Comment on budget speech

Lew Geffen, chairman of Sotheby's International Realty in SA, says: "Today's Budget holds out excellent prospects for the speedy improvement of the real estate market and the sustainability of that recovery.

"The most important macro aspects include Finance Minister Pravin Gordhan's strong stance, re-iterated throughout his speech, against corruption and financial mismanagement which, together with the fact that he has managed to contain the expected Budget deficit this year to 4,4%, will undoubtedly boost the investor confidence that is the lifeblood of the economy - and of the property sector.

"Also critically important are the R845bn allocation to various new infrastructure projects and the increased spending on existing public works, community works, and rural development programmes, as these are set not only to create thousands of new jobs - and new home buyers - but to raise the management capacity of SA."

Of more immediate benefit, he says, will be the new housing subsidy scheme to be implemented through the provincial administations, which will see those who earn between R3500 and R15 000 a month able to access subsidies of up to R85 000. "This will give the lower end of the market much needed impetus and no doubt have a positive knock-on effect."
Loading comments
More news articles
Guidelines to securing a home loan
29 May 2018
Many young South Africans are working hard to achieve their dream of purchasing their first home. However, the process can be challenging due to the daunting application process, which can take up to 2 years and is often enough to discourage prospective buyers.
read more
Things you should consider before upgrading to a new home
23 Apr 2018
The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
read more