Ivo Vegter writes in the Daily Maverick earlier this week:
As I have pointed out before, the inability to own a house free and clear means that occupants of government or low-cost housing are essentially serfs living in feudal vassalage.
They can’t move to where work or higher wages can be found, because they will lose their homes. They can’t put their dwellings up as collateral for loans to invest in businesses, because banks cannot accept property they cannot sell in case of default. If shacks are built on land the tenants or their landlords do not own, private owners do not benefit from making long-term capital improvements. Shack owners will inevitably find greater returns for their limited income investing in business ventures, movable assets, education, or even clothing and food.
Just another way the socialist ideology and policies of the ANC destroys the potential wealth creation that could come from millions of property owning South Africans.
Read the entire article here.