Yesterday’s budget by Finance Minister Trevor Manuel failed to address the need for a more broad based overhaul of home buying costs says Martin Schultheiss, CEO of the Homenet Group.
“These costs inclusive of bond registration, transfer duty and conveyance fees, work out at 6-8% of the price of the property.
“By contrast figures we have researched show that in the UK, the home buyer can expect to pay about 1,4% in costs inclusive of legal fees, search fees (involving a deed search in local council records), Inland Revenue Stamp Duty land tax, bank transfer fees and land registration.
“It’s also notable that the interest portion of bond repayments in the UK is tax deductible, something should have been considered for this budget up to a level of say, R1m in property value to encourage first timer home ownership.
“At the very least, such as a concession to private property investors who let properties below a certain monthly rental, could assist in solving the current housing shortage.”