Shared Equity Calculator South Africa
Co-buying a property? Calculate ownership split, monthly payments per partner, buyout costs, and exit scenarios including CGT and transfer duty
| Item | Partner A | Partner B | Total |
|---|---|---|---|
| Deposit Contribution | R 150 000 | R 50 000 | R 200 000 |
| Monthly Income | R 45 000 | R 30 000 | R 75 000 |
| Ownership Share | 61.7% | 38.3% | 100.0% |
| Monthly Bond Payment | R 9 686 | R 6 021 | R 15 706 |
| Equity Value (at purchase) | R 1 110 000 | R 690 000 | R 1 800 000 |
Understanding Co-Ownership in South Africa
Co-ownership (undivided shares) means both parties own a percentage of the property jointly. South African banks register a joint bond with joint and several liability — both partners are each 100% liable for the full bond amount if the other defaults.
Current split: Partner A 61.7% / Partner B 38.3%. This is registered in the Deeds Office. A co-ownership agreement should be drawn up by an attorney to govern payment responsibilities, what happens on default, and exit mechanisms.
Co-Buying Property in South Africa — How Shared Equity Works How to use • Formula • Example
How to Use This Calculator
Enter the property purchase price and each partner's deposit contribution and gross monthly income. Choose your preferred ownership split method: contribution-based (deposit + income-proportional bond responsibility), income-only, or equal 50/50. The calculator shows each partner's ownership share, monthly payment, and equity position.
Switch to the Exit Scenarios tab to model what happens if one partner buys out the other or the property is sold — including transfer duty on the buyout, CGT for each partner, and net proceeds.
How Co-Ownership Works in SA Law
Monthly Payment = Total Bond Repayment × Ownership %
Key legal points for SA co-owners:
- Undivided shares: Both owners share the entire property — you can't sell "your half" independently without the other's consent
- Joint and several liability: The bank can recover the full bond from either partner regardless of your internal split agreement
- Co-ownership agreement: Have an attorney draft one before signing — cover monthly contributions, default procedures, and exit rights
- Transfer duty: On a buyout, transfer duty applies on the value of the share being transferred
- CGT: Each partner calculates CGT separately on their ownership share when the property is sold
Worked Example
Lerato (earns R45,000/month) and Mpho (earns R30,000/month) buy a Cape Town apartment for R1,800,000. Lerato contributes R150,000 deposit; Mpho R50,000. Total deposit: R200,000. Bond: R1,600,000.
Using contribution-based split: Lerato's total contribution = R150,000 + (R1,600,000 × 60%) = R1,110,000. Mpho's = R50,000 + (R1,600,000 × 40%) = R690,000. Total = R1,800,000.
Ownership: Lerato 61.7%, Mpho 38.3%.
At 10.25% over 20 years, monthly repayment: ~R15,750. Lerato pays R9,718/mo, Mpho pays R6,032/mo.
If selling after 5 years at R2,400,000: Lerato nets approximately R450,000 (after agent, CGT), Mpho nets approximately R270,000. If Lerato buys out Mpho instead: buyout = R380,000 + R11,400 transfer duty + R22,000 conveyancing = R413,400 total.
Frequently Asked Questions
Can two unmarried people co-own a property in South Africa?
Yes. Any two (or more) persons can co-own property in South Africa as undivided shares, regardless of relationship or marital status. The ownership percentage is registered in the Deeds Office. Banks will assess a joint bond application based on both applicants' combined income and credit profiles. Both co-owners are jointly and severally liable — the bank can pursue either party for the full outstanding amount. A co-ownership agreement drawn up by an attorney is essential to govern contributions, default scenarios, and exit rights.
What happens to the shared property if one co-owner wants to sell?
In South Africa, neither co-owner can sell their undivided share to a third party without the other's consent — buyers generally won't purchase a share of a property they can't fully occupy or control. The options are: (1) one partner buys out the other (most common), (2) both agree to sell the full property and split proceeds, or (3) if no agreement is reached, either party can apply to court for a partition or licitation (forced sale) under the Partition of Land Act. A good co-ownership agreement should specify exit procedures before this becomes necessary.
What transfer duty applies when one co-owner buys out the other?
When one co-owner purchases the other's undivided share, transfer duty is levied on the value of the share being purchased. For example, if Partner B owns 40% of a R2,000,000 property (R800,000 share), transfer duty is calculated on R800,000 — which in 2026 falls below the R1,210,000 threshold and attracts zero transfer duty. If the share value exceeds the threshold, normal transfer duty rates apply. This is significantly cheaper than a full property re-purchase.
If one co-owner stops paying, is the other responsible?
Yes. Under the joint and several liability principle in South African law, if Partner A stops paying their portion of the bond, the bank will demand full payment from Partner B. Partner B must then pursue Partner A separately for their share. This is why a co-ownership agreement should include provisions for: what happens on default, the right to take over the bond, dispute resolution processes, and first right of refusal to buy the other out.
Can each co-owner claim the primary residence CGT exclusion?
Yes, provided the property is the primary residence of both co-owners. Each individual can apply the R2,000,000 primary residence CGT exclusion against their proportional share of the capital gain — but only one exclusion per property is allowed across all co-owners (unless they are married). In practice, for two unrelated individuals co-owning their shared home, the R2M exclusion applies to the combined gain from the property. Consult a tax advisor on your specific situation.