Buying land comes with costs beyond the listing price.
Between making an offer and occupying a newly built home, there are nearly a dozen other expenses.
When you add them up, can you afford to buy land and build a home?
The Cost of Buying Land in South Africa
You find a gorgeous plot of land for what you think is unbelievable value.
It’s something you can afford.
But these are the expenses you need to consider:
The cost of Building a Home
Some lenders offer building loans that cover some part of the building process.
Whether or not you get a loan, you’ll encounter these costs once you start building.
Building plans and permits
If you start building on land without municipal permission, you’ll incur fines for illegal building work. The municipality may demolish what you’ve built.
Therefore, budget for building plans and building permits.
All building plans must be designed by a South African Council for Architectural Professions (SACAP) architect to get approval.
Municipal Connections
If there isn’t a water and electricity connection, you’ll pay for it.
Costs vary depending on the municipality.
Construction
Construction costs include laying a foundation, installing plumbing and electrical, roofing, and labour.
Typically, to reduce costs, builders may use lower-quality materials or carry out non-compliant work.
To avoid having to redo work later, get the certificate of compliance (COC) for all work being done on the home.
Certificate of Occupancy
The certificate of occupancy is the municipal go-ahead that your home is safe to live in. In municipalities like Tshwane, if your home passes the first inspection, the certificate is free. If it fails, you’ll have to pay for future inspections.
Before you buy land, research the costs involved in the municipality where you intend to make the purchase.
Be prepared to spend more.
Clearing land with overgrown vegetation adds to your expenses.
Building on a slope can also increase building costs by 20%.
You may go over budget due to weather delays or failing an inspection.
These are all expenses you should consider before you choose to buy land rather than purchase a house.
