select
|

GOVERNMENT’S COMMITMENT TO HOME-BUYERS TO BE APPLAUDED, SAYS RE/MAX

GOVERNMENT’S COMMITMENT TO HOME-BUYERS TO BE APPLAUDED, SAYS RE/MAX


Finance Minister Pravin Gordhan’s announcement of relief to home-buyers is to be applauded – but could go further, says Peter Gilmour, Chairman & Regional Owner of RE/MAX of Southern Africa.


Gordhan announced in his maiden Budget speech today that the government would co-operate to find ways to address a key gap in the housing market, that middle-income earners cannot access financing to buy homes.


This follows the announcement by President Jacob Zuma in his State of the Nation address last week, that a guarantee fund of R1-billion would be set up to incentivise the private banking and housing sector to develop new products to meet the massive demand for formal housing.


 “Whatever measures that government introduces, that are positive in nature and assist people to afford to buy their own home, are important and should be supported,” says Gilmour.


“It is encouraging to see that government is taking a step in the right direction in terms of assisting South Africans to access home loans, but I think that this probably needs to be taken further than what is currently envisaged.


“For example, the $8 000 tax subsidy that the US government recently introduced has strongly encouraged house-buying in that country over the past nine months, accounting for between 30-40% of house purchases. This has had a significantly beneficial effect, putting the US economy on the road to recovery.”


In addition, Gordhan announced that the global financial crisis showed the need for central banks to take a broader view of the economy in managing inflation, and for the SA Reserve Bank to be more flexible regarding inflation-targeting, to keep interest rates stable.


“This move, too, should be supported,” says Gilmour. “With less volatility in interest rates, the housing market becomes more stable and home-owners are more easily able to service their mortgage debt over the long term.”


ENDS



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    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