Will Land Expropriation mean I lose my Home?
There is a lot of uncertainty surrounding the government's plan for land expropriation, and more than a few homeowners have expressed their concerns.
I know of quite a few people that are putting their home on the market as concerns for land expropriation leave them feeling unsettled. But homeowners should consider that our President has mentioned on several occasions that the government is looking at derelict inner-city buildings, unused land, and that homeowners should be aware that bonded or owned properties will not be targeted.
Homeowners who have the means to relocate to foreign climes are doing so – or seriously considering it.
It's not just local homeowners who are feeling uneasy, foreign residents and property investors are also feeling uncertain as to what land expropriation may mean for South Africa, and while The Constitution makes provision for land expropriation without compensation, and the obligation has been placed on government to pursue land reform via restitution, redistribution and tenure reform, Government backs it's position to strengthen the property rights of all South Africans, whether they own property or not, and to make land accessible to those who work it.
In a recent article, bond originators Ooba, have said that privately owned land is not the target. Rather the focus is on unused land, derelict buildings, purely speculative land holdings, and abandoned inner-city buildings, among others and that anyone looking to buy a home shouldn't let land reform delay dreams of homeownership. They ask property buyers to consider the situation as a cup half full rather than half empty. Now is definitely a time to invest in the property market and banks continue to lend aggressively, signalling that they are confident that land reform will be done in a manner that will not compromise South Africa’s residential property market.
Adapted from original article by Ooba