Questions to ask and five red flags to watch out for before you enter the property market

Affordability is finally wobbling in the right direction in 2026 and suddenly the “maybe one day” bond dream seems more plausible.

Bradd Bendall, BetterBond’s national head of sales, says “several key indicators point to a property market in recovery”. The prime lending rate has dropped a cumulative 150 basis points since the end of 2023, which means homeowners are paying considerably less each month on their bond.

“For example, the monthly repayment on a R2-million home over 20 years at the current prime lending rate of 10.25% is R19,633 – a saving of about R2,000 a month compared with 2023, when prime was 11.75%. Over the full loan term, this adds up to almost R490,000 in interest savings.”

Five red flags to watch out for
Your budget only works at today’s interest rate. If the bond is affordable only at current prime, it’s actually not affordable.

🚩Forgetting the “cash splash” costs. Transfer duty (if applicable), conveyancing fees, bond registration, moving costs, alarm, a surprise locksmith visit… It’s no good if these costs wipe out your emergency fund.
🚩Levies and rates are vague. If the agent can’t give you clear, current figures (and the body corporate minutes don’t explain why levies keep climbing), treat it like a warning sign.
🚩The house looks great, but smells like future invoices. Damp patches, fresh paint “just in that one corner”, sagging ceilings, cracks you can fit a fingernail into, a roof that’s really old – these don’t add up to “character”, they’re costs.
🚩Services or infrastructure trouble. Constant water interruptions, unreliable electricity, poor road maintenance, sewage issues or constant security incidents can quietly crush the resale value of even the most gorgeous listing.

Before you start saving listings like it’s a hobby, run a quick reality audit. Here’s your Money Cents checklist.

Do a “can I still breathe?” budget. The prime lending rate may be 10.25% today, but what happens if it goes higher again? Could you still pay the bond if rates went up 1% or 2% (or when your petrol and groceries do their usual acrobatics)?

Determine monthly costs. Decide what you can afford per month first (bond + rates and taxes + levies + insurance + maintenance). Then work backwards. Pre-approval is protection.

Deposits are easing, but don’t arrive empty-handed. First-time buyer deposits have come down. But ask: if you put down less now, what does that do to
(1) your interest over 20 years, and
(2) your monthly repayment if rates change?

Check the “full cost of ownership” gremlins. Questions to ask yourself: do you have an emergency fund after transfer costs? Can you handle a surprise R15,000 to R30,000 expense (geyser, roof leak, burst pipe) without going into debt?

Location maths. High-demand areas can mean faster price growth, but also less stock and higher entry prices. Ask whether you are buying where you want to live, and whether you’ll actually be able to sell or rent out later.

Calculate solar benefits. If a place has a rooftop photovoltaic system (or is PV-ready), quantify it: what do you spend on electricity now, what’s the backup during outages, and will it reduce tenant churn if you ever rent it out? If it doesn’t add up, it’s just a shiny roof adornment.

Time your move like a grown-up, not a fortune teller. If more rate cuts happen, repayments may ease, but prices can also creep up and competition gets feistier. Ask whether you would rather lock in a home now at today’s price, or gamble on cheaper debt later with a potentially pricier property. DM

This story first appeared in our weekly DM168 newspaper, available countrywide for R35.