Commenting on today's (23 February 2005) Budget speech by Finance Minister Trevor Manuel, Dr Andrew Golding, CE of the Pam Golding Property group, said the Minister is to be commended for a continued emphasis on creating a stable and sound economic environment in order to promote growth in our economy and increased investment in South Africa.

"With increased spending in various projects and areas that will favourably impact on housing, skills training, job creation, security and infrastructure, among others, the message this once again sends to the global community is extremely positive, as it echoes the positive sentiment which is very much evident within our country today," said Dr Golding

"It is gratifying to note the personal income tax relief afforded to those in the lowest income bracket, and the commitment to transfer townships into sustainable and viable communities, as well as recognising the need for a greater impetus to encourage investment in housing and community infrastructure - particularly at grassroots level. The raising of the transfer duty threshold from R150 000 to R190 000 is also welcomed as the need to make home ownership more accessible, especially to first time buyers, is a key imperative.

"Having last year launched an Empowerment Division whose focus is on facilitating home ownership in townships and other urban areas through the creation of wholly black owned franchise offices around Southern Africa, the Pam Golding Property group is acutely aware of the burgeoning demand for homes in the emerging market, and the need to empower this sector by making finance for housing far more readily available. There is no doubt also that the rapidly increasing middle class is stimulating economic growth in South Africa, as well as having a positive ripple effect across the residential property market in general."

Dr Golding went on to say: "However, the 10 cent a litre increase in fuel is regrettable, as this could have an inflationary effect, and it also directly affects the disposable income of the lower income earners who are already faced with significant transport costs. It was also hoped that attention would be paid to reducing tax on pension funds - which is of particular importance in fostering a culture of saving among all South Africans - and to relaxing exchange controls in order to further encourage investment in our country. We also felt it would be an appropriate time for the offshore allowance for South Africans to be raised.

"All in all, taking into account the current extremely positive macroeconomic scenario with sound growth, low interest rates and controlled inflation, the Budget augurs well for the short and medium term future," concluded Dr Golding.

Ends