Property demand remains high
Category Property news
The repo rate has increased by 25 basis points and the prime lending to 7.25%. The South African Reserve Bank has taken into account the current local and global economic climate when making its decision.
For the first time in years, there is a hike in the repo rate. Following the recent local government elections, the return of load shedding, and the mid-term budget policy statement, there was a lot for the Monetary Policy Committee (MPC) to consider. The increasing inflation rate has been one of the determining factors for the increase, as the MPC can only hold off on the inevitable for so long.
"The increase won't affect the high demand for real estate, as more people are still choosing to buy." - Mike Greeff, CEO.
While homeowners with a bond will be owing more on their loan, the upside for investors is a possible increase in rental demand. After the Covid-19 pandemic caused a crash in the rental market, particularly in the Western Cape, a repo rate may be a sigh of relief for investors with vacant properties.
The repo rate has not been raised significantly, thus making it a good time to invest in property as the repo rate is only set to continue to raise which would make banks tighten their lending criteria.
The repo rate has increased by 25 basis points and the prime lending to 7.25%. The South African Reserve Bank has taken into account the current local and global economic climate when making its decision.
For the first time in years, there is a hike in the repo rate. Following the recent local government elections, the return of load shedding, and the mid-term budget policy statement, there was a lot for the Monetary Policy Committee (MPC) to consider. The increasing inflation rate has been one of the determining factors for the increase, as the MPC can only hold off on the inevitable for so long.
"The increase won't affect the high demand for real estate, as more people are still choosing to buy." - Mike Greeff, CEO.
While homeowners with a bond will be owing more on their loan, the upside for investors is a possible increase in rental demand. After the Covid-19 pandemic caused a crash in the rental market, particularly in the Western Cape, a repo rate may be a sigh of relief for investors with vacant properties.
The repo rate has not been raised significantly, thus making it a good time to invest in property as the repo rate is only set to continue to raise which would make banks tighten their lending criteria.
Sources: BusinessTech, Trading Economics, MoneyWeb
Author: Greeff Properties
