select
|

Dr Andrew Golding comments ahead of SA’s National Budget

With local and international attention focused on South Africa’s National Budget tomorrow (Wednesday 24 February 2016), from a property market perspective it is hoped that the imperative to increase overall revenue collection will not result in a further increase in transfer duties on property transactions, says Dr Andrew Golding, CE of the Pam Golding Property group.

“While last year’s increase in the threshold for transfer duty to R750 000 and below (versus the previous R600 000 threshold) was positive, as was the decrease in transfer duty on transactions between R750 000 and R2.25 million, a move to increase transfer duty would serve to dampen a property market already beset by rising municipal rates and other costs inherent in owning a property, as well as the rising trend in both interest rates and inflation, and the overall impact of a sluggish economy.

“Last year saw a rise in transfer duty relating to property transactions above the R2.25m million mark – a sector which is also not impervious to the knock-on effects of constantly rising electricity, food and fuel costs and other inflationary impacts.

“The fact is, a large portion of sales in the property market are transacted in the price band up to around R3 million, so it stands to reason that raising transfer duties would not only serve to dilute sales but ultimately also revenue collection.

“This is at a time when an injection of improved economic sentiment would be welcome in order to boost market confidence and drive activity in the property market, and which is seen against the backdrop of gradually increasing interest rates. Equally important is a focus on creating an investor-friendly environment and achieving sustainable economic growth.

“By the same token it is imperative that those in the lower income groups remain encouraged to invest in ownership of their own homes, thereby fostering a culture of saving.

“Encouraging, however, has been the recent engagements between government and business leaders to discuss strategies to stimulate growth and revive investor confidence.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
        
    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