RDP Housing Application
How to get an RDP house
Currently statistics show that almost 20% of South African households consist of people living in RDP houses which are government subsidised homes.
It therefore seems that the RDP housing system is a real solution for many people in South Africa, who do not earn enough to qualify for a normal home loan, to have in their own homes.
While this may be providing a solution for many, the waiting lists for RDP housing is significantly large & the quality of these type of low cost houses is often below standard with thin walls & leaking roofs with most of these type of complaints coming from the Western, Eastern & Northern Cape provinces.
However attention is being given to these issues by the authorities so it is definitely worth applying if you qualify.
Unfortunately it is not as simple as that, as to get an RDP housing application approved, the applicant may not earn more than a certain amount (R3000 per month) which means that people who earn more than the maximum to qualify for an RDP house but less than the required amount to qualify for a home loan, will have a difficult time in getting financing to buy any sort of house.
RDP Housing Application
To get your house, you need to start the RDP housing application process which begins by contacting your ward councillor in your area & to provide them with all the necessary documentation such as ID documents, proof of income etc.
A screening process is then performed & the successful candidates identified.
Furthermore in order to qualify for a 100% RDP subsidy you will need to earn between R0 & R3500 per month.
If an applicant’s income is higher than the maximum amount, the amount of the subsidy will decrease accordingly.
If the RDP housing application is approved the applicant will then receive the house together with the plot of land it is built on & all the relevant services in terms of water & electricity, sewerage etc.
A further subsidy can be applied for by the home owner, in the form of an indigent subsidy which subsidises the cost of the services if the owner earns less than R1000 a month.
For this extra subsidy, home owners need to apply at the indigent office & also need to go through this application process every year as the income status of the resident may change.
Criteria To Qualify For a RDP House
To be successful with your RDP house application you need to fulfill the following criteria;
- You must be a SA citizen with a vaild SA ID document
- You need to be over 21 years of age
- Your total household income cannot exceed R3500 per month
- You need to be married or live with your partner or have dependents
- You cannot have owned property previously or currently anywhere in South Africa – you need to be a first time home owner
Please note that these conditions can change at any time.
More Issues on RDP Houses
- Applicants should bear in mind that they will only be able to get one housing subsidy ever & will never be granted another one
- RDP house cannot be sold or rented out – they are provided solely for the applicant’s accommodation
- Any RDP owner wanting to extend or renovate their house before eight years of ownership will need to obtain permission from their local municipality
- Special treatment is given to disabled applicants – the design of the house may also be changed to accommodate the special needs of the person’s disability
Middle Class Income Groups Who Do Not Qualify For RDP Housing
Applying For a Home Loan Is Probably the Only Option For Those Middle Income Groups Who Earn Too Much For a RDP House
For those whose income is too high to be considered for RDP housing will need to apply for a home loan in order to buy or build their own houses.
This however is easier said than done as with the new Credit Act home loans are only granted on affordability once all your usual expenses are taken into account.
So while the interest rates are at all time lows, lending institutions are extremely reluctant to grant home loans to applicants whose earnings are borderline.