Buying a home is an emotional milestone, but in South Africa it is also a financial minefield. Rising municipal rates, high levies, and volatile interest rates can trap the unwary.

Start with the bond. South African banks rarely lend more than 100% anymore, and interest rates are back at 11.75%. A repayment that looks manageable today can balloon if the SARB hikes again. Borrow less than you qualify for to create breathing space.

Factor in upfront costs. Transfer duty kicks in above R1.1 million, scaling steeply. On a R2 million home, duties and fees can top R80,000. Budgeting only for the deposit leaves too many scrambling later.

Ongoing costs are often overlooked. Sectional title properties carry monthly levies for maintenance, security, and insurance. Freehold homes face municipal rates and refuse charges. These costs climb annually, and failing to budget for them leaves homeowners squeezed.

Finally, remember that a house should fit into your wealth plan. It anchors you, but it must not choke your ability to invest in Tax Free Investments (TFSAs) or Exchange Transfer Fund (ETFs). Homeownership is rewarding, but overextending is a trap.