People & News

Trevor scores R8 billion

The property market has become the goose that lays the golden egg for the government with almost R8 billion having been collected in transfer duties for the year to September. This represents a massive increase in both nominal and real terms. In 2000 for instance, R2.2bn was collected; this rose to R6.6bn in 2004 and it is expected to surpass R8bn for 2005. Given that the average nominal house price is R721,100 (source Absa), a homebuyer today will pay some R47,000 in transfer duties or 8% on the value above R330 000.

Anton de Leeuw, CEO of YDL property educationalists, says that the exemption threshold should be lifted to at least R400,000 to make the property market more accessible and affordable, especially to first-time homebuyers. In the Moneyweb interview (see link below), Johan Snyman of Medium Term Forecasting Associates finds it amusing that the Minister benefits from this tax, yet gets conveyancers to collect it for him.

Article on Moneyweb and the Moneyweb interview

Reader Comments:

Tracey Watson-Gill 11/11/2005:

I think it's time the Government made some sort of concession for the conveyancing profession, or paid us some kind of commission, considering that we collect transfer duty for them, stamp duty sometimes, we collect rates for the local authority - we even collect outstanding VAT and income tax sometimes!!

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