Estate agents happy with Gordhan’s transfer duties exemption
Estate agents have welcomed the increase in the threshold for exemptions from transfer duties on properties to R900,000 (from R750,000), saying the move would provide some relief for first-time home buyers. This is despite the upward adjustment by Finance Minister Pravin Gordhan set to cost the fiscus R448m in foregone taxes. CEO of Jawitz Properties, Herschel Jawitz, said, "The increase in the threshold below which transfer duty is not payable by 20% from R750,000 to R900,000 is an exciting move by Treasury to encourage home ownership especially for first-time buyers. The 20% increase is way above the growth in property prices and will provide transfer duty relief of up to R4,500 for buyers at the R900,000 level." Jawitz added that at this level of the market, R4,500 is a meaningful amount which will pay towards other transaction costs. "Very often, first-time buyers qualify from an affordability point of view but don’t have enough for the transaction fees or deposit to buy a prope...
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