Record increase for repo rate
Category Property news
Home loan repayments increase as a result of the interest rate hike of 0.5%. The Monetary Policy Committee (MPC) has confirmed the increase of the repo rate by 50-basis points resulting in a rise to 4.75%, although many economists and property analysts have expected the upswing many remain startled by a radical growth of more than 0.25%. As a result, the prime lending rate now sits at 8.25%,
This is the biggest jump since 2016, global inflation has heavily influenced the Policy Committee's decision. Despite the increase, it remains relatively low when comparing it to pre-covid and first-time buyers' purchasing price has remained the same in comparison to last year.
'Property investments assuredly are still the best investments one can make, as the interest rates remain significantly low when compared to pre-pandemic rates. However, buyers need to purchase what they can afford and remain mindful as the interest rate will continue to climb' - Mike Greeff, CEO at Greeff Properties.
Overall, there is still a positive outlook as sales in luxury areas such as Constantia, Bishopscourt, and Newlands continue to hold up. Saving and investment products increase making it the ideal time to invest in your goals.
Author: Greeff Properties
