Budget 2017 Relief for Property Buyers
Category Newsletter: HeadOffice
Finance minister Pravin Gordhan today revealed in the highly anticipated National Budget Speech 2017 that properties under R900 000 will not attract transfer duty tax.
According to Harry Nicolaides, Century 21 CEO, this is positive news for first-time homebuyers and the affordable housing segment.
“We welcome the increase in the exempt threshold for transfer duty from R750 000 to R900 000, especially as first-time homebuyers make up the bulk of the property sales market,” says Nicolaides.
He adds that South Africa could experience an increase in property sales in this bracket, following today’s announcement.
“Firstly, it now makes it more affordable for buyers to buy properties up to R 900 000, 00 and where perhaps these properties are situated in better property nodes, close to cities and in established suburban nodes and secondly, this then serves as a catalyst for sellers wishing to sell their property below R900 000 in these same nodes and move up the property ladder to more expensive homes. The knock – on effect then gets rippled higher up the price brackets.
“Despite the constrained economic outlook and the message by the Minister of fiscal prudence, the South African property market outlook for 2017 is cautiously optimistic, with steady or stable house price growth although somewhat muted, relatively low interest rates, favourable inflation outlook and careful confidence by lenders. The relaxation in the transfer duty rates will therefore act as further stimulus for the property market,” concludes Nicolaides.
About Century 21
Century 21 South Africa is a franchisor with the largest global network in the residential real estate industry including approximately 6,900 independent offices worldwide in 78 countries and territories worldwide and more than 101,000 independent sales professionals.
Author: Century 21 South Africa CEO, Harry Nicolaides
