Insights from Herschel Jawitz ahead of the 2026-27 Budget Speech
Ahead of Wednesday's 2026/27 National Budget speech, Jawitz Properties anticipates limited changes to key property taxes amid fiscal constraints, maintaining support for the residential market's gradual recovery.
Herschel Jawitz shares his perspective, offering his thoughts on the factors shaping the property market and the opportunities and challenges homeowners and investors may face. Drawing on his experience in residential property, he provides insight into what stability and fiscal discipline could mean for market confidence and decision-making.
Transfer Duty Threshold
The current exemption threshold stands at R1.21 million, raised in the 2025 Budget to ease entry-level buying, with brackets adjusted for inflation. "Expect no upward adjustment this year, as analysts note Treasury's revenue needs limit further relief, though stability would aid first-time buyers in a market with improving affordability."
CGT Threshold
Capital Gains Tax rates remain unchanged, with individuals at a 40% inclusion rate (effective max 18%), R40,000 annual exclusion, and R2 million primary residence exemption. "No increases in the exemption expected as this is essentially a luxury tax."
Other Key Expectations
"Fiscal discipline could further boost consumer and housing sentiment and positive signals like municipal funding oversight may enhance property confidence, supporting already stronger demand and transaction volumes in the residential market."
With the Budget set to be unveiled tomorrow, Herschel Jawitz encourages the market to stay tuned. Let’s see what it holds and how it may shape the property landscape in the year ahead.