earn under R22 000

Earn Less Than R22 000 a Month? You Can Still Buy a Home

A property developer is helping South Africans who earn less than R22 000 a month access an “underutilised” government housing subsidy to assist those wishing to become first-time homeowners.

The government’s Finance Linked Individual Subsidy Programme (FLISP) helps qualifying first-time buyers caught in the “gap” sector – those who historically earned too little to buy property – with financial support.

Property expert Toni Enderli, said FLISP subsidies, combined with the lowest interest rates in 50 years, transfer duty relief and higher home loan rate approvals, mean many families who rent may now be able to buy into the affordable housing bracket for the first time.

Read: Financing made simple | Making use of FLISP

Responding to reports of bureaucratic challenges in accessing FLISP subsidies, Enderli says International Housing Solutions (IHS) – developers of the entry-level, innovative and eco-friendly, gated community, Ihlathi, in Parklands, Cape Town – has appointed dedicated FLISP agents to help.

“Many who qualify are not accessing FLISP funding due to various challenges. Our FLISP team is helping them buy their first home in Ihlathi by taking away the administrative pain,” said Enderli.

Realtor of Excellence’s development sales director, Wayne Lawson, said: “Low-interest rates, no transfer duty or fees, higher loan rate approvals, attractive entry-level offerings and FLISP subsidies offer unprecedented opportunities to prospective home buyers.

“Monthly repayments for one-bedroom units (priced from R699 999) at Ihlathi are under R5 500 per month, compared to R7 500 a month to rent a similar space.”
Two-bedroomed units start from R779 999 and three-bedroom units from R1 249 999, he added.

Read: Applying for a home loan? Here’s what the banks are looking for

IHS’s SA MD, Rob Wesselo, said Ihlathi is Green Building council-certified, includes solar geysers, fibre-ready internet, and 24-hr security monitoring. “In addition to affordability, you’re buying into a safe, secure and ideally located community on a green belt. This value is unprecedented,” he added.