FLISP assists first-time homeowners and homebuyers

If you are a first-time homebuyer, did you know that you may qualify for a subsidy to buy your first home and save thousands over the period of the loan, by reducing the monthly repayments? The benefit applies to homeowners who have already taken transfer.

What is FLISP ASSISTANCE?

Finance Linked Individual Subsidy Programme – FLISP

FLISP is the drive by the Department of Human Settlements to provide a subsidy to allow aspiring home owners to purchase a home, supporting your application to a bank for finance to buy your own home.

If you earn too little to qualify for mortgage finance to buy your own home, or you earn too much to qualify for the Government’s free basic house under their RDP Housing Subsidy Scheme, you may apply for the FLISP subsidy.

The once-off FLISP subsidy amount ranges between R20 000 and R87 000, depending on monthly income. The less you earn, the higher the subsidy. FLISP may be used for the following: - Buy an existing, new or old, residential property; Buy a vacant serviced residential-stand; or Build a residential property.

To qualify for the FLISP subsidy, you must meet certain criteria determined by the Department as well as the banks. It is available to all first-time residential homeowners (who have already taken transfer) or homebuyers (whose home loan has been approved by your bank) who earn between R3501 and R15000 a month.

The price of a property that can be financed through FLISP is determined by the joint household income, of not more than R15k per month.

Check out their website to find out more.

What happens to your assets if you die without a will and any living relatives?

A client advised that a friend died without leaving a will. His assets include a townhouse, two cars and a few bits of furniture. Who inherits?

The common law provides that, in this case, the State acquires the whole estate as bona vacantia. The matter is now regulated by sections 35(13) and 92 of the Administration of Estates Act 66 of 1965. The procedure is that where the intestate heirs cannot be identified or if there are no intestate heirs, the executor must sell all the assets in the estate (in this case, the townhouse, etc.) and, after payment of the estate’s debts, pays the residue into the Guardian’s Fund. If nobody can prove that they have a claim to the estate as an intestate heir of the deceased, then after 30 years have elapsed after payment of the funds into the Guardian’s Fund, the money accrues to the State.

You will find a really useful overview on the distribution of an estate of a person dying with or without a will, here: http://www.justice.gov.za/juscol/news/201106_intestate-and-testate-succession.pdf