|Today’s national budget was good for the residential property market across the income spectrum, says Berry Everitt, MD of the Chas Everitt International property|
"The significant jump in the transfer duty threshold is especially notable as it not only benefits first-time buyers but also those buy-to-let investors who now want to sell units at less than R500 000, as well as retirees who wish to sell up large homes and perhaps buy something smaller and easier to maintain. In short it will unlock stock and, as the Minister said, stimulate the secondary market at this level."
At the same time the lower rate of duty between R500 000 and R1-million will encourage upgrading in the middle market, as will the increase in the Capital Gains Tax exemption for primary residences to R1,5-million.
"In the broader sense, the Budget is also a responsible one with regard to the home ownership promises the government has made. Notably, more money for building, upgrading and maintaining municipal infrastructure is also positive for the property industry, as are the strong initiatives to raise educational standards and bolster skills development."