select
|

Budget 2015: Experts gives comment

The Budget presented today by Finance Minister Nhlanhla Nene is surprisingly well-balanced given the current economic conditions in SA and the world, and a positive one for the property market, according to Harcourts Real Estate CEO Richard Gray.
 
“The market will of course derive direct and major benefit from the upward adjustment of the threshold for transfer duty. This means than there will be no tax payable on the purchase of any existing or pre-owned home priced at less than R750 000 – which accounts for the vast majority of first-time buyers.
 
“What is more, the transfer tax rate has only been increased on properties priced at more than R2,25m – in line with the Minister’s clear intention of collecting as much as possible of the additional tax revenue required to balance the Budget this year from the wealthy.”
 
This is also clear, he says, from the decision to increase the income tax rate by 1% only for those earning above R190 000 a year, while dishing out substantial tax relief to small businesses, farmers and those who contribute to energy efficiency by developing or installing “green” equipment.
 
“Meanwhile, we are also very pleased with the large allocations for housing, infrastructure development and refurbishment, and job creation in this Budget, as these are all essential for the long-term health and stability of the property market.
 
“The large overall increase in the fuel levy is of course a negative, but we believe it is preferable at this stage to a large increase in income tax or a huge cut in government spending that would have further damaged SA’s growth prospects and international debt ratings.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK