Low-Income Earners And First-Time Homebuyers Given A Better Chance To Become Homeowners Post The 2023 Budget Speech
The announcement by the Minister of Finance, Mr. Enoch Godongwane during the 2023 Budget Speech that the brackets of the transfer duty table will be increased by 10%, allowing properties below R1.1m to avoid any transfer duty payments will help make home ownership more accessible for first-time buyers.
Many first-time South African homebuyers found the motivation to buy during the COVID-19 lockdown, fuelled by low-interest rates and a desire to escape the urban centres. And while this drive and enthusiasm has somewhat diminished over recent months, there are still those who want to make homeownership a reality.
Denese Zaslansky, CEO of FIRZT Realty Company says, "It is important for first-time buyers to know that transfer duty is an additional cost that needs to be incorporated into your budget planning when purchasing a property.
It is not to be confused with 'transfer of property costs. This is a fee paid to the conveyancing attorney who transfers the property from the seller to the buyer, whereas transfer duty is a tax paid to SARS on the transfer of property.
Transfer duty is only payable on properties worth more than R1 100 000. If the property is less than that, you will still need to pay the conveyancing attorney for the transfer of property, but there will be no transfer duty tax."
A new report from OOBA finds that the first-time homebuyer tax credit had a short-term impact on the housing market. The study, which analysed home sales data in the six months following the end of the tax credit and compared it to six months prior, found that home sales rose by 6% in the six months after the credit ended. The report also found that while the credit sparked a rise in home sales, it did not have a significant impact on prices.
Buying a property during high inflation can be challenging, especially in South Africa. Buyers are still encouraged to save for a decent deposit and factor in pricing in interest rate hikes which is essential for all prospective home buyers in 2023. High inflation affects the value of a property and makes it more difficult to afford a home. However, it is still possible to make a successful property purchase during high inflation. With the brackets of the transfer duty table increasing by 10%, this is a window of opportunity for low-income earners to access home loans. This, coupled with the aid of government FLISP (Finance Linked Individual Subsidy Programme) programme makes acquiring a home a realistic prospect for low-income earners.
If you meet the criteria, the government provides you with money to help buy a home. This subsidy does not need to be paid back.
However, prospective homeowners will have to meet the following criteria:
ADVICE FOR BUYERS:
ABOUT FIRZT
Established in 2003 by Denese Zaslansky who is the current CEO and founder of Firzt Realty Company. Her knowledge, drive and determination have been the foundation on which the company's success has been built. They are dynamic and forward-thinking with the well-known crown and "Z" logo having become a familiar brand within Gauteng, as a result of their innovative and continuous brand building.
For more information and interview requests please contact:
Palesa Khambi - Head: Marketing and Communications
FIRZT Realty Company
palesa@firzt.co.za