Transfer fee exemption raised to R900k
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.