There are, currently, many positive signs for the future of the property market. Tony Clark, MD of Rawson Properties, believes that interest rates in South Africa are set to be cut even further. Clark adds that an interest rate cut of 0.5% will benefit the property market, perhaps far more than most people realise. Currently, many households have more disposable income now than they have had in years. And buying confidence is starting to return. Added to that is the fact that interest rates are at record lows, and house prices are now more affordable. The prime interest rate is at 9.0%, and another cut could bring the rate down to 8.5%. The banks are also granting more 100%
The South African Reserve Bank cut interest rates by 0.5% last month (sept) to bring the prime rate down to 9.5%. The cut was welcomed by many consumers and homeowners. A drop of 0.5% could translate to a huge saving over the full term of your bond. While, in the short term, it means more consumers are now better able to manage their monthly debt commitments. Here's how the most recent rate cut will affect your pocket...
The FNB Residential Property Barometer is a quarterly report produced by FNB Home Loans, that draws conclusions about the future of the property market from a survey of various estate agency groups in South Africa.
Now is the time to get into the property market, or to invest further into residential property if you already own a home. Besides being a basic need, property values are growing fast and the pace is expected to increase even further!