Is it better to buy or rent in Cape Town in 2025?

It depends on your timeline. For short-term (<7 years) or lifestyle living (Atlantic Seaboard), renting is significantly cheaper due to high property prices and 10.25% interest rates. Buying makes sense for long-term semigrators in areas with high capital growth like the City Bowl.

What is the current prime interest rate for bonds in Cape Town?

The Prime Lending Rate in South Africa is currently 10.25% (as of 2025). This means your monthly bond repayment will likely be double the capital amount over a 20-year term.

What are Sectional Title Levies in Cape Town?

Levies are monthly fees paid to the Body Corporate effectively for maintenance and security. In Cape Town, these are high, averaging R25-R35 per square meter. A 2-bedroom flat can easily have levies of R3,500+ per month, which is a sunk cost similar to rent.

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Q: What is the current prime interest rate for bonds in Cape Town?

The Prime Lending Rate in South Africa is currently 10.25% (as of 2025). This means your monthly bond repayment will likely be double the capital amount over a 20-year term.

Q: What are Sectional Title Levies in Cape Town?

Levies are monthly fees paid to the Body Corporate effectively for maintenance and security. In Cape Town, these are high, averaging R25-R35 per square meter. A 2-bedroom flat can easily have levies of R3,500+ per month, which is a sunk cost similar to rent.

⚠️ Reality Check: Buying property in Cape Town is trendy, but with 10.25% Interest Rates and High Levies, are you destroying your wealth? We run the numbers.

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