BUDGET GOOD NEWS FOR SA PROPERTY MARKET

THE NATIONAL Budget was good news for the property market, property companies said yesterday. Pam Golding Properties chief executive Dr Andrew Golding said the fact that no major tax increases and even personal income tax relief across the board was announced by Finance Minister Tito Mboweni, with the bulk going to taxpayers earning less than R500 000 a year, was good news for the property market. The further adjustment in transfer duty threshold was also a welcome move, he said. The threshold for transfer duty with zero duty payable was raised to R1 million or less, from R900 000. One of the primary beneficiaries of the Budget would be first-time home owners, he said. First-time buyers account for about half of all mortgages currently facilitated, but affordability had tended to dampen demand. “The 2020 Budget goes some way towards addressing this, by lifting the transfer threshold. The average price paid for a home by a first-time buyer broke the R1m barrier for the first time ever, at the beginning of the year – at R1 001 275 in January 2020,” Dr Golding said. The increase in the transfer duty threshold would not only stimulate first-time home buyers but also others seeking affordably priced homes – a key segment of buyers in the current market. On the increase in fuel levies, Golding said: “As we’ve seen in recent years, and a trend which will continue, is that rising fuel costs further propel buyers towards conveniently located, hassle-free living in major centres and key nodes close to the workplace and all amenities, including schools, with the added benefits of avoiding heavy traffic congestion and time wastage.” Cashstrapped, budget-conscious consumers would be looking to reduce monthly costs wherever possible. “We’re going to see an ever-increasing trend towards energy-saving features as more and more homeowners – including entire residential estates and developments – endeavour to reduce their reliance on Eskom and even go completely off the grid,” he said. Seeff Property Group chairperson Samuel Seeff also welcomed the personal tax relief and the raising of the transfer duty threshold.