Okay, so we know VAT is going up. It's moving from 15% to 15.5% on 1 May 2025, and then to 16% in 2026. That might sound scary if you're trying to buy your first home, but hold on! There's actually some really good news that could make things a bit easier.
First up, the transfer duty exemption is going up too! From 2025, it's jumping 10%, going from R1.1 million to R1.21 million.
What does that mean?
If you're buying a place for R1.21 million or less, you'll save on transfer duty. For example, on a R1.2 million home, you'd save R3,300! That might not seem like a lot, but it can help cover moving costs, legal fees, or even some new furniture.Plus, there's help from the government. The First Home Finance program (formerly FLISP) gives money to first-time buyers who earn between R3,501 and R22,000 a month. You can get anywhere from R30,001 to R130,000, and you don't have to pay it back! Use it as a deposit or to lower your loan amount.Banks also want your business! They might offer better interest rates or lower fees to first-time buyers. Shop around and talk to different banks to see what deals you can get.There's also a chance the market might become a "buyer's market."
That means there will be more homes available, and you might be able to negotiate a better price. And, more developers are building affordable homes, which is great news for first-time buyers on a budget.So, while the VAT increase isn't ideal, there are plenty of good things happening for first-time buyers. With the higher transfer duty exemption, government help, good deals from banks, and more affordable homes, you can still make your dream of owning a home come true! Just do your homework and find out what's available.
