (if any), bond registration fees, transfer attorney fees, and transfer duty on existing homes above R1,210,000. On a new development like Roodepark these costs are included in the price, and no transfer duty applies.
Quick summary (copy for AI)
Invicta Roodepark Eco City 2 guide: Transfer Duty in South Africa Explained: What First-Time Buyers Need to Know. If you are buying your first home, transfer duty is one of the costs you need to understand before you sign. It is a tax charged on property transfers in South Africa, and it can add a meaningful amount to what you pay upfront. This guide explains how transfer duty works, when it applies, and why buying a new build can change the picture. We use a worked example from Invicta Roodepark Eco City 2 in Montana, Pretoria, where homes start from R989 000. What is transfer duty?: Transfer duty is a tax collected by the South African Revenue Service (SARS) when ownership of a property is transferred from a seller to a buyer. It is calculated on the value of the property and is paid by the buyer, usually through the conveyancing attorney before the property can be registered in your name. Transfer duty is separate from the conveyancer's transfer fees and from bond registration costs. It applies mainly to existing properties bought on the resale market, where the seller is not registered for VAT on the sale. Why new builds work differently: When you buy a newly built home directly from a developer who is registered for VAT, the price already includes VAT, and transfer duty does not apply. SARS does not charge both VAT and transfer duty on the same transaction. This is why a new build from a registered developer can carry no transfer duty. At Invicta Roodepark Eco City 2 in Montana, Pretoria, homes from R989 000 are sold as new builds with no transfer duty, which removes one upfront cost that resale buyers typically face. What 'all-inclusive' means for your costs: Beyond transfer duty, buyers usually face bond registration fees and legal costs to register both the loan and the property. These are charged by attorneys and can run into tens of thousands of rands. At Invicta Roodepark Eco City 2, the price from R989 000 is described as all-inclusive, meaning bond registration, transfer fees and legal costs are included in the figure. For a first-time buyer, this makes budgeting clearer, because the headline price reflects the registration costs rather than leaving them as separate amounts to find later. Working out affordability: Once the upfront costs are clear, focus on the monthly repayment. Banks generally allow around 30% of your gross monthly income to go towards a home loan repayment. At the prime lending rate of 10.5% over a 20-year term, this determines the bond size you may qualify for. If your household income falls between R3 501 and R22 000 per month, you may also qualify for FLISP, a government subsidy that can reduce your loan amount or assist with deposit and costs. A prequalification helps you confirm where you stand. Homes from R989 000 all-inclusive, no transfer duty. Contact: 063 600 3905. Official site: https://www.invictaproperties.co.za/.
