His statement and announcement that exchange controls on individuals, companies and pension funds would be eased dramatically with immediate effect, has been welcomed in the International and local markets. Also, with the fact that the rand has gained nearly 30 percent against the dollar since the start of 2009 as low rates in developed countries push investors towards emerging market assets offering higher returns. Well, ...
When he presented his medium-term budget policy statement in parliament, Pravin Gordhan said exchange controls on individuals, companies and pension funds would be eased dramatically. and that by using their foreign investment allowance South Africans will now be able to move R4, 000,000.00 out of the country every year whereas before that was only once before. A great leap. If you wanted to move more you could apply for this as well....so we certainly see big changes.
"That's the money that's coming to Brazil and South Africa. That's the money that's coming in on a short-term basis and can pull out any time," Gordhan said this mornining..
What else was offered, well there has been an increase of both the individuals annual travel allowance and the annual discretionary allowance, from R750, 000 to R1, 000,000.00.
The scrapping of the 10% exit levy on all blocked assets for those who have already emigrated, is a very welcome sign for the future.
"Well with the strong rand, we will certainly see a call for more fund movement out of SA especially from people who have assets such as properties that are either mortgaged or have equity in them and they want to raise home loans or further loans on those mortgages. A great time to maximise the benefits of the strong rand", says Chris Green a Financial specialist in SA>.With interest rates at 9.5% and the lowest in the last 30 years, it is time that South Africans abroad and foreigners who own property in SA, jump on the band wagon. Call your mortgage broker today.
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