Budget 2017
TRANSFER DUTIES: Home is where the saving is
Buyers of properties costing up to R900,000 will benefit most, but even the well-heeled will see a small saving
From March 1, home buyers won’t pay a cent in transfer duties when they acquire a property priced up to R900,000, up from the previous exemption threshold of R750,000. At present, transfer duty of 3% on the property value between R750,000 and R900,000 applies. In other words, if you bought a R900,000 house a month ago, your transfer duty liability would have been R4,500. The unexpected adjustment in the transfer duty threshold will no doubt provide welcome relief to first-time and middle-income home buyers. It is also in line with the overall focus of this year’s budget, which is largely supportive of poor and working-class families. Though buyers in the sub-R900,000 bracket will be the biggest winners from this year’s transfer duty adjustments, people who buy homes for R1.25m and more will also make a saving, albeit a marginal one.
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