Ownership costs go beyond the mortgage payment.
HOUSING | SOUTH AFRICA — A home can be affordable on paper and still place a serious strain on a first-time buyer’s monthly cash flow. South African housing economists are urging households to look well beyond the asking price.
Why the affordability test is changing
An IOL Weekend Argus report published on July 25, 2026 cited economist Francois Viruly of Datazone, who argued that the true cost of housing includes transport, electricity, municipal charges, water, insurance and other unavoidable expenses. A conventional comparison of house price to salary misses much of that real-world burden.
The overlooked monthly costs
Mortgage installments are only the beginning. Rates and levies may increase, utilities can vary with the season, maintenance is irregular but unavoidable, and a home far from jobs may raise transport costs substantially. A property can have a lower purchase price and still be more expensive to live in when location and services are included.
What first-time buyers should calculate
Start with the mortgage payment under more than one rate scenario. Add taxes, municipal charges, insurance, utilities, routine repairs and expected commuting costs. Next, retain a cash buffer for moving costs, legal fees and unexpected problems after purchase. Finally, stress-test the budget if household income temporarily falls or one partner changes jobs.
Why renting can also be difficult
The same household cost pressures reach renters through service charges, utility bills and transport. Comparing the monthly rent with a mortgage payment alone is not enough. Buyers acquire an asset and assume maintenance and interest-rate risks; renters generally preserve more mobility but have less control over future occupancy costs.
What is still uncertain
The right choice depends on neighborhood, financing terms, available savings and time horizon. A nationwide claim that all first-time buyers have been priced out would be too broad. Local property markets differ, and mortgage availability can change.
The money consequence
Before buying, use a total-cost-of-living spreadsheet rather than a loan calculator alone. The most attractive home is not necessarily the one a bank will lend the most money against; it is the one that leaves enough room for daily life, savings and surprises.
Source
IOL / Weekend Argus, July 25, 2026. Published as a housing affordability explainer, not breaking news.
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