Budget Speech: Trevor Manuel: 2008 - 2009

Click here to VIEW LATEST BUDGET SPEECH 2009 /2010 - Just added

Howdy Folks: This is just a quick post to show everyone the updated and latest budget speech. Most people finding our website are hitting last years 2007/2008 budget speech and hence thinking that there's no change occurring in South Africa ;-)

So before any protests start here's a copy of the latest 2008/2009 budget speech by Trevor Manuel. It is really big, and if you'd like to download a copy you can download it from the Old Mutual Site (that's where I stole it, thanks Old Mututal)... http://www.oldmutual.co.za/markets/south-african-budget-2008.aspx

For those of you who'd prefer a brief highlight of the Budget Speech by Trevor, here it is!! Let us know your thoughts please!!

2008 Budget highlights - Trevor Manuel - South Africa

The economy and fiscal stance:

• GDP growth of 5 per cent in 2007, with growth averaging about 4.3 per cent a year over the forecast period.
• CPIX inflation rising to 7.1 per cent in 2008 before declining to 4.9 per cent in 2009.
• Gross fixed capital formation projected to rise from 21 per cent of GDP in 2007 to 24 per cent in 2010.
• Estimated consolidated national budget surpluses of 1 per cent in 2007/08 and 0.8 per cent in 2008/09, with projected surpluses over the three-year period.
• Real growth in consolidated government non-interest expenditure of 6.1 per cent a year over the MTEF.
• Government contribution to national savings projected to rise from 0.8 per cent of GDP in 2006/07 to 1.5 per cent in 2010/11.
• R60 billion to support Eskom’s capital financing requirements over the next five years.

Tax proposals:

• Total tax relief for individuals of R7.7 billion.
• Reduction in the corporate income tax rate from 29 per cent to 28 per cent.
• A simplified tax regime for small businesses.
• R5 billion in tax subsidies over the next three years for labour-intensive industries and industrial policy.
• An electricity levy of 2 cents per kilowatt hour.
• Fuel (petrol and diesel) taxes to increase, from 2 April 2008, by 11 cents per litre.
• A packet of 20 cigarettes will cost 66 cents more.
• A 750 ml bottle of wine will cost 12 cents more.
• A 340 ml can of beer will cost 5 cents more.
• A 750 ml bottle of liquor (spirits) will cost R2.17 more.

Spending on public services Additions to spending over the next three years:

• R33.2 billion for provinces mainly for school education, health care, welfare services and roads.
• R6.5 billion to municipalities for the extension of free basic services.
• R12.5 billion for social grants, including extension of the child support grant to children up to their 15th birthday in 2009 and lowering of the age of eligibility for men to receive the old age pension to 60.
• R9 billion in conditional grants for school building, HIV and Aids, hospital revitalisation and school nutrition.
• R8.2 billion for public transport, roads and railway infrastructure.
• R6 billion for housing, water and general built environment infrastructure.
• R2 billion for 2010 FIFA World Cup Stadiums and related infrastructure.
• R2.5 billion for industrial development and small, medium and micro enterprises.
• R2.6 billion for agriculture and land reform.
• R2.7 billion for information technology network infrastructure, police forensic laboratories and additional police personnel, and R2 billion for correctional facilities.
• R1.4 billion for higher education, research and knowledge development.
• R1 billion for programmes under the expanded public works umbrella.

WizardMan Out!

Buying a home as a foreign national in South Africa

It's a question that I get asked over and over again and for some reason have failed to post anything on it. It's also a topic that is not easy to find anything on?

I'm also pretty tired of estate agents informing clients incorrectly (I won't mention any names but you know who you are) and then leaving it up to us poor bond originators to sort out your dirty work!

SO HERE IT IS!

Scenario 1:

I'm non South African citizen living abroad looking to invest in South African Real Estate. What mortgage amount do I qualify for?

Non residents and Non S.A. citizens qualify for a 50% loan. The banks require a 50% deposit to be made from a non South Africa banking account upfront, prior to the loan being granted for 50%.

I'm a non South African citizen living and working in South Africa. What mortgage amount do I qualify for?

Non S.A. residents working and living in South Africa whether permanently or on contract (Depending on contract period - varies from bank to bank) qualify for loans of between 60% and 100%. The going rate and what we average is 80%. My Suggestion, is don't even apply for 100% loan if you can avoid it. Rather put a 20% deposit and your chance of getting the mortgage increases ten fold. DON'T EVEN BOTHER GOING FOR A MORTGAGE WITH TRANSFER AND REGISTRATION COSTS INCLUDED!!! YOU WILL NOT GET COSTS INCLUDED. Estate agents will try and convince you that this is possible, it's not!

The only time you can apply for costs in your home loan and you're a foreign national. This is not 100% guarenteed and the banks don't really like giving costs.

1. You have South African citizenship and you're a first time home buyer.
2. Your husband or wife is South African and you're a first time home buyer.

Make sure that before you believe what the Estate agent sells you!!!! That you do your homework first. Remember once you've signed that Offer to Purchase you're legally bound.

WizardMan Out!

VALENTINES DAY HOME LOAN SPECIAL!

JUST KIDDING!!

HAPPY VALENTINES DAY TO ALL!

XXxxxOO00OOxxxXX

LOVE AT FIRST SIGHT - A Bond Origination Love Story

MORTAGE SA

Buys LOANLINK

and Gets it on as the Numero 1

Bond Originators in SA.

Wowee!!!!!

NOW THATS WHAT I CALL LOVE!!!!

2008 - LETS GET IT ON!!! Dont be chicken!!!!!!

Boy has 2008 kicked into gear.

At the end of last year things were looking really good!

Now - Panic, Panic, Panic - what a lot of crock.

What has scared everyone and stuck that negative nonsense into their souls!!!

Having to buy candles and parrafin lamps (Like ouma grootjie did!)
Having to check out Canada, Aussie or anywhere safe. Maybe IRAQ
High interest rates, markets crashing like zeppelins, NCA - Oh my G..!

Panic- Yes/ NO - Switch off the lights to save money for your one way ticket!!

C'mon folks stop panicking! This is not the first time there’s been doom, gloom and boom!(for the Capetonian's). Every few years the same thing happens. Guys weve survived wars, revolutions, we even through off the shackles of apartheid(Can I mention that word!! as a whitey). We experience huge economic growth and everyone is a property baron, developer or even better a lawyer!. We buy on credit, credit, credit things like homes, buy-to-let (Thanks Nedbank) and SUV's.

Now we are so pumped that the economy melts a bit as it overheats, and then panic, panic, panic - because the economy seems to be collapsing when in actual fact it’s simply making an adjustment back to a reasonable level.

It happened in 1989, when SA defaulted on its international loans and the stock market and Rand crashed, it happened in 1994 when the ANC took power and everyone thought war would break out, it happened in 1998 when interest rates hit 25% (you remember that dont you!!) and you couldn’t give away your house, and it happened with 9/11.

And guess what - were still here!!! hmmmmmmmmmmm

And as Alan says Quote " I think 2008 will be a tough year, but I also see it as a great opportunity to seize the day whilst everyone else is whinging and get a front-seat on the inevitable boom that we’ll experience in 2009, 2010 and beyond.

Make sure you make a mental note of everything that is happening now, because it will happen again and again, and if you don’t recognize the symptoms you’ll be suckered into the same negativity, and forget to look for the opportunities.It’s easy to be negative. Subconsciously, you WANT to be negative!

Whenever you open the papers they tell you about the goriest hi-jacking and the most corrupt politicians. Why don’t they dedicate more pages to the fact that Joburg is the world’s biggest man-made forest, Pretoria or Thswane according to Gwen (Our first lady) is the centre of SA investment, or to the corruption-free achievements of the vast majority of public officials?

Because bad news sells. Good news is boring.

SA still has the best weather in world! We’re lucky enough to possess a huge chunk of the world’s resources, i.e.: gold, platinum, coal, iron. The growth in India and China will continue to accelerate (India and China sign 10mil new mobile customers every month), and so will their demand for our resources. The government has already embarked on massive infrastructure projects (some of them a tad late, i.e.: electricity), and this will pump money into the economy.We are all lucky enough to be a part of the birth of a massive and all-encompassing industry. The Internet has and will continue to change the world. The enormity of its impact is up there with the wheel, electricity, TV, telephones, and possibly man’s greatest ever invention, coffee. Not only does it open up an entirely untapped world of commerce, but it is also the ultimate disseminator of information and news.

Apartheid would not have lasted 40 years if the Internet had existed! And you’re part of it! I’m looking forward to another year of complaints, issues, parties, roll-outs, billing runs, irate customers, happy customers, faulty elevators, cops winning battles etc, etc. The nice stuff makes me feel good, and the challenges remind me why we can beat the competition. " Thanks Alan

But I think what is even more important, if you are going to buy, buy now, property will increase later. 2008 is starting out to be a brilliant year and we should enjoy every moment of it.

So stuff the doom and gloomers - get solar heating gadgets, be part of the save energy campaign. Put your glass, paper and plastic in seperate binds. use your scraps as compost and grow your own organic beggies! Love your felloww sufferers oops I meant South Africans and lets show the world that we are not woozies we are TUFF!