No need to panic over land expropriation without compensation
Over the last few months, a sense of panic has gripped some South Africans over the government’s talk of land expropriation without compensation. But, what does the talk really imply and how can residential property owners anticipate being affected by any such policy?
As a property owner in Benoni, or just about anywhere else in the country at the moment, you may have been following the conversation recently on the topic of land expropriation without compensation. Both the media and opposition parties have kept the spotlight on the ANC government’s interest on the topic, issuing concerns of financial ruin comparable to Zimbabwe and urging caution. But, do the government’s plans really involve residential properties?
Stuart Manning, CEO for the Seeff Property Group, says that the question of land expropriation without compensation is a hot political topic. He points out that SA has a very robust and progressive Constitution, regarded as one of the best in the world and all laws have to be in line with the Constitution. Property rights are currently protected by Section 25, but there are many other safeguards and such a law is expected to be subjected to vigorous litigious tests. It would also be necessary to change the Land Restitution Act and there are currently no proposed or draft amendments to either this act, or the constitution.
The fact of the matter is that President Ramaphosa has been very clear that in the first place, the government is only looking at agricultural land in terms of redistribution, and only insofar it does not negatively impact food production in the country. Without doubt, the President is aware that turning citizens out of their homes would be the beginning of the end for South Africa, ending foreign investment and bringing tourism to a grinding halt without even going into detail on the civil ramifications.
Manning states that what is clear, is that the government is still a long way off from a workable solution and the need for economic growth will have to drive any land reform. It is therefore vital for property owners, buyers and investors to note that it remains business as usual for residential property ownership.
