If, as is commonly stated, home ownership is the cornerstone of a stable society and a prime motivator toward working and wealth generation, then it behoves governments to encourage it '“ and, when economies decline, to take measures to ensure that as few homeowners as possible lose their homes.
So says Tony Clarke, MD of Rawson Properties, regarded by many as the fastest growing residential property marketing group in SA.
'While it is true that governments should not be expected to prop up failing enterprises and mismanaged companies, there is merit in what the UK, European and Australian governments have done to keep home ownership on track'
The rescue measures elsewhere (most notably in the Eurozone), said Clarke, have included limited tax relief for buy-to-rent investors (especially those unable to get tenants) raising the capital gains tax exemption threshold on primary homes and (in some cases, lowering the capital gains tax on homes) facilitating purchases by foreign buyers, allowing interest only bond payments for a specified time, making repair and maintenance costs on all homes (including the primary home) tax deductable, granting tax relief on 20 to 40% of bond payments, giving a tax deduction if the rented home is occupied by the very old, pensioners or the disabled, and giving tax breaks to homes that reduce energy consumption, have used recycled materials in their construction or employ and train off-the-street labour.
In South Africa, said Clarke, a recent survey by the Race Relations Institute, has shown that 60% of blacks and 46% of other races have completely paid off their homes. This, he said, probably means that too few blacks are becoming homeowners and that some 50% of the total local home owning fraternity are still in debt to the banks '“ and right now likely to be struggling.
'Repossessing property all too often results in a lose-lose situation for the former owners, the banks and the economy in general. At Rawsons, having in recent months seen the serious effects of this as never before, we would welcome an opportunity to meet with the authorities and the banks to work out alternative ways of keeping distressed owners in possession'
For further information contact Tony Clarke on 021 658 7100 or email tony@rawsonproperties.com.
