With consumer incomes under increasing pressure from rising transport, food and utility costs, the R9,3bn worth of household tax relief announced on the 26th February 2014's national Budget is very welcome, says Shaun Rademeyer, CEO of SA’s leading mortgage originator, BetterBond.
“We were also pleased that further measures were announced to encourage small business development, as this indicates growing government recognition of this sector’s ability to generate employment and assist more South Africans to rent or buy decent housing.
“We were disappointed, though, that the Budget did not bring any specific tax relief for homebuyers or owners – either by way of a higher transfer duty threshold or by way of a tax rebate for the interest paid on homeloans.”
Such relief, he says, would have helped to alleviate the current decline in housing affordability that is taking place as house prices and interest rates rise and salary increases fail to keep up with higher household costs.
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