We had very good news on Budget day when the finance minister announced that they will be increasing the transfer duty threshold from R600,000 to R750,000.
The implication of this on real estate transactions in 2015/2016 will be that
people buying homes for less than R750,000 will be saving from around R300 to
R4,500 in transfer duty depending on the price of the property purchased. (See table below)
For those people buying property costing more than R750,000
but less than R2.25 million there is also a reduction in the transfer duty.
Unfortunately people buying for more than R2.25 million will be paying more
transfer duty. (See table below)
It is important to keep in mind that all property purchases
are subject to transfer costs which is the sum of the deeds office charges and
the conveyancing fees. There is a common misconception that registration of
properties under the transfer duty threshold is free.
Lastly it is also important to remember that the home loan
divisions in the banks are not allowed to include the transfer costs in the
bond grant and so all buyers must have access to enough funds to pay the
transfer costs before buying a new home.
Transfer Duty 2015/16
|
|
Value of property
|
Transfer duty calculation
|
R0 – R 750,000
|
0%
|
R750,001 – R1,250,000
|
3% on value above R750,000
|
R1,250,001 – R1,750,000
|
R15,000 plus 6% on value above R1,250,000
|
R1,750,001 – R2,250,000
|
R45,000 plus 8% on the value above R1,750,000
|
R2,250,001 +
|
R85,000 + 11% on the value above R2,250,000
|
 |
Table supplied by Leeuwner Maritz Attorneys |
Please contact me on 082 785 3305 or caroline@remax2000.co.za if
you need more information or help regarding buying or selling your home.
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