DA proposes housing voucher for 'missing middle'
The DA is mooting the introduction of a housing voucher that will enable South Africans who earn between R4,000 and R15, 000 to build or buy the homes of their dreams.
Contained in its manifesto is a proposal to award vouchers that beneficiaries can use to build their own homes or use them as security to finance bonded properties. The voucher is aimed at South Africans who earn less than R15,000 a month and it will be broken down into four offerings depending on the salary of the beneficiaries.
South Africans earning less than R4,000 will qualify for a voucher of up to R150 000. Those who earn less than R10,000 will qualify for 60% of R150,000, while those who earn above R10,000 will qualify for 40%.
Known as the "missing middle", people in these income groups often struggle to own property because they are considered too poor for home loans by finance institutions, but too wealthy for free RDP houses.
Addressing 20,000 supporters at a manifesto launch held at the Rand Stadium, south of Johannesburg, DA leader Mmusi Maimane said the proposal would allow South Africans that had been excluded from the property market to own land and houses.
"It [ownership] allows you to borrow money against the property, it allows you to pass it on to your children in your will, and it allows you to sell it, if you so choose," said Maimane.
"I also want South Africans to have a choice, which is why we will introduce a housing voucher which people can either use to build their home or as a down-payment on a house.
"In the South Africa I want to build, you will find estate agents in Alexandra and Khayelitsha, and not just in Sandton and Constantia, because property will have value wherever you go," he added.
He said beneficiaries would be able to build their own homes on government serviced sites. The other option would be for beneficiaries to use the R150,000 as deposit to buy an already existing home. Beneficiaries could also use the money to buy land for the purpose of building a home or use the money to upgrade their homes, located on land they already owned.
The Democratic Alliance launched their manifesto on Saturday, February 23 2019, at the Rand stadium, in Johannesburg. Here are 5 points from the launch.