Budget – Chas Everitt International

The R125m grant to expand the township rejuvenation initiative, coupled to the tripling of the state's housing budget is to be welcomed, says Berry Everitt, MD of the Chas Everitt International property group.

"A bigger housing budget was expected to accommodate rising building costs. But the extra funds would have been less well spent without the Neighbourhood Partnership grant to expand and co-ordinate the initiative," he says.

Everitt also says the fact that commercial buildings will qualify for tax depreciation is expected to boost investment in this sector. "The 20-year write-off period effectively means that investors can expect a 5% higher yield per year on their commercial investments."

"More disposable income in the hands of individual taxpayers through limited personal tax relief, the increase to R43 000 in the tax threshold for individual tax, and the increased figure for tax-free savings, is also good news and it is to be hoped that these extra funds will flow back into debt repayment, including bond repayments on property."

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