Budget comment property - Sothebys

Finance Minister Pravin Gordhan is to be congratulated on a very well-balanced maiden Budget, says Lew Geffen, chairman of Sothebys International Realty in SA.

"Today's Budget is remarkably positive, considering the  financial difficulties of the past year and the enormous strain this has put on the economy. It is very good news that the Reserve Bank's mandate to operate independently has not been changed and that it will continue to target inflation at between 3% and 6%, as the debate around this issue has been a threat to much needed foreign investment.

"Also positive are the plans to raise spending on education by R165bn and incentivise the employment of young people, as this will give our youth hope in the future."

Other very welcome measures, he says, are the provision for 15 000 more police to combat crime, plans to create more than 4-m jobs through the expanded public works programme and infrastructure development, and the R1bn boost for hosuing provision.

"Overall, South Africas should find this Budget very encouraging and enabling, and that will have a positive effect on the property market, which always responds well to stability and consumer confidence."

The Mega/Press Network

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