Deferred ownership Pilot Project a Breakthrough into the Home-Ownership Market

Six weeks since its launch, the Mill Park Home Ownership Project in Bredasdorp, Cape Agulhas is proving to be a welcomed breakthrough into the home ownership market for aspirant buyers.

On June 21, the MEC of Infrastructure Tertuis Simmers, conducted a sod turning ceremony for the 106 units affordable housing programme project. The project is aimed at assisting aspirant first time homeowners, through either a home loan or a Help Me Buy A Home (FLISP) subsidy. A first of its kind, the Deferred Ownership (rent to own) structure was launched through this project. To date, the project already has eight (8) buyers pre-approved through sale, home loan and Help Me Buy A Home subsidy. The Deferred Ownership project has five (5) pre-approved applicants, an indication that this structure will certainly assist many residents to access the property market.

The Rent to Own qualifying applicants will be able to rent their future home for a period of 6 to 24 months. This is combined with consumer housing education and financial literacy. The Help Me Buy A Home subsidy and 24 months’ deposit savings will be deducted from the purchase price as a price reduction mechanism after the 24 months rental period.

MEC Simmers said: “the project is proving to be the catalyst we anticipated. The show house is nearly completed, and we will be unveiling it in due course to the public. The department has been inundated with enquiries and I am certainly delighted that some of these have been converted into applications and pre-approved sales. Through this project the Western Cape Government continues to create an inclusive society with equal opportunities for all.”

The qualifying criteria for the Mill Park Deferred Ownership /Rent to Buy Project, include:

Applicants need to reside in Bredasdorp or the broader Cape Agulhas Municipal Area;

Earn between R 3 501 to R 22 000 gross combined income per month;

Have not previously owned property;

Have not previously received a government housing subsidy;

Must be a South African citizen or have a permanent residency; and

Be married, cohabitating or have a financial dependent.

Source: Government of South Africa