Buying government subsidised houses: What you need to know

Interested in purchasing a government subsidised property? We've put together the answers to some frequently asked questions to help you better understand how the process works and what you need to know. 

We know that buying a home is a big investment and one of the best financial decisions you can make. It requires careful and long term planning. Getting your foot in the housing market isn’t easy.

The Department of Human Settlements is responsible for developing sustainable integrated housing opportunities in the Western Cape.

If you want to buy a house but can’t afford it, find out how we can help you.

1. Can I buy a government subsidised house?
   If you earn R0 to R3 500 a month you qualify for fully subsidised government house. These houses are given to citizens who can’t afford to buy their own house. By law, nobody is allowed to buy a house from citizens who received a government house for free. However, if you’ve lived in the house for at least 8 years, you can sell it back to government.
    
2. Are there subsidy options available?
   Yes, there are. If you want to buy a house and earn more than R3 500 but less than R22 000 there are subsidies available in the affordable housing market. For example, if you don’t qualify for a full subsidy from the government but are also struggling to get a bond from the bank, you can make use of the Finance-Linked Individual Subsidy or "Flisp" as it’s commonly referred to. The subsidy is paid to the financial institution providing the loan, and will reduce your monthly loan instalments, making it more affordable to buy a home. 
    

Want to know more about housing subsidies? Find out if you or your family member qualifies to apply.

3. How does the housing allocation process work?
   Housing demand and the allocation of suitable beneficiaries has been a concern of Provincial and National Governments for some time now. However, accurate beneficiary information is required not only for housing planning purposes but also to run beneficiary selection processes for housing projects that are fair. There are 9 allocation steps that the Department of Human Settlements follows in the allocation process.
    
4. What happens if the applicant dies before receiving the house?
   If the owner dies before taking up occupation of the house, the house is given to the next person who’s on the waiting list. However, if the applicant dies after the house has been handed over, government doesn't interfere.
    
5. Where can I find more information?
   For more information on housing subsidies contact the Department of Human Settlements or contact their helpdesk on:
   Call: 021 1 483 6488 / 021 483 0623 / 021 483 0611 / 021 483 3112 / 021 483 8984.
   Email: Human.Settlements@westerncape.gov.za