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Further transfer duty cuts expected   Article Date :12 Feb 2007 Comments from managing executive of Absa Home Loans, Gavin Opperman The transfer duty on property is expected to be cut further when Finance Minister Trevor Manuel unveils the 2007/2008 National Budget on February 21, managing executive of Absa Home Loans, Gavin Opperman, said in a statement recently. "From a property market point of view, the Budget has become increasingly important in recent years, as transfer duty on property has been reduced for the five successive years up to the 2006/07 Budget," the statement said. These adjustments resulted in the maximum value of a property exempted from transfer duty being increased from 70,000 rand in 2001/02 to 500,000 rand in 2006/07. According to Opperman, government had lowered the transfer duty on property in order to make homeownership more affordable, especially for the lower-income groups, taking into account the sharp increase in house prices in recent years and a greater focus on housing delivery at the bottom end of the market. His expectation of a further cut in transfer duty comes against the backdrop of house price growth of more than 15% last year. "Such a step will contribute to the further broadening of homeownership in the country, especially at a time when interest rates are on the rise and the affordability of housing is under pressure," he asserted. In addition to the substantial cuts in transfer duty on property since 2001; mortgage loan products specifically developed for low-income earners by banks and government's housing subsidy scheme for low-income, first-time homebuyers were giving much-needed support to the lower end of the housing market, Opperman concluded. CLICK HERE TO RETURN TO THE MAIN NEWS PAGE