Becoming a New Home Owner

1. How do I become a homeowner?
2. Do I qualify for a housing subsidy?
3. Buyer beware!
4. I am HIV-positive/ have AIDS
5. I am disabled

• By buying an existing house. This would be a house that is already built and which you purchase from a seller or a developer, and for which you receive a deed of sale.
• By buying land and building your own home. You would do this by buying land and signing a building contract with a developer or builder.
• By participating in the building of your own house in a Enhanced People's Housing Process (EPHP) project. This homeowner option allows you to build on serviced or partially serviced land or on a plot registered in your name.
• By purchasing a house through an estate agent, whose commission fees you would be responsible for paying.
• By applying to a municipality to form part of a housing project within the municipal area. In this instance you will be placed on a waiting list, or what is also known as the housing demand database.

You qualify for a housing subsidy if:

• You are registered on the housing demand database at your nearest municipality.
• You have been on the municipal housing demand database (i.e. waiting list) for a minimum period of 10 years in Cape Town and 5 years in areas outside of Cape Town.
• You are a South African citizen or have a permanent residency permit.
• You are 18 years or older.
• You are married or living with a partner.
• You are single or divorced and have proven financial dependents permanently living with you.
• Your maximum monthly household income is R 3 500 or less before deductions.
• You or your partner have never owned property or in exceptional cases where the final order of divorce leaves all immovable property to one person, a person owns a portion e.g. A fifth of a property bequeathed in an estate and where a person owns a vacant stand bought without State assistance.
• You or your partner have never received a subsidy from the government before.

Please note that priority will be given to applicants who are either 35 years or older, or have special needs (e.g, disabled persons). There is a limited budget, therefore assistance is provided on a first come first serve basis. Applications must be submitted from 1 April and will be accepted until the funding is depleted.

• The Department has various other housing subsidy programmes and solutions available.

Make sure that you read the entire purchase contract. It contains important information, such as the consequences of not keeping to the purchase agreement.

These include:

• Being blacklisted if you do not keep up with your payments.
• Being evicted.
• You may be handed over to a lawyer.
• Your house can be taken back and given or sold to someone else. Any money received will be used to pay the outstanding loan amount - if you have a loan from a bank.
• You will still be held liable for the balance.
• Not being able to apply for credit again, unless you prove that you have paid off all outstanding debt.

Do not buy a house from someone unless they can provide you with a copy of the title deed of the property. If you buy a house without a title deed you cannot prove ownership and the seller may try to claim the house back.

• You may not be denied a housing subsidy or a mortgage loan on the basis of your HIV status.
• You will have to think about medical costs as this will affect the affordability of the house and your ability to repay your mortgage loan.

You can only plan if you know your status.

• A permanently physically disabled person who qualifies to receive a government housing subsidy - or members of such a person's family who care for him/her - is elligible to receive a house specifically altered for their needs in order to enable them to live more independently.
• The alterations to the house are tailor-made to accommodate a variety of special needs. Alterations include: concrete aprons and ramps to facilitate access to houses, special grab rails in bathrooms, kick plates to doors, visible doorbells and special arrangements for access to toilets.