1 — Financial Analysis
Calculated net yield after all costsInclude vacancy, agent fees, rates, levies, maintenance, insurance.
Calculated monthly cash flow (rent minus bond minus all costs)Know your monthly shortfall or surplus before you buy.
Confirmed cash available for transfer costs + depositTransfer costs cannot be bonded — you need cash.
Projected 10-year total returnCapital growth + rental income + bond paydown equity. Use our ROI Calculator. Stress-tested at prime + 2%What happens to your cash flow if rates rise another 2%?
2 — Financing
Got pre-qualification from a bond originator (ooba / BetterBond)Free service — submits to multiple banks simultaneously.
Checked your credit score (TransUnion / Experian)SA banks require a minimum score of around 620–650 for investor bonds.
Deposit is confirmed and availableMinimum 10–20% for investment property. More deposit = better rate.
Calculated DSR (all debt repayments as % of gross income)Must be below 30% including the new bond repayment.
Compared at least 2 bank offers via originator
3 — Property Due Diligence
Obtained the title deed and confirmed no encumbrancesYour conveyancing attorney will do this — but confirm it is done.
Confirmed zoning permits residential letting
Had a professional property inspection doneRoof, plumbing, electrical, geyser age, damp, cracks.
Checked electrical compliance certificate (COC) validity
Checked plumbing compliance certificate (where applicable)
Confirmed rates account is up to date (no arrears)Municipal arrears transfer with the property in some cases.
Checked geyser age and conditionBudget R15,000 replacement if older than 8 years.
Inspected roof conditionRoof replacement is one of the biggest unexpected costs.
4 — Sectional Title Additional Checks
Obtained last 3 years of body corporate financialsCheck for deficit, unpaid levies by other owners, and reserve fund balance.
Checked for any pending special leviesA special levy for major maintenance could cost R20,000–R80,000.
Checked for any body corporate litigation
Confirmed levies in writing and checked increase history
Reviewed complex rules regarding pets, Airbnb, parking
Assessed quality of managing agent running the complex
5 — Location & Market
Compared rental rates for similar properties in the areaConfirm the rental you are projecting is realistic, not optimistic.
Assessed vacancy risk in the areaCheck online listings — how many similar properties are sitting vacant?
Assessed area trajectory (improving or declining?)
Identified target tenant profileProfessional, family, student, corporate? This drives your investment decisions.
Checked proximity to schools, transport, hospitals, shops
Checked Lightstone or Propstats for comparable recent sales
Verified the asking price is fair relative to recent comps
6 — Tax & Legal
Confirmed ownership structure (personal / company / trust)Each has different tax implications for rental income, CGT and estate planning.
Calculated CGT liability on eventual sale under current structureUse our CGT Calculator. Checked Section 13sex eligibility (5+ new units)Potential 5% annual deduction on building cost for 20 years. Use our Section 13sex Calculator. Confirmed income tax treatment of rental income with tax practitioner
Chosen a reputable conveyancing attorney
Reviewed the Offer to Purchase carefully before signingCheck suspensive conditions, voetstoots clauses, and fixtures included.
7 — Post-Purchase Preparation
Decided on self-manage vs managing agent
Selected a reputable managing agent if applicableVerify they are registered with NAMA and have good references.
Prepared a standard lease agreement (RHA compliant)
Set up a dedicated deposit account (interest-bearing, as required by law)
Obtained landlord insurance and building insurance
Planned ingoing inspection process with written checklist
Set up a maintenance reserve fund (separate bank account)Target: 1% of property value per year. Automate a monthly transfer.