CrowdSquare - Invest in real estate online

Warning to South Africans: Hidden Costs of Buying a Home in a Security Estate

In 2025, the demand for homes in South Africa’s security estates has surged, especially among first-time buyers, retirees, and high-income families seeking lifestyle benefits, community living, and enhanced safety. However, while these developments offer an appealing lifestyle, property experts are warning prospective buyers to fully understand the total cost of ownership before signing on the dotted line.

Security estates and sectional title properties are becoming a preferred choice in South Africa's major urban and coastal areas. With the ongoing concerns around safety, gated communities that offer CCTV surveillance, biometric access, and communal amenities have become highly desirable.

Recent data from Lightstone revealed that out of the 274,500 property transactions in 2024, approximately 16% took place within security estates. These figures underline a growing trend, particularly in regions like Gauteng, the Western Cape, and the KwaZulu-Natal North Coast.

Despite the growing appeal, experts stress that buyers must not be swayed by lifestyle features alone. The financial implications stretch far beyond the listing price of the home.

While the base price of a property in a security estate can range from R800,000 in affordable segments to R20 million in luxury developments, buyers often overlook the numerous hidden and ongoing costs.

Some of the typical additional costs include:

• Bond Registration Fees: R52,000+

• Transfer Duties: R97,000+ (variable based on the purchase price)

• Moving Costs: Often R10,000 or more

• Utility Deposits: Typically start around R2,000

• Wi-Fi/Fibre Installation: R1,500–R5,000 upfront, plus monthly fees

• Homeowners Insurance: R500–R2,500 per month

• Monthly Levies: Can range from R1,000 to R5,000+ depending on amenities
  
  

This means that for a property priced at R2,250,000, buyers should budget an additional R200,000 to R250,000 in upfront costs alone.

Furthermore, the monthly levies charged by the Body Corporate or Homeowners' Association (HOA) can place a long-term burden on household budgets. These levies are intended to fund maintenance, security, and shared amenities but can increase yearly—sometimes well above inflation.

According to real estate professionals, many buyers enter the market with excitement and optimism but underestimate long-term affordability.

Prospective homeowners should:

• Review the estate's financial statements for levy escalation trends

• Inquire about reserve funds to ensure the estate is financially stable

• Evaluate maintenance plans to avoid surprise special levies

• Budget for ongoing costs like insurance, repairs, and security upgrades

Neglecting these factors can lead to financial strain, especially for first-time buyers or those without adequate financial buffers.

Buying into a security estate can be a smart lifestyle and investment decision—but only if it’s financially sustainable. The upfront costs, levies, and long-term commitments make it essential for buyers to conduct thorough financial planning and not rely solely on the developer’s sales pitch.

As one expert put it, “Don’t just ask if you can afford the house—ask if you can afford to live in it for the next 10 years.”