Government's bigger housing budget is expected to stimulate the property market, says Jan Davel, CEO of Aida National Franchises.
"Tripling the housing budget is good news for buyers at the lowest end of the market as it will create faster delivery of basic stock. It is also expected to boost activity among smaller and medium-size developers. Thirdly it will create new opportunities for property investors who cannot afford investments in the higher priced categories."
Davel also welcomed the focus on incentives to get the SA public to save. "In this regard the higher margin on tax-free savings, the abolishment of tax on retirement funds, limited cuts in personal tax and the increase to R43 000 of the tax threshold means that individuals will have mo re money in their pockets.
"It is to be hoped that consumers will heed Minister Manuel's advice to use this windfall to save instead of fanning the flames of consumer spending - and property still remains one of the safest savings mechanisms," he says.