What is overcapitalisation?

Author

MyProperty

Overcapitalisation is a situation where you make renovations or additions to a property that ensures your property’s value extends well beyond what buyers would pay to live in your suburb. How to avoid overcapitalisation One of the first and best things to do is to talk to your local real estate agent. They know the local market, and understand what will effectively add value. For example, there could be strong demand for homes with two living areas, necessitating a bedroom renovation rather than focusing on, say, a landscaping project. Also conduct market research on your suburb and neighbouring areas, to avoid overcapitalising beyond what buyers generally pay.

General Property News

Market & Opinion

Should you fix your home loan interest rate?

26 Jan 2026

Homeowners and prospective home buyers often consider fixing the interest rate on their home loans, and with inflation concerns, rising living costs, and an upcoming repo rate announcement, this has once again become a key talking point.

Market & Opinion

Selling your property in January: What you need to do now to get it right

20 Jan 2026

January has a reputation for being a quiet month in the South African property market, but that reputation is misleading. While buyer volumes may be lower than in peak seasons, the buyers who are active in January are often serious, prepared, and ready to move. For sellers, that makes January less about hype and more about execution.

Market & Opinion

Home loan checklist: Get pre-approved before February

13 Jan 2026

For many South Africans, the start of the year marks the time when serious home-buying decisions are made. January and February traditionally mark a period of renewed market activity, with new listings and motivated sellers. If you are planning to buy property in 2026, one of the smartest moves you can make is to get pre-approved for a home loan before February.

Market & Opinion

Affording a home in 2026 - the real numbers South African buyers need to know

08 Jan 2026

For most South Africans, buying a home in 2026 is no longer just about finding the right property; it’s also about navigating affordability in a high-cost, high-pressure environment. Food prices remain elevated, electricity and municipal charges continue to rise, and while interest rates have eased from their peak, they’re still high enough to shape what buyers can realistically afford.