If you’ve been considering buying property in Kempton, or you’re already a proud owner in the area, then you’ve probably heard about the public debate around land expropriation without compensation. It’s become clear that many ANC voters expect the party to amend the Constitution in order to facilitate a transfer of land. President Ramaphosa, however, has been very clear that the government is only examining options pertaining to unused agricultural land, options which would increase and not stifle food production.
We have also seen President Cyril Ramaphosa and the ANC come out strongly and reiterating that no land grabs in any form will be tolerated whatsoever and that any expropriation will be done within the confines of the laws and with the utmost care and in pursuance of economic growth and development and business and investor confidence.
According to Stuart Manning, CEO for the Seeff Property Group, the current proposal is around agricultural land and there are many concerns surrounding the mechanisms of expropriation and effect on the greater community, property owners and in particular, the financial and economic impact. He says that the banks for example, in addition to agricultural land bonds, also provide extensive loans to this sector hedged against crop yields and other assets. There is also the impact on the Futures Market to consider.
The president appears to be very aware of the fate of Zimbabwe and his agenda of financial restoration and investor confidence in South Africa would be served a fatal blow by residential land grabs. The strengthening of the local property market is a further indication that there are no whispers regarding such a thing, meaning that residential property investors should strike while the proverbial iron is hot.
