More rate cuts expected | How SA's Supplementary Budget impacts the property industry
South Africa urgently needs to save jobs and create new employment opportunities. The country's debt burden is spiralling towards further downgrades with the fiscal deficit for this year forecast at -14.6% of GDP and gross debt as % of GDP at 81.8. SA's ability to repay its debt is fast deteriorating, with the debt burden expected to rise to 87.4% by 2023/24.
The Supplementary Budget tabled by Finance Minister Tito Mboweni on Wednesday, 24 June addressed the crucial need to save jobs and create new ones so as to broaden the tax base, and further enable Government to service its climbing debt.
Treasury’s special adjustment budget serves to modify the current budget outlined in February 2020 “to provide for the rapidly changing economic conditions and enable spending on the COVID-19 response". Investec analysis shows an anticipated contraction of around 10.1% this year for the domestic economy, moderately weaker than Treasury’s adjusted forecast of -7.2% y/y, due to a "slower recovery, marred by insufficient electricity capacity".
Property boundaries | Resolving arguments with your neighbour
Buyers tend to concentrate on finding homes that are affordable, secure and as close to work and school as possible, but they do need to be aware of some pitfalls that could have a very negative effect on the value of their investment.
This is the word from Rudi Botha, CEO at BetterLife Group, who says that these pitfalls include negative environmental factors, local infrastructure that is not in great shape and sometimes, rules made by a body corporate or homeowners’ association that won’t suit their personal lifestyle. To avoid these problems, he says prospective buyers need to look beyond the property they are interested in to the neighbouring homes and the surrounding area, and take the time to do some research.
When living in a townhouse development, freehold property, or even sometimes sharing a balcony wall, there may come a time when you have issues with a neighbour. But before any dispute turns into a downright feud with legal implications, you might want to consider the following:
Property co-ownership | What happens when your partner dies?
A Property24 Reader asks: “My husband has died. We own our property 50/50, I am sole beneficiary. We are married out of community of property. I understand that property needs to be transferred to myself as sole owner. The cost involved, the attorney maintains, is based on the market value of the 50% share of the property.
"Is this in fact correct as it seems a bit skewed given the fees are probably worked on the value of the property. Surely it should be at the same value as on the original deed of title seeing I am his spouse and heir. Is the fee structure something that can be validated by law or am I at the mercy of my attorney’s fee structure?”
Jaco Rademeyer, from Jaco Rademeyer Estates, responds:
Co-ownership is often utilised as a strategy to enter the property arena. Whether between friends, family or spouses it is an effective means of spreading the financial risk. As would be expected, co-ownership is not as simple as sole ownership and it is therefore recommended for prospective buyers to always consider entering into a co-ownership agreement to regulate the details of their co-ownership.
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