Business as usual for residential property market

The ‘business as usual’ budget with regard to residential property was not unexpected and will have no impact on the residential market in the year ahead.

Herschel Jawitz CEO of Jawitz Properties says: The two significant issues are transfer duty and the Capital Gain Tax exemption, neither of which have changed from last year.

“A drop in the threshold, below which transfer duty is not paid, or a drop in the rate would have certainly provided a welcome boost especially for the lower end of the market and for first time buyers.

“The transaction costs for buying a property are relatively high. Coupled with deposit requirements from the banks, a first time buyer purchasing a home of R800 000 may need to have as much as R80 000 in cash to put down, pay legal fees and transfer duty. Many buyers simply don’t have that kind of money and are being kept out of the market despite being able to afford the monthly repayments because interest rates are at low levels.

“Taking government revenue from transfer duty into account, the amount collected in 2006/7 was R6.7 billion and halved in the 2011/12 year to R3.8 billion. With these kinds of numbers and general revenue collection under pressure for the government, there was never really a possibility of transfer duty relief.

“From an infrastructure point of view, the Minister has delivered a good budget but the challenge is always about delivery on the ground and the huge amounts of the budget that are wasted each year through corruption and chronic implementation,” says Jawitz.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us