BUD­GET GOOD NEWS FOR SA PROP­ERTY MAR­KET

Pretoria News - - BR - | Ed­ward West

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.

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