Budget Speech 2020 - Good News on Transfer Duty
Category Principal's Message
The real estate industry has enthusiastically welcomed the Budget Speech announcement by Finance Minister Tito Mboweni that no transfer duty will be payable on the purchase of property valued at under R1 million. The decision will likely boost the stagnant property market and benefit those looking to get their foot on the first rung of the property ownership ladder.
The increase in the transfer duty threshold provides a very positive incentive not only for first-time home buyers, but also others seeking affordably priced homes - a sector which represents a key driver in the current market.
Low- to middle-income price ranges, up to about R1.5 million, are likely to see higher price growth. But above that, it will be highly area dependent.
Upper-end property above R5 million will probably continue seeing flat price growth.
Consumers buying property valued between R1 000 001 and R1 375 000 will be liable to transfer duty costs of 3% of the property value.
Those purchasing a property between R1 375 001 to R1 925 000 will be charged R11 250 plus 6% of the total value of the property in transfer costs.
Wealthy spenders acquiring property valued above R11 million - will part ways with transfer duties of just over R1 million, plus 13% of the value of the property.
Author: Prime Property Marketing