In South Africa, the government introduced the Reconstruction and Development Programme (RDP) in 1994, aimed at providing affordable housing to low-income households. The RDP houses have since become the backbone of providing housing for those who cannot afford to buy or rent houses in the formal sector. These houses are built by the government and sold to qualifying beneficiaries at subsidized prices. However, the question most people ask is: How much is an RDP house worth?
Factors Affecting the Value of an RDP House
The value of an RDP house is affected by several factors. One such factor is its location. Like any other property, the location of an RDP house plays a significant role in its value. RDP houses located in urban areas are more expensive than those located in rural areas. Secondly, the age and condition of the house are also critical determinants of its value. An older RDP house in poor condition will be less expensive than a newer RDP house in good condition.
How is the Value of an RDP House Determined?
There is no specific value set for an RDP house. The value of the house is determined by several factors. Generally, an RDP house is sold at a subsidized rate below market value. The subsidy is dependent on various factors such as household income, household size, and the location of the house.
When selling an RDP house, the government looks at the current market value of similar properties in the area. The affordability of the house is also taken into consideration. The benefit of selling an RDP house at a subsidized rate to qualifying beneficiaries is that it allows low-income households to afford a decent home.
Can One Sell an RDP House?
Yes, one can sell an RDP house, but certain conditions apply. Firstly, the owner of the RDP house must have occupied the house for at least eight years before they can sell it. Secondly, the owner must obtain permission from the local municipality to sell the house. Lastly, the owner must repay the subsidy received when the house was purchased. The amount repayable is calculated by taking into account the length of time the owner has lived in the house, and the current market value of the house.
Note:
It is illegal to sell an RDP house before occupying it for at least eight years.
Conclusion
It is important to note that RDP houses were built to provide affordable housing to low-income households. The houses are sold at subsidized rates and offer an opportunity for everyone to own a decent home. However, the value of an RDP house is not set in stone and is determined by various factors such as location and condition.
It is essential to be mindful of the conditions attached to selling an RDP house before considering selling it. Ultimately, owning an RDP house offers a lifeline to those who could not afford a decent home otherwise.