Wednesday, October 23, 2024

Housing Subsidy Mitigates High Interest Rate

 Luzuko Pongoma

The high-interest rate is a noose around the necks of the already struggling working-class people. It

further deterred working-class citizens from realizing their dreams of owning property. The

announcement of a 29 percent increase in First Home Finance subsidy by Minister of Human

Settlements, Mmamoloko Kubayi, will assist in curbing the runaway costs of affordability for first-

time home buyers whose household income is between R3501 and R22000. People with this income

struggle to qualify for housing finance referred to as the gap market.

First Home Finance is a once-off housing finance that enables qualifying beneficiaries to buy or build

their first homes on affordable basis.  The subsidy has been increased to the maximum of R169 265,

this financial year.

For those living in Gauteng, through its mega human settlements’ projects around the province, the

Gauteng Department of Human Settlements has made it possible for many people to access gap

market houses. These gap market houses are also provided by private developers. With everything

increasing against the working class, a 29 percent increase to benefit people should be taken

advantage of by those who qualify as it will go a long way toward offsetting the consequences of the

high-interest rate.


https://www.sowetanlive.co.za/opinion/letters/2023-05-16-reader-letter-housing-subsidy-mitigates-rate-hikes/

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