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IOL News
a day ago
- Business
- IOL News
Buy now or miss out: Johannesburg property market heats up
As interest rates decline, Johannesburg's property market is heating up, presenting a golden opportunity for buyers and investors. Don't get left behind—find out why experts are urging immediate action! Image: Karen Sandison / Independent Newspapers In a decisive move that could reshape the real estate landscape in Johannesburg, the South African Reserve Bank has cut interest rates by 25 basis points, bringing the home loan interest rate to an unprecedented low of 10.75%—the most favourable level since February 2023. This announcement has sparked urgent calls from property experts for prospective buyers and investors to act swiftly in this buoyant market. Denese Zaslansky, CEO of FIRZT Realty Group, emphasised the growing momentum in property demand since rates began to decline in September last year. 'We have witnessed a remarkable 38% surge in sales and an average price increase of 6% over the past six months,' she noted, pointing out that desirable locations in Johannesburg are already seeing diminishing stock levels. The implications of today's rate cut are significant for both first-time buyers and seasoned investors. Given that the current average home price in the city is approximately R1.6 million, qualifying for a home loan currently requires a gross monthly income of about R54,200. This figure is R3,600 less than it was this time last year, offering a golden opportunity for many who may have previously felt locked out of the market. Zaslansky warns, however, that time is of the essence. 'If property prices rise by just 5% in the next year, prospective buyers will face higher monthly bond repayments and will need to increase their monthly income by R2,700 to qualify for a home loan, should interest rates remain stable. This will erode the advantages gained from the recent rate cuts,' she cautioned. Today's interest rate decline comes in response to inflation metrics consistently lingering below the Reserve Bank's target range of 3% to 6%. With inflation reported at 2.8% in April, and economic growth failing to gain real traction, the decision reflects a broader shift aimed at boosting consumer confidence and justifying spending amid turbulent market conditions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading According to Zaslansky, a turnaround is imminent. 'We are highly optimistic that we will see rapid advancements in the property market as demand escalates. The number of new developments sprouting across Johannesburg is a clear indicator of rising investment in property, stimulating both job creation and overall economic growth in the region.' With the property market in Johannesburg offering rare opportunities for savvy buyers, Zaslansky's message is clear: the time to act is now. Ignoring this window may mean relinquishing the chance to secure a home at today's favourable rates and prices—an opportunity that may not last long as the market continues to evolve. BUSINESS REPORT
IOL News
6 days ago
- Business
- IOL News
Mayor defends water tariff increase while providing free water to vulnerable families
Left: Ilembe District Municipal Manager Sazi Mbhele, Mayor Thobani Shandu, and Director of Technical Services Ncingisa Mbole at the media briefing on Wednesday to clarify budget decisions. Image: Supplied As part of a response to the Democratic Alliance's demands for the 0% water tariff increase, the water-stricken Ilembe District Municipality has decided to supply 10,000 litres to poor households every month. In a R1.6 billion budget tabled by the district mayor, Thobani Shandu, on Tuesday, the municipality approved a revised 13% increase from 13.5%, which was initially proposed, dismissing the DA's demand as highly unreasonable. The mayor said it was not feasible not to increase the water tariff while Umngeni-Uthukela Water, which sells water to municipalities, has raised tariffs by 13%. Shandu said the municipality believes that more than 30% of the approximately 700,000 people living in the district will receive free water under the 10,000 litres cushion. The mayor said there would be a drive to encourage the poor households to register under indigent programmes so that their financial status would be assessed and be placed under the programme. 'It was impossible for us not to increase water tariffs while the water utility where we buy water from has increased. We were reasonable enough to at least increase our tariffs by the same amount. 'The DA must understand that we are a rural municipality with no less revenue collection, so we are like cities like eThekwini, which collect more residential and business rates, and those cities can easily reduce water tariffs and take money from other sources to cover water costs,' said Shandu. Out of this budget, the municipality set aside R357 million for capital projects, leaving the rest for operational costs. The municipality has a surplus of R14,6 million. Shandu said he believes the budget reflects a strong commitment to pro-poor service delivery, infrastructure development, and financial sustainability. Clarifying the qualifying criteria for free water, Shandu said all homes with a value of less than R130,000 of families with a combined monthly income of less than R50,000 will qualify for the free water programme. He added that the charges will also be capped at homes worth R5 million, meaning that even those families living in homes worth more than R5 million will not pay more than 13%. The district covers the three rural local municipalities of Ndwedwe, Mandeni, and Maphumulo as well as the semi-urban Greater KwaDukuza Municipality. In its response, the DA rejected the mayor's explanation, saying the party would force the municipality to reverse the increase through other mechanisms, including legal action. The DA's district constituency head, Sakhile Mngadi, who led the water march earlier, said the municipality's problem was irregular expenditure, which was picked up in the Auditor-General's report. Mngadi said that 15% of the budget went to fruitless and wasteful expenditure, and the municipality shifts its poor financial management to the poor people by burdening them with avoidable tariff increases. [email protected]
The Citizen
23-05-2025
- The Citizen
Man who stole equipment that prevents plane crashes sentenced
The equipment valued at over R1.6 million was stolen from OR Tambo International Airport and never recovered. Emmanuel Mdakane appeared in the Kempton Park Magistrate's Court on Friday where the sentence was handed down. Picture: Instagram/Tumi Sole. A 44-year-old man who stole a traffic collision avoidance system (TCAS) processor that helps prevent mid-air plane collisions between South African Airways (SAA) aircraft has been sentenced to 10 years in jail. Emmanuel Mdakane appeared in the Kempton Park Magistrate's Court on Friday where the sentence was handed down. Theft The TCAS processor, which helps prevent plane collisions valued at over R1.6 million, was stolen by Mdakane in January and February 2018 from the OR Tambo International Airport and was never recovered. National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane said the court found Mdakane guilty of theft on 16 May 2025 based on evidence gathered by Saps Sergeant Mphephu Mabogo's investigations. 'The evidence revealed that the accused sold the TCAS processor to a complainant for R340 000, collected it and only refunded R40 000. The TCAS processor is a component that helps prevent mid-air collisions between aircraft. 'Junior state advocate Siyabonga Futshana further presented compelling evidence that exposed the accused's deceitful actions. The court ultimately rejected the accused's version of events, deeming it not reasonable,' Mjonondwane said. ALSO READ: SA Civil Aviation probes cause of aircraft crash in Mpumalanga Sentence welcomed Mjonondwane said the NPA welcomed the decade-long prison sentence handed down to the accused. 'This outcome underscores the justice system's resolve to tackle serious economic crimes and ensure that perpetrators are held accountable. The conviction and sentence reflect the NPA's unwavering commitment to upholding the rule of law and protecting public resources. 'We commend the prosecution team and law enforcement partners whose efforts led to this successful prosecution. This case serves as a clear message that financial crimes will not be tolerated and those found guilty will face the full might of the law,' Mjonondwane said. Cyberattack Earlier this month, SAA was the target of a 'significant' cyberattack that disrupted several internal operational systems. The attack temporarily disrupted access to the airline's website, mobile application and several internal operational systems. SAA said interventions minimised disruptions to core flight operations. ALSO READ: SAA hit by 'significant' cyberattack disrupting internal operations
IOL News
23-05-2025
- IOL News
Man sentenced to 10 years for stealing R1. 6 million aviation safety equipment
A 44-year-old man has been sentenced to 10 years in prison for stealing a critical aviation safety component worth over R1.6 million from South African Airways, raising serious concerns about aviation security and the integrity of public resources A 44-year-old man has been sentenced to 10 years in prison for stealing a critical aviation safety component valued at more than R1.6 million from South African Airways (SAA) at OR Tambo International Airport. The Kempton Park Magistrates' Court on Thursday handed down the sentence to Emmanuel Mdakane after convicting him of theft on 16 May 2025. The court found that, between January and February 2018, Mdakane stole a Traffic Collision Avoidance System (TCAS) processor — a vital part of aircraft safety systems designed to prevent mid-air collisions. The processor was never recovered. National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane said Mdakane sold the stolen equipment to a complainant for R340,000 but refunded only R40,000 after collecting the money.
IOL News
22-05-2025
- Business
- IOL News
Government debt projected to hit R6 trillion as South Africa borrows R1. 6 billion daily
Finance Minister Enoch Godongwana told Parliament that the gross government debt was expected to increase from R5.69 trillion in 2024/25 to R6.09trln in 2025/26, and R6.82 trln in 2027/28. Image: Supplied South Africa's public debt is set to surge to unprecedented levels in relation to gross domestic product (GDP) over the 2025/26 fiscal year. This comes as the national government will be borrowing an average of R1.6 billion per day on the back of rising spending demands and insufficient additional revenue. According to the Budget Review 2025 documents released on Wednesday, the gross borrowing requirement for the government has increased from R579 billion at the time of the 2024 Budget to R588.2bn in 2025/26. This means that the government's borrowing requirements will see Treasury going to the market to raise at least R1.61bn everyday of the year, up from a daily average of R1.58bn. The National Treasury said this borrowing requirement will be financed through a combination of domestic short- and long-term loans, foreign-currency loans and the use of cash balances. Finance Minister Enoch Godongwana told Parliament that the gross government debt was expected to increase from R5.69 trillion in 2024/25 to R6.09trln in 2025/26, and R6.82 trln in 2027/28. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ However, he said the gross borrowing requirement was projected to decline by a total of R30.2bn between 2024/25 and 2027/28, mainly due to lower projected spending relative to the March 2025 Budget Review. Godongwana said the May 2025 Budget Review aimed to stabilise government debt in 2025/26 while increasing infrastructure investment to support higher economic growth. He said additional revenue and expenditure measures were required to stabilise the public finances in the context of weaker-than-anticipated global and domestic economic growth. "In 2025/26, government debt is projected to stabilize at 77.4% of GDP. While this is 1.2% higher than projected in the March 12 budget, it is mainly due to lower nominal GDP," Godongwana said. "The main budget deficit decreases by R8bn over the Medium-Term Expenditure Framework, compared to our estimates in March. This narrower deficit is enabled by the steadily expanding primary surplus. By 2027/28, the primary surplus will grow from an estimated 0.8% of GDP in this financial year to 2.1%." Last week, S&P Global ratings agency warned that South Africa's debt-to-GDP ratio could rise as high as 80% in the medium-term, a prospect that would result in the government being constrained to meet basic service requirements.
