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Budget 2017 - Transfer duty threshold increased

Finance Minister Pravin Gordhan announced today that properties under R900 000 will not attract transfer duty tax - this was previously R750 000. 

This comes as a welcome relief for the affordable housing market and will hopefully attract buy-to-let investors and more first-time home buyers. 

However,  Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says anyone still viewing the country’s medium term economic outlook through rose-tinted spectacles had them rudely ripped off by the Finance Minister today.

“There are unquestionably harsh times ahead. We’re immensely grateful there was no increase in VAT, but the new super tax bracket of 45% for individuals who earn more than R1.5 million isn’t good news for the upper end of the residential property sector.”

“And while we applaud the raising of the property transfer fee threshold to R900 000 from R750 000, in reality it will only provide relief for low to lower-middle income households.

“With an unemployment rate of more than 26% in the last quarter of 2016, businesses big and small need all the help they can get from the government right now, and in this budget they were largely ignored. That’s bad business for the economy, for consumers and for home owners.”


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