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Housing market should be stimulated

As of March 1, the threshold for home transfer duties will be raised from R750 000 to R900 000, according to the 2017 budget, and this change should benefit new home owners.

“It will certainly enable more first-time home buyers to get onto the property ladder,” said Samuel Seeff, chairperson of the Seeff property group.

“That said, the cost of home ownership remains high with home owners burdened with rising property taxes, sectional title levies and ever-higher basic utility costs.”

Therefore, Seeff said they are pleased that there has been no further hike in transfer duty for the higher price brackets as was the case last year.

“The announcement is a welcomed boost for the local property market and will result in savings for buyers purchasing property in this bracket,” said Brendan Michie, from Hammond Pole Attorneys.

“It makes housing more affordable and is a welcome relief to individuals wanting to enter into the property market.”

According to Michie, property purchases can be an expensive exercise with deposits, transfer costs, bond costs and transfer duty all having to be paid up front.

“With this announcement, consumers can expect to pay less – which is fantastic – especially for first-time buyers as well as those looking to buy property in the affordable housing market,” he added.

Zodiac Real Estate agent Anne Prudhoe agreed that the transfer duty exemption is beneficial.

“This is a great benefit to new home owners,” said Prudhoe.

“This will help home owners to save money when purchasing a property.”

Seeff said over the past year the higher transfer duty and Capital Gains Tax impacted sales negatively.

And despite the weak rand, fewer foreigners purchased property despite the fact that there were welcomed record numbers of foreign visitors over the summer.

“We need a good economy to kick-start the property market,” Seeff added.

“Hopefully the higher exemption threshold will boost demand from first-time buyers.”

Also read:

Successful business key: Balance business and family

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