Wednesday, February 24, 2016

Budget 2016 - Wonderfully stable for the property market!

The Minister of Finance has completed his 2016 budget speech and the news is overall far more muted than most of us expected.

Aside from raising a few taxes on the periphery and bringing in a new tyre tax and even a tax on sugar next year, not much has changed.

Once small change which affects the property market is that the transfer duty rate on property sales above R10million has been hiked by 2%. This will not affect the majority of residential buyers and we therefore do not see it having any impact on the property market in the next year.

The new transfer duty rates effective 1 March 2016 are:

Remember, the date of sale is the date which determines your transfer duty amount payable, so if you are intending to purchase in the R10million and above bracket, make sure you conclude your sale before the 29th of February!

Our contact details are available on our website and you can let us know if you have any queries regarding the transfer duty changes, or in fact any other aspect of the budget speech.

Thursday, February 18, 2016

First time buyers now have a great time to buy

When looking at the average prices of properties being purchased by first time buyers over the past 24 months and then the past 12 months, we see that price increases in the bracket are slowing down.

Two years ago, the average price in this bracket increased nearly 5% whereas over the past year we have seen a much more manageable 2.4% increase.

This, coupled with an increase in the percentage of mortgages being granted to first time buyers shows the market that it's a good time to buy. Consulting the right agent and selecting the property that falls within your means is a winning combination as it will stand you in good stead to weather the pending interest rate hikes.

A good conveyancer will ensure that your purchase and transfer are seamless and this is why we recommend that you contact one prior to putting pen to paper on your sale agreement.

Mc Naught and Company are available via a number of means of contact and the partners mobile numbers are on our website should you have any queries.

Happy house-hunting :-)