Following Council’s approval, residents who are registered on the City’s Housing Database, have not previously benefited from a government subsidy and have a monthly income of between R9 000 and R22 000, among other criteria. Residents who meet the criteria will have the opportunity to apply to purchase the residential serviced plots in Fairdale, Blue Downs, at discounted market value rates.

Beneficiaries also need not have owned property previously, must be able to obtain an approved housing loan or bond from a commercial bank, and qualify for a Finance Linked Housing Subsidy (FLISP) with the Western Cape Government for the top structure i.e. the house. 

Current City or social housing tenants, as well as single individuals with financial dependents, who meet the criteria, can also apply.

‘The City currently provides various housing opportunities, according to specific target income groups, as prescribed by applicable legislation, including free State-subsidised Breaking New Ground houses as well as social housing and land restitution projects.

‘The City, however, recognises the growing need for housing opportunities for individuals who fall in-between the gap, where they earn too much to receive a State-subsidised home but too little to participate in the private property industry, given the increasing property prices.

‘To assist this specific target income group with getting a foot in the property market, the City has agreed to make these well-located plots of land, in a sought-after area within Blue Downs, available at discounted market value rates to qualifying beneficiaries, who are up for the adventure of building their own homes, with the help of a commercial bank loan and the FLISP subsidy,’ said the City’s Mayoral Committee Member for Human Settlements, Councillor Malusi Booi.

The plots range between 160 m2 to 350 m2 in size and are valued at approximately R105 000 (excluding VAT). The market value was determined by the City’s valuers.

‘It was important for the City’s Human Settlements Directorate to ensure that the sale price of the properties was affordable to the beneficiaries. For this reason, the purchase prices will be based on a sliding scale of discounted rates, depending on the qualifying beneficiary’s monthly income. This means that properties could be sold to the beneficiaries for between approximately R25 000 and R63 000. The sale will be secured once a bank loan is approved and the full payment is made to the transferring attorney within six months of signing the deed of sale.

‘Furthermore, the deed of sale will include conditions that no informal dwellings can be built on the property and that the property cannot be sold within the first five years, from the date its purchased from the City,’ said Councillor Booi.

All legal processes for the transfer of these properties for Gap housing purposes, including public participation, have been followed.

‘Owning property will give the beneficiary and their family a sense of security and it will become a financial asset. We, therefore, encourage beneficiaries who meet this criteria to apply, should they be interested in this opportunity to own a plot of land and build their home.

‘Going forward, the City aims to make more land available in different areas across Cape Town to qualifying beneficiaries to purchase for Gap housing opportunities. Residents are reminded that there are various Gap housing projects in different areas, including projects with completed houses, not only vacant land,’ said Councillor Booi.

Application forms will be available from Monday 5 August 2019. They can be collected and returned with applicable documentation at the following housing offices:

• Kuils River Municipal Offices, corner of Carinus and Van Riebeeck Roads in Kuils River.
• Housing Kiosk at the Concourse level, Cape Town Civic Centre, Hertzog Boulevard, Cape Town.

The application form can also be downloaded from the City’s website.

Should residents have further queries, they may call 021 444 0333, the City’s Call Centre on 0860 103 089, via WhatsApp: 063 299 9927, or email myestate@capetown.gov.za or accounts@capetown.gov.za.

For more information visit /city-connect/apply/city-housing-and-properties/housing-opportunities/apply-to-buy-land-in-blue-downs

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