Proposed Tariff Increases Set to Have a Big Impact on All South Africans
Whether you’re a homeowner or a tenant, the latest proposed tariff increases are set to have a significant impact on us all.
Set to kick in from July 2021, Grant Smee, Managing Director of Only Realty says that an anticipated increase in municipal water and sewerage costs of around 6% and 15% for electricity will have a major effect on consumer’s wallets.
“We have enjoyed some of the lowest interest rates in history but the effects of increased tariffs is expected to see substantial increases in property ownership costs depending on the size of the household,” adds Smee.
Smee says that this will have a knock-on effect on the already embattled residential property industry which has only just started its road to recovery, largely thanks to the low-interest rate.
“Taking the overall ownership costs associated with a home – including increases – is critical when budgeting for a home. Sadly, both the market and consumers will feel the effects of poor planning and strained budgets.”
Smee offers three tips for savvy saving in a time such as this:
- Save: “We have a few months before this kicks in, be sure to do your sums and set aside savings each month. If you do this correctly, you could stand to save a few months’ worth of increased rates.”
- Tenants and landlords need to work together: “Landlords who have tenants with financial troubles must keep the lines of communication open. Plan and budget in a way that benefits both parties and be sure to put this in writing.”
- Become energy efficient: “While you can’t control everything, you can control your consumption. Make sure that you are working wisely with electricity and water, and in cases where you are working from home and receiving allowances for electricity and WiFi, be sure to chat to your employer in this regard.”