Lifestyle audits and emigration could resurge after 2020 budget speech

Posted On Wednesday, 26 February 2020 19:24 Published by
Rate this item
(1 Vote)

The impending budget speech has everyone anxious and for good reason.

Lifestyle audits and emigration could resurge after 2020 budget speech

Potential changes include a hike in VAT to 16%, as well as an increase in Capital Gains Tax (CGT). This all impacts the residential property market, potentially compromising homeowners as costs increase constraining an already tight budget. 

Lloyd Hobson, national sales manager of Leadhome, says that while it all seems doom and gloom, for buyers, these headwinds can create opportunity. 

Hobson says that a flat market creates great opportunities for those looking to invest. In this scenario, it is ideal for buyers to shop around and compare bond interest rate offerings as well as homeowner’s insurance. There is no need to simply accept what is offered by the banks, rather actively pursue good offers from several organisations. Buying in these circumstances does require a more long-term approach. Hobson says there is no short-term gain from investing in property currently. 

He also believes that a VAT and CGT increase may lead to further emigration or sales of homes because of the owners being in financial distress. Many of the latter will most likely audit their lifestyle and seek ways to downsize and reduce expenses. This potential influx of properties could bode well for buyers, but for sellers, only homes priced right will sell. Hobson advises to list and sell, don’t wait to try to achieve an unrealistic price. 

It would seem that no matter the economic circumstances, buyers are going to remain spoilt for choice, while the rest of the market grapples with another tough economic year. 

Last modified on Wednesday, 26 February 2020 19:42

Most Popular

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Please publish modules in offcanvas position.