PROPERTY NEWS - With the transfer duty exemption threshold now set at R1.21m, many South Africans are finding renewed opportunities to enter the property market.
Industry experts share insights on how first-time buyers can use this advantage to set themselves up for long-term success.
Avoiding transfer duty can amount to tens of thousands of rands saved. According to Adrian Goslett, regional director & CEO of REMAX Southern Africa, this money can be used in several strategic ways, either to slightly increase their purchase budget, allowing them to target better-located properties or those with more long-term growth potential, or to cover additional home-buying expenses that are often overlooked, like bond registration fees, attorney costs, moving expenses, and even initial home improvements or furnishings.
That being said, finding a home under R1.21m is easier in some regions than it is in others.
For example, Barbara Larney, Broker/Owner of REMAX Wine and Whales, explains that in the Hermanus market, where properties below R1.21m are becoming scarce, first-time buyers are strategically leveraging the transfer duty exemption by targeting homes with strong renovation potential, especially in suburbs like Sandbaai.
“Although affordable listings are limited, these buyers prioritise value-add opportunities, focusing on properties they can upgrade to build equity over time,” she notes.
Other markets, like Gqeberha, offer more opportunities for young buyers. “The smartest strategy for first-time buyers is to view their starter home not just as a place to live, but as the beginning of a property investment portfolio,” says Kobie Potgieter, Broker/Owner of REMAX Independent Properties.
Gqeberha’s affordable market makes this strategy realistic. “Instead of needing to sell to afford their next property, buyers who aggressively reduce their bond can hold on to that first asset, which continues to appreciate and serve them financially for years to come. Your first property shouldn’t be your last – it should be your first investment,” she recommends.
In Gauteng, Nadia Aucamp, Broker/Owner of REMAX All Stars, shares these sentiments, adding that: “When buying, they should consider their future plans, especially how long they intend to stay in the property. If it’s a short-term investment, it’s wise to choose a home that will be easy to rent out later.
"For a long-term plan, they can focus more on a property that suits their personal needs, even if it may not have strong rental appeal. Strategic thinking now can ensure better financial outcomes later,” she says.
Finally, looking at the KZN North Coast, REMAX Dolphin Realtors says there are plenty of opportunities for first time buyers at this price point, especially in emerging North Coast nodes.
“We’ve guided many new buyers toward sectional title units and developments in growth nodes like Shakaskraal and Ballito Central, boasting entry-level developments such as Palm View Estate and Ballito Hills,” says Kim Peacock, Broker/Owner REMAX Dolphin Realtors
When making their first home purchase, REMAX Dolphin Realtors recommend the following:
- Prioritise location over size. Entry-level properties in appreciating areas offer stronger long-term gains.
- Focus on developments with low levies, good security, and proximity to main transport routes.
- Pre-qualify properly to understand total affordability. Don’t forget to plan for bond registration and legal costs.
For those looking to take their first step onto the property ladder, the transfer duty exemption offers a valuable opportunity to enter the market with greater financial flexibility.
“By making informed decisions and seeking guidance from experienced real estate professionals, first-time buyers can transform their starter home into a steppingstone for long-term wealth creation. With the right strategy in place, what begins as a first purchase can become the foundation of a secure and rewarding property journey,” Goslett concludes.
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