Houses will not be built in isolation, however, as Finance Minister Trevor Manuel added that these 500 000 units will be complemented by increased expenditure on community sports facilities, police stations, transport infrastructure and administrative services.
In addition, buying houses will be made cheaper as, following up a 'tip for Trevor', the Minister announced that houses in the lower end of the market - under R500 000 - will not attract a transfer duty while those between R500 000 and R1-million - the generally accepted middle-income housing sector - will pay five per cent on duties.
Houses above R1-million will continue to attract an eight per cent transfer duty.
This boost to new homeowners and other purchasers in the property market is set to cost the fiscus some R4,5-billion.
Looking at main expenditure priorities for the medium-term expenditure framework period ahead, Manuel indicated that the largest portion of the 2006 budget is to go to the provincial equitable share, which will receive an extra R30,9-billion over the next three years.
Housing, along with municipal infrastructure, local transport and water schemes have been allocated an additional R9,3-billion in this budget.
In addition, a new subsidy for community libraries will be introduced and cultural institutions and sports promotion will receive supplementary funding.
Spending on community development will increase by 29% a year over the next three years while support for housing, agriculture and land affairs increases by close on 16% a year.
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