Home buyers increasingly shy away from dysfunctional municipalities | Business

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People looking to buy residential property will likely increasingly shy away from cities and towns with dysfunctional municipalities, cautions property consultancy and research firm Rode & Associates. | News24_Business

Municipalities are not prioritising spending on critical infrastructure maintenance, resulting in service delivery failures.People looking to buy residential property will likely increasingly shy away from cities and towns with dysfunctional municipalities, cautions property consultancy and research firm Rode & Associates.

The latest Rode report on the property market refers to the trend of potential buyers avoiding dysfunctional municipalities in general as part of its outlook for the housing market. Nominal house price growth was 3.6% over the first 11 months of 2022, marginally slower than the 4.2% growth for the full 2021, according to FNB data. However, in real terms , house prices fell sharply as the consumer inflation rate averaged 6.8% over the same period.

Consultants were paid R1.26 billion to help improve the financial reporting of municipalities, even though the finance units of municipalities were paid over R10 billion in salaries.

 

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_Business A no brainer I would say. Why invest your life savings in an area where you get no growth or services.

_Business People should shy away from South Africa, it's a shit hole

_Business Of course

_Business And which city or town in SA doesn’t have a dysfunctional maspala?

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