How much you need to earn to afford Princess Diana’s R150 million Constantia retreat

A piece of Cape Town property history could change hands for an eye-watering R150 million, but prospective buyers will need considerably more than a taste for luxury to afford it.

Tarrystone Estate, in the exclusive suburb of Upper Constantia, is reportedly being offered for sale off-market, with an expected price of around R150 million.

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The estate is associated with the late Princess Diana, who stayed there during visits to South Africa.

Its appeal goes beyond its royal connection, however, with an expansive property, private leisure facilities and a collection of African art.

For anyone considering a purchase at the reported price, the financial commitment would be enormous.

Set on 8 040m², Tarrystone is a substantial private estate featuring a main residence, guest cottages, two vineyards, a swimming pool, tennis court and private cinema.

One of its most distinctive features is a secluded thatched cottage where Princess Diana reportedly stayed. Her bedroom is said to have been preserved, adding to the property’s historical significance.

The estate was previously owned by Princess Diana’s brother, Earl Charles Spencer, who sold it in 2012.

The financial reality of buying the estate

At a reported price of R150 million, financing the purchase through a home loan would come with eye-watering monthly repayments.

Based on a prime lending rate of 10.75%, a hypothetical 100% bond would cost approximately R1.52 million per month over 20 years.

Extending the repayment period to 30 years would bring the instalment down to around R1.4 million.

Using an illustrative affordability guideline that limits bond repayments to 30% of gross monthly income, a buyer would need to earn approximately:

• R5.1 million per month for a 20-year bond
• R4.7 million per month for a 30-year bond

Bond affordability	Estimate
Property price	R150 million
Deposit	R0
Bond amount	R150 million
Interest rate	10.75%
Repayment term	20 years
Monthly bond repayment	R1 522 843
Required gross monthly income	R5 076 145

These estimates assume no deposit and an unchanged interest rate throughout the loan term. They are not a guarantee of finance approval, particularly for a property at this price level.

Banks would assess a buyer’s overall financial position, including existing debt, expenses, credit history and income.

The price of maintaining a luxury estate

The bond would be only one part of the cost of owning Tarrystone.

A buyer would also need to budget for transfer duty, legal and bond registration costs, insurance, municipal rates, security and the upkeep of an estate of this size.

Maintaining vineyards, guest accommodation, extensive grounds and private facilities would add to the ongoing expense.

The reported R150 million price therefore represents the starting point of a significant financial commitment.

For the eventual buyer, Tarrystone offers more than a luxury home in one of Cape Town’s most sought-after residential areas. It offers a property with a distinctive history and a connection to one of the world’s most recognisable royal figures.

Whether the estate achieves its reported asking price remains to be seen.