Payment plans
How you pay for an off-plan purchase
Four structures, from a standard 10% deposit with the balance on transfer, to staged interest-free developer instalments that reduce your bond.
Compare
Four payment structures
Standard Off-Plan Plan
- Deposit
- 10%
- During construction
- 0% — balance secured by bond grant or bank guarantee
- On completion
- 90% on transfer
- Best for
- Buyers with bond pre-approval who want minimum cash outlay before occupation
Staged Developer Plan
- Deposit
- 15% over three months
- During construction
- 25% in interest-free quarterly instalments
- On completion
- 60% on transfer
- Best for
- Cash-strong investors wanting a lower bond and stronger day-one yield
Investor 50/50 Plan
- Deposit
- 20% on signature
- During construction
- 30% at topping-out
- On completion
- 50% on transfer
- Best for
- Non-resident buyers limited to 50% local loan-to-value
Cash Buyer Plan
- Deposit
- 10% on signature
- During construction
- 0%
- On completion
- 90% on transfer — 3% to 5% developer discount negotiable
- Best for
- Cash purchasers seeking maximum price advantage
Bond finance
Indicative monthly repayments
| Purchase price | Deposit (10%) | Bond amount | Monthly repayment | Total over 20 yrs |
|---|---|---|---|---|
| R 1 000 000 | R 100 000 | R 900 000 | R 9 443 | R 2 266 393 |
| R 1 600 000 | R 160 000 | R 1 440 000 | R 15 109 | R 3 626 229 |
| R 2 500 000 | R 250 000 | R 2 250 000 | R 23 608 | R 5 665 982 |
| R 4 000 000 | R 400 000 | R 3 600 000 | R 37 773 | R 9 065 572 |
| R 7 500 000 | R 750 000 | R 6 750 000 | R 70 825 | R 16 997 947 |
Modelled at the prime lending rate of 11.25% over 20 years with no rate concession. Banks frequently price prime less 0.25% to 1.00% for strong applicants, which materially reduces these figures.
Costs
What else you pay
Buying from a VAT-registered developer means VAT is included and no transfer duty is levied.
Transfer attorney fees on a R1m to R4m purchase, including deeds office and FICA costs.
Payable to the bond attorney where finance is registered against the property.
Body corporate levy plus municipal rates, payable from occupation date.
Protection
Where your deposit sits
Deposits are paid into a Section 78(2A) interest-bearing attorney trust account, invested in the purchaser's name with interest accruing to you until transfer. Funds are only released to the developer on registration of transfer in the Deeds Office. Every development we represent is enrolled with the NHBRC, which carries a five-year structural defect warranty and a three-month roof leak warranty from occupation.