The monthly amount that teachers receive to service their bonds has not been increased for 22 years despite a staggering increase of 256% in property prices in the period from 1994 to 2007.
An increased housing subsidy has been a key demand in ongoing negotiations between teacher unions and the government.
Currently permanently employed teachers who want to buy property receive a set subsidy of R403 a month for a maximum bond of R70 000. The R403 a month would not cover the bond for a R50 000 house.
Some teachers have complained also about a condition that bars teachers married in community of property from each receiving a subsidy.
Said a teacher, who identified herself only as Bongi: “How come we are treated as one while we have different Persal numbers and two different services that we are rendering and expected to share one allowance? I feel every civil servant must enjoy his or her benefits because we all pay tax.”
But labour negotiator Shireen Pardesi of teachers’ union Sadtu points out that “the issue is increasing scope of ownership and not necessarily accumulating capital”.
Pardesi agrees that the housing subsidy paid to teachers is a pittance, considering the massive increase in property prices. According to Absa’s House Price Index released in April, the average price of a house in South Africa is R911 800. Analysts predict that this could rise to R1-million in the near future. The price hikes have hit all areas, including townships.
According to FNB, the price of an average house in a Gauteng township is between R230 000 and R275 000. A mortgage bond of R250 000 would require repayments of about R2 250.
Chris Klopper of the Suid-Afrikaanse Onderwysersunie said the subsidy system being used is based on the outdated 1985 model where “a bond of R70 000 was used”, disregarding the growth in the value of property in the residential market.
He said in terms of official current economic projections, housing costs would increase by 7,7% for 2007.
Given the average house price of R911 800, “what we are asking for really, as teachers, is to have the subsidy adjusted to a third of this amount, which is R300 000. Surely this cannot be said to be an unreasonable demand”, said Klopper.
The demand to have the subsidy adjusted means that for a R300 000 bond, teachers would have to make repayments of R2 700 a month.
Klopper said the situation is made worse by new legislation that allows municipalities to impose taxes on the market value of property. “The projection is that in terms of the new market valuations the rates regarding property taxes will on average increase by 10%,” he said.
the Teacher spoke to some teachers who said the money for housing is inadequate in the context of other financial needs such as water, food, clothes, school fees and transport.
An educator, who wished to remain anonymous and teaches in Nongoma, KwaZulu-Natal, but has a house in Newlands, Durban, said: “I dread the day I get my salary. Instead of being excited, I get depressed. Within a week … I would be left with small change.”
A Free State farm-based primary school teacher, who did not want to be named, pays about R4 900 a month for her bond. “On top of this I still have to buy food and clothes, pay for my two children, one of whom is at tertiary, pay for water, rates and services, including money for petrol and car maintenance.
“I really cannot cope. The employer is unsympathetic to our plight. I think our concerns are legitimate considering the fact that we have not had an increase in more than 22 years. It is really ridiculous,” she said.
Additional reporting by Maya Fisher-French