An announcement during the 2020 Budget Speech regarding the adjustment of the transfer duties threshold is welcome news for the struggling property sector.
With properties under the R1 million no longer subject to transfer duty, Bondspark CEO Marcél du Toit says that this affirms the company’s view that there is a lot of activity within this market segment.
“This was a very positive decision and we believe that this was a smart move from the finance minister and will help to further stimulate the economy while providing much-needed relief for homeowners in this price bracket.”
Du Toit says Bondspark, is excited to see the impact of the budget speech over the next six months. He is confident that South Africa’s property market will recover within the next year.
“It is important to see the National Treasury support the property sector. Affordability has long been an issue within the sector, and the changes have addressed this directly. This will, in turn, improve consumer confidence, which was at an all-time low.”
In addressing affordability, Du Toit says that they also expect more prospective buyers to qualify for the home loans they need. “This will again increase confidence and add much-needed impetus to the property sector.
“With the competition among banks also on the rise, we can only see the consumer benefitting over the next fiscal period, which makes for a great change and bring much-needed upswing locally.”