AN OVERVIEW OF PROPERTY LAW - Pg4


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Green property lineWHERE OUR LEGISLATION IS HEADED

We do not believe that even our current government is foolish enough to tamper too much with the importance of upholding contracts as a social mechanism that must be upheld in our courts. Without the "sacredness" of contract being in place, business and the economy would slow to a pace that prevents all development and growth.

Contracts are tangible assets that can be valued and traded. Credit is provided by financial institutions on their validity. Take away the solidity of contracts and you take away the fragile fabric that holds together any emerging economy.

Take away the absolute validity of contracts and you create an environment hostile to investment and entrepeneur risk.

That being said, mechanisms must be introduced to to correct the imbalances present as discussed on page 3 of this section. The problem lays in doing so without :
  • further eroding the legal standing the average small landlord who only owns one to five properties, who already feels that the law offers protection to the tenant only
  • removing the upholding of contracts as a given in our courts
  • restricting an ever tightening noose on free enterprise
We believe that given the mismanagement of our economy and key parastatals, that we will not see significan growth in our economy for some years, resulting in continued economic imbalances, continued stress on lower and middle income rental housing suppy and increasing discontent in the disenfranchised sector of the populace.

In order to appease this discontent and demand on lower segments of rental stock as well as politically appealing to a large voter block, government will continue to provide either new legislation or regulations as allowed within current laws, that place rental pricing and other pressures on landlords. Unfortunatey this will obviously discourage investment into property, further excacerbating the situation, creating even more demand for socialist style rental mechanisms.

The solution to unfair rental practice lays in healthy competition. No one will opt for a bad property with high rental when there are better properties at lower rentals available. That is simple common sense.

This means :
  • Increased funding into social housing projects
  • Government into property providing rent to buy stock
  • Incentives to developers and investors willing to enter into the lower end of the rental stock market
  • Improved economic policies in order to stimulate growth in the free market economy
  • A restructured and innovative subsidy scheme for first time and disadvantaged buyers
What route government decides to take is to be seen.

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