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BREAKING: Transfer fee exemption raised to R900,000

this Circa 1904 Melville Gem. The three bedroom and two bathroom home offers beautiful pressed ceilings, a wood burning fire place, Oregon pine strip floors, chandeliers, sash windows, artistic lead glass doors, Victorian baths and a wraparound patio amongst others. There is also a study/library, along with a lounge, large dining room and country style kitchen with Range master gas cooker. The home is on sale for R2.5 million.

The exemption on government-charged transfer fees has been raised by R150,000 on the current R750,000. This was revealed today during Finance Minister Pravin Gordhan’s Budget Speech.

“Relief will be provided in the affordable housing market through an increase in the threshold above which transfer duty is paid from R750,000 to R900,000,” said the minister.

On paper this may sound like welcome relief, but in reality it will save buyers a maximum of R4,500 on purchases between R750,000 and R900,000.

Still, this is the price band in which the majority of the home buying market is still active and may be the difference of affordability or not.

Current estimated bond and transfer costs range between R40,900 and R48,600 in the price bands between R700,001 and R900,000. At the current top tier of R900,000, purchasers will from 1 March pay R44,100 in total bond and transfer costs to the attorneys and finance institutions involved in the transaction.

david.steynberg@gmail.com

David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

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