select
|

Comment on interest rate announcement

While it was announced yesterday that the prime interest would remain at 8.5% for the remainder of 2013, property owners should make the most of the current rate before possible increases are implemented during the course of next year, says Adrian Goslett, CEO of RE/MAX of Southern Africa, following the announcement at the last Monetary Policy Committee meeting of 2013.

“It is quite likely that we will start seeing the interest rate increase during 2014, which will put slightly more pressure on those with already high-debt-to-income ratios. Consumers have enjoyed a remarkably low interest rate for the past few years with the prime interest rate dropping by a staggering 5.5% since the property boom, which has opened up several opportunities to buyers who were previously unable to afford property. Aspiring homeowners that have waited it out before taking the opportunities presented in the current market may soon find themselves missing out if they do not act now,” says Goslett.

He warns that favourable conditions for buyers will not last forever, as demand and interest rate increase. “We have already seen significant changes in the market with higher numbers in sales transactions over the past two years and things certainly looking up for sellers,” he says.
 
He notes that the growing demand for property has also pushed property prices up, with some regions seeing prices far beyond what was seen during the boom. In terms of affordability, buyers could soon find themselves in a similar situation as they did during the boom period.
 
“While there are buyers with the means to be able to purchase property with cash, the large majority of the South African population is dependent on obtaining finance for buying a home. With this in mind, it is expected that the predicted rate increases during 2014 will impact on both the affordability levels of buyers wanting to enter the market as well as existing homeowners with bonded properties,” says Goslett. “When it comes to buying property, timing is essential.  If buyers hesitate too long before jumping into the market, they will be purchasing property at a higher premium in a market with diminished property stocks,” he concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 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.
        
    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