What do recent changes in national government mean for the property market?
Category News
The recent changes in national government may have sellers asking, "so what does this mean for me?"
Things have moved rather rapidly since the ANC’s Elective Conference in December with Cyril Ramaphosa elected as ANC President and now President of SA.
Development on the political front has been swift and it has lifted the overall mood in the country. President Ramaphosa’s maiden State of the National Address (SONA) signalled a strong intent to cut corruption and wasteful expenditure and get the country back to political stability and economic growth.
Budget 2018 was a little more sobering, but, we expected that it was always going to be a tough budget given that Finance Minister, Malusi Gigaba, already signalled during his mini-budget late last year that there was a significant fiscal deficit that needed to be funded. With a sluggish, albeit improving economy, this could only come from higher taxes.
While the budget has necessarily brought higher taxes and costs for consumer households, it has also hinted that the economic outlook is on the up. The budget and commitment to cutting corruption and costs have been well received by economists and the international ratings agencies, all of which must be welcomed amidst one of the most challenging phases since 1994.
What is important now, is that we start seeing all of the good intentions translate into action. Tax payers want to know that their hard earned tax money is spent where it is intended. The country can no longer afford the mismanagement of the State Owned Enterprises (SOEs) and the bloated cabinet and state expenditure needs to be brought under control with some urgency.
That said, we are already seeing business and consumer confidence lifting and there is a renewed energy in the country which is filtering through to the property market. Seeff’s branches nationwide are reporting that there is more demand for property, but at the same time, with more stock to choose from, serious sellers need to heed the call to price correctly if they want to make a successful sale.
Is it a good time to buy property? Indeed. Conditions are favourable for buyers given that price growth has for the large part remained fairly flat and with so much more stock on the market, buyers have an excellent choice of properties in most areas right now.
Development on the political front has been swift and it has lifted the overall mood in the country. President Ramaphosa’s maiden State of the National Address (SONA) signalled a strong intent to cut corruption and wasteful expenditure and get the country back to political stability and economic growth.
Budget 2018 was a little more sobering, but, we expected that it was always going to be a tough budget given that Finance Minister, Malusi Gigaba, already signalled during his mini-budget late last year that there was a significant fiscal deficit that needed to be funded. With a sluggish, albeit improving economy, this could only come from higher taxes.
While the budget has necessarily brought higher taxes and costs for consumer households, it has also hinted that the economic outlook is on the up. The budget and commitment to cutting corruption and costs have been well received by economists and the international ratings agencies, all of which must be welcomed amidst one of the most challenging phases since 1994.
What is important now, is that we start seeing all of the good intentions translate into action. Tax payers want to know that their hard earned tax money is spent where it is intended. The country can no longer afford the mismanagement of the State Owned Enterprises (SOEs) and the bloated cabinet and state expenditure needs to be brought under control with some urgency.
That said, we are already seeing business and consumer confidence lifting and there is a renewed energy in the country which is filtering through to the property market. Seeff’s branches nationwide are reporting that there is more demand for property, but at the same time, with more stock to choose from, serious sellers need to heed the call to price correctly if they want to make a successful sale.
Is it a good time to buy property? Indeed. Conditions are favourable for buyers given that price growth has for the large part remained fairly flat and with so much more stock on the market, buyers have an excellent choice of properties in most areas right now.
Author: Seeff
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