Budget: 'no impact on property market'

2013-02-27 19:47 - Sapa

Johannesburg - Finance Minister Pravin Gordhan's 2013 Budget will have no impact on the residential market, Jawitz Properties CEO Herschel Jawitz said on Wednesday.

"The 'business as usual budget' with regard to residential property was not unexpected, and will have no impact on the residential market in the year ahead," he said in a statement.

Transfer duty and the capital gains tax, which remain unchanged, were the two main issues with which the industry was grappling.

"A drop in the threshold, or rate, would have certainly provided a welcome boost, especially for the lower end of the market, and for first-time buyers."

Transaction costs for buying property were relatively high.

"Coupled with deposit requirements from the banks, a first-time buyer purchasing a home of R800 000 may need to have as much as R80 000 in cash to put down, pay legal fees and transfer duty," he said.

"Many buyers simply don't have that kind of money and are being kept out of the market despite being able to afford monthly repayments, as interest rates are at low levels."

* Visit our Budget Centre for full coverage of the 2013 Budget Speech, including a sin tax and personal tax calculator.

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