Dispassionate and harsh economic measures are dispossessing the people of hope and their birthright

“Dispassionate and harsh economic measures are dispossessing the people of hope and their birthright”
2:13AM, Saturday, 12 Apr, 2008
South Africa is already experiencing social unrest due to the acute housing shortage and overcrowded living conditions being experienced by the poorer majority. State housing schemes have all failed to deliver and funds have been misused due to flawed tendering processes, corruption and inept management. Present fiscal policy is hurting and slowing the key sectors that could remedy and stabilize the entire economy. Three budgets ago the government reduced transfer duty in line with its stated policy of assisting the entry level buyer to acquire a home; this has now effectively been negated. Now these buyers are the most vulnerable and most likely to lose their assets. How unfair and crazy is this? The man in the street did not cause the spike in the inflation statistics through reckless spending. The raising of interest rates and the fuel price are to blame. The sectors that should be leading the way are the banking and property Industries It is a known fact that developing nations such as South Africa require high growth in order to close the wide chasm between rich and poor The following Afro-centric remedies need to be implemented almost immediately; Interest rates on all mortgages of one million rand and less should be lowered to a pegged interest rate of not more than eight percent and lowered as things improve. This would be subsidized by the higher end loan sector whom are not in danger of losing their homes in a high interest rate environment. The onerous and unwieldy process should be made more user friendly for the less sophisticated and more informal prospective home owners. Innovative people friendly homes already exist in other parts of Africa that are safer, healthier, enviro-friendly and economically built because its materials are readily available Mozambique villages are charming examples of low cost thermally efficient and flame proof homes that are mostly built with bamboo, latte, mud or gravel that is plastered and very weatherproof. These measures would kick start the property market with the new buyers coming in at the bottom end. Developers could now focus on this sector of the market with its resultant job creation. Energy saving features should be introduced and subsidized by Government & Eskom. It is mystifying why our economists follow the West whom are unable to keep their own economies afloat and are blind to our own unique realities. The west are presently dropping the already low rates to avoid their economies going into recession, but our “experts “have chosen to raise them further. The logic of this is mystifying and most baffling. These public servants are getting paid generous wages from the state coffers so are immune from the hardship of belt tightening. This nation is capable and has achieved great and miraculous things in the past as well as producing some of the finest human beings and leaders on the planet. We are a special people with our own unique destiny and deserve that caliber of leadership to liberate us all. Best of all might we might yet see the end of the Pseudo-Tuscan eyesores that litter our country and rediscover our own African architectural style. Harold Kolnik Principal: Jawitz False Bay Property If you would like to buy or sell property in Cape Town's False Bay area, please don't hesitate to visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.