select
|

Keeping repo rate stable makes sound economic sense

While it appears South Africa’s repo rate still remains in a rising cycle, yesterday’s decision by the Monetary Policy Committee to pause and keep the rate stable makes sound economic sense given the stagnant economy and ongoing cost pressures exerted on consumers, says Dr Andrew Golding, CE of the Pam Golding Property group.

“Household debt combined with rising interest rates has impacted consumer affordability, with South Africa’s largest bond originator, ooba, reporting a slowing in activity among first-time home buyers.

“The pause in the repo rate will provide aspirant and existing home owners with a further assurance of the sound medium to long term investment potential in property.”

Dr Golding says despite the prevailing economic challenges and socio-political issues currently hitting the news headlines, sustained confidence in the property market remains a bright spot on the radar.

“Successfully concluded transactions are also facilitated by the normal churn of activity as people relocate for a host of reasons including for business purposes, lifestyle change, access to educational facilities and pure investment.” 

Just this week the Pam Golding Residential Property Index reported on the fact that the country’s resilient residential property market seems to be rebounding with a modest increase in house price inflation.

“In line with this, and coupled with innovative marketing drives, Pam Golding Property group sales for April 2016 are six percent up on April 2015, while our year to date (March to April 2016) sales turnover has increased by nine percent on the previous year. 

“During April areas of notable high activity for the group include Pretoria, Cape Town’s Southern Suburbs and Hermanus. This is against the backdrop of consistently strong performance in the Western Cape’s Cape Town Metropolitan Region, the Boland and Overberg, Gauteng, KwaZulu-Natal North Coast and Garden Route, with growing activity in areas of the Eastern Cape.

“Home buyers demonstrate an increasing desire to own their own homes while other trends reflect a continued high demand for rental accommodation, secure estate living, convenient urban apartments in commercial hubs and family homes with access to good schooling.

“Investors seek not only well-positioned income-generating properties ie buy to let accommodation, as well as second and third properties situated both nationally and abroad, thereby expanding their property portfolios and spreading their wealth across continents.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK