Young people earning less than R22K a month can now possibly qualify for a home.
The Provincial Department of Human Settlements has developed a new product within affordable housing aimed at empowering aspirant first-time homeowners called Deferred Ownership.
In simple terms, this means “Rent to Own or Rent to Buy”.
It will be officially launched at the end of June 2022, says the department.
Youth interested in home ownership through Deferred Ownership need to earn from R12000 to R22000.
This product gives an opportunity to anyone including those who have been blacklisted to reach a point where they can be homeowners.
Potential beneficiaries will have an opportunity to rent a unit for a period of 6 to 24 months, after this the beneficiary will be able to buy their rented home through a bond.
50% of the rental goes towards a savings account to assist with buying the home.
“This is a massive policy shift for our provincial Department. It is the first of its kind,” says Minister of Infrastructure, Tertuis Simmers.
“Affordable housing through Deferred Ownership is the bridge for the youth into the open market.
“It focuses on how we can assist young people that want to enter the housing market by purchasing a house in the open market, if not through one of the Department’s various housing projects.
“It can also assist young people to build a good credit record that can assist them when they are ready to take a bond,” he adds.
Visit https://www.westerncape.gov.za/dept/human-settlements/ for more information.