That owning property is a solid investment is a fact supported by Mmusi Maimane, the DA’s candidate for Premier of Gauteng.
Writing for the Daily Maverick Maimane explained that his parents owned the title deed to their home in Dobsonville; enabling them to borrow against it, as well as investing in their home. He wrote that “without it, I would not have been able to take the opportunities that came my way later in life” and goes on to say “…I thank that title deed, because it was the genesis of the success I have been able to achieve…”
It is hard to dispute that entering the property market gives people a valuable asset to work with and is a means to accumulate wealth.
It is important to keep in mind that purchasing a property is about a lot more than having a place to live or as a stepping stone to a bigger, more expensive home. Those who own property are able to borrow against it, sell it at a profit or rent it out for extra income. When managed wisely these properties can aid in giving a child an education, as was the case with Maimane, or serve as a retired person’s pension (providing monthly income in the form of rental payments).
Whether a RDP house in Soweto or a mansion in Sandton, what is most important is the ownership of a title deed. Without it none of the property’s financial benefits can be accessed. According to a report issued by Urban Land Mark (ULM) in 2011, it was estimated that between 1.1. and 1.4 million subsidy beneficiaries did not have title deeds to their properties.
The delay has been blamed on a number of factors. However, regardless of the issues being faced in terms of getting title deeds into the hands of property owners, the bottom line is that it needs to be obtained as quickly as efficiently as possible. We live in a country with a severe economic imbalance between rich and poor and providing home owners with title deeds can do much to empower them.
The Department of Human Settlements should do everything in its power to assist the process. The sooner home owners can legally borrow against, rent out or sell their properties the sooner they can work to uplift themselves. It is imperative that this issue gets the attention it deserves.
Content provided by Leap Frog Property Group.
