PROPERTY NEWS
PROPERTY NEWS
The
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The
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The
Ugly
Property Buyers Market on the Rebound
T here is a definite rebound in the property buyers market for 2017 according to Herschel Jawitz , CEO of Jawitz Properties . Consumer confidence as a driver of long-term decision-making will be the key to the recovery of the residential property market in 2017 .
While rebounding slightly towards the end of 2016 , consumer confidence has been at levels not seen since 1993 and below levels during the global financial crash in 2008 . This is clearly reflected in the slowing performance of the residential property market in 2016 . With house price growth at 5-6 % in 2016 , for the first time since 2011 , property prices declined in real terms taking into account inflation .
“ 2017 will be another year of measured price growth in the market with real price growth expected to be marginal as inflation starts to decline ,” Jawitz says .
Tax Hikes Expected for 2017
South Africans will pay more tax in 2017 according to parliament . Consumers in South Africa are under pressure financially and the reluctance to spend and invest and be taxed more is exacerbated by the crisis in political leadership that South Africa faces .
According to Robert Kiyosaki there are four financial forces that cause people to work hard and yet struggle financially : Taxes , Debt , Inflation and Retirement . The unfortunate part about all of this is that the rich know how to use these forces to make more money rather than have the government steal it away . They know how to make investments and run businesses that allow them to pay little-to-no taxes . And they know how to use debt to make investments that provide cash flow .
You don ’ t have to be rich ; you just have to be financially educated . The good news is that you can learn how to use the tax codes to your advantage .
Skepticism towards Land Reform
L and reform is one of the key parts to the ANC ’ s strategy to ensure economic transformation , and an economist says it can have a positive impact on economic growth . The idea is that the productive land should be shared equally and that land
Is in the hands of those who live in the country , which can impact the social aspects of life .
The statement also indicated the ANC ’ s intention to ensure more infrastructure investment , which prioritises black industrialists and entrepreneurs in townships and rural areas . Although this can remove inequality and the growth potential of the economy can be unlocked and be more inclusive , the problem is most researchers have concluded that it contributes little to helping beneficiaries earn a livelihood from the land . The reasons for this include inadequate post-settlement support , lack of skills , poor planning and infighting within communities .
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4 FEBRUARY 2017 SA Real Estate Investor www . reimag . co . za