Property market welcomes increase in the exempt threshold for transfer duty

Posted On Friday, 27 February 2015 10:41 Published by
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In his speech yesterday, the Minister of Finance announced that “the rates and brackets for transfer duties on the sale of property will be adjusted to provide relief to middle-income households.”

Nhlanhla Nene

Taking the liberty to respond to this, ooba, South Africa’s biggest bond originator, announced that it welcomes the increase in the exempt threshold for transfer duty from R600 000 to R750 000 and other favourable reductions in the calculations in transfer duty announced in the Budget yesterday.  

 According to Kay Geldenhuys, Finance Manager at ooba, “the cheaper cost of acquiring a property is good news for homebuyers, particularly first-time homebuyers, who  comprise 54% of all buyers seeking finance through ooba.” In its latest property market statistics, January 2015 oobarometer, ooba noted that the average property purchase price in the first-time buyer’s market is R775 815, therefore this segment will particularly benefit from the relaxation in transfer duty costs.

 

Geldenhuys adds that “the South African property market outlook for 2015 is extremely positive with steady house price growth, stable and relatively low interest rates, favourable inflation outlook and increased lenders’ confidence. The relaxation in the transfer duty rates will therefore act as further stimulus for the property market.” 

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