PRE BUDGET SPEECH 2023 COMMENTS
Herschel Jawitz, CEO of Jawitz Properties comments ahead of the Budget Speech 2023/24 which is taking place on Wednesday, 22nd of February.
Herschel communicates that given the pressure on the government in terms of government spending in an economy that is barely growing, it is unlikely that there will be any property related relief in the budget.
The current transfer duty exemption is at R1 million, below which transfer duty is not payable. Given the pressure on disposable income which impacts on first time buyers, it would help this sector of the market if this threshold was increased. First time buyers are very 'cash sensitive' and even a marginal increase in this threshold might impact positively. However, an increase in the threshold means less money for government and the government needs money.
The transfer duty percentage brackets and the R2 million capital gains tax exemption are also unlikely to change.
In closing, at a broader level, people will be watching to see how the government is going to create growth, fix Eskom and how much this will cost and what personal income tax relief there will be given the current high inflation of 6,9%.