Budget Reaction – Gerhard Kotzé

The budget was disappointingly what the property sector expected with little to incentivise the market says ERA Property Group, CEO Gerhard Kotzé.

“It failed to reduce entry costs for home ownership, via tax relief, adjustments to estate duties, transfer duty (which currently kicks in at a rate of 5% for a property valued at R500 000) or other measures.

“On the other hand the promised tax relief for ‘small to medium sized players’ (presumably small developers) could help to bring less expensive homes to the market but the quality of homes delivered by such developers would have to be carefully monitored.”

Kotzé was encouraged that National Treasury is proposing to enhance and add to incentives to encourage employers, developers, landlords and others to increase the supply of houses for low-income families and that the tax relief for the Urban Development Zone incentive. This in turn encouraged inner city rejuvenation including residential development and will be extended for a further five years.
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