Budget comment property - Aida

Pravin's hand steady, says property chief

Finance Minister Pravin Gordhan has mapped out a steady course for the South African economy in challenging times, says a leading property figure.

Young Carr, CEO of Aida National Franchises, says the Budget has addressed the "real issues" facing the economy and the conservative, yet realistic approach is exactly what was needed.

"A steady hand on government expenditure, with specific reference to waste and corruption, will free up much-needed revenue that can profitably be employed elsewhere.

"The R1bn allocation to speed up housing provision and the R500m allocation for bulk water infrastructure will improve prospects for the local property market, which is slowly coming out of a severe slump.

"We also welcome the emphasis on rural development, since it ties in with job creation over the longer term - a much needed strategy for
the wellbeing of the property market as a whole - and the R2,5bn recapitalisation of Land Bank will give added impetus to economic and housing development in these areas.

"Government initiatives to sit down with commercial banks to address bank charges are also to be welcomed. Every small saving that will put more money in consumers' pockets will contribute to kick-starting an economic revival.

We are also pleased that consumers will not be faced with increases in personal tax this year," Carr says.

Article by: www.aida.co.za