LIMPOPO – Buying a house is a dream for many first-time buyers, but for some, affordability is a factor in that dream not coming to fruition. With that said, the Department of Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta) has a housing subsidy for first time buyers that is allocated to those who meet certain criteria.
Individual housing subsidies are available to low-income households, where an applicant wishes to buy a residential property for the first time. The subsidy can be used to buy an existing house – including the property on which the house is situated and it can also be used to buy a property on a plot-and-plan basis, or to finish an incomplete house.
The MEC for Coghsta, Rodgers Basikopo Makamu, said successful applicants will only receive the subsidy once. He reiterated that it is not a cash pay-out, but one that is paid directly to a financial institution or a conveyancing attorney.
“The department surveys specific locations where a criterion will be set and eligible buyers will be awarded a subsidy to purchase property at that location. This happens when there is a piece of land that is to be developed for residential purposes,” he explained.
Makamu says these locations are usually new developments in towns or cities that have been rezoned for residential purposes. “One can also apply for a subsidy from the department provided that they meet the requirements for the subsidy,” he said.
Requirements for the subsidy include:
- No prior property ownership.
- A household income of less than R 3 500 and the beneficiaries must not be recipients of any other government subsidy.
- You are married or cohabiting with a long-term partner. If you are married or cohabiting, it does not matter whether you have financial dependants or not.
- You are a South African citizen.
- You are over 18 years of age.
- You and your family will live on the property bought with the subsidy.
Makamu added that the main aim of the subsidy is to help disadvantaged families who cannot afford to buy property. The process of applying for these subsidies can take up to 30 days and the forms can be downloaded from Coghsta’s website or at their local office, situated at 28 Market Street.
