No transfer duty on homes under R750k #Budget2015

Aspiring homeowners got a boost from Treasury's changes to transfer duties.

Finance minister Nhlanhla Nene announced in his 2015 national budget that the rates and brackets for transfer duties on the sale of property from next month will be adjusted “to provide relief to middle-income households”.

The new rates will eliminate transfer duty on all property acquired for less than R750,000. This threshold was stuck at R600,000 for several years, even though the average and the median house price was significantly higher.

Apart from helping entry-level buyers, Treasury's new rules will also decrease the effective transfer duty payable for all other properties acquired up to about R2.3 million. But those buying houses of more than R2.3 million will have to fork out more. Transfer duties for these homes will be R85,000 plus 11% of the property value above R2.25 million.

Buying a R4 million house, will make you liable for transfer duties of R277,500.