If you have been watching or reading the recent news you should have heard Tito Mbweni, our new Finance Minister give the recent medium term budget review on 23rd October. In summary, it showed reduced revenues, higher than expected spending, reduced employment rate and low forecast growth.
As the economy has a major impact on the housing market, it seems as if the slow down in house prices and sales in Kirstenhof will continue in the medium term and possibly about 3 years before we see an upward trend again. House prices are cyclical; they go up a lot, come down a little but always in the long term outperform inflation. This means property will always be a solid longer-term investment.
One buys and sells in the same market, and now is a great time for first time buyers, and those looking to upscale. Kirstenhof fits this bill very well.
And please note that we have talked to people from Europe, Canada and Asia - also complaining that the house market is slow, and prices are down... So we are not alone!
In tough times like these, it is important to choose your property agent carefully, one with the experience and the backing of a reputable company to sell your property and we hope you choose Seeff!
Key points from Budget:
- Compared to February 2018 budget, expenditure up by R12bn and revenue down R83bn for the period up to Feb 2021.
- Government debt as a % of GDP is up and continuing to grow, projected to reach 59.6% in 2023.
- Income tax and VAT revenues good, corporate tax and property tax revenues are down.
- More spending on job creation and social grants will be funded by higher borrowing.
- Parastatals (SAA, Eskom, Road Accident Fund etc) all draining the coffers dry. We hope to see this addressed.
- Public sector wage bill is 14% of GDP and given the above inflation wage increases and no retrenchments, this can only get higher.
The government still wants to bring in National Health, however, this is an ambitious long-term project.
Home is our Story and property our passion.
To discuss your next property move, be sure to contact us.
Seeff Southern Suburbs | +27 21 794 5252 | southernsuburbs@seeff.com