Repo rate rise is unlikely to make massive waves in the property market
Category Property news
“The rise in the repo rate by 25 basis points is regrettable, but not entirely unexpected,” says Mike Greeff, CEO of Greeff Properties an exclusive affiliate of Christie’s International Real Estate. “Certainly, the rise in interest rates will stretch household budgets and affect those already struggling to pay off home loans”, says Greeff. Yet Greeff believes that with the stock still low, there is still enough demand to keep the property market from ticking over.
Record selling prices around the Peninsula
"While we are seeing the start of a reduction in the growth in selling prices, numerous areas around the Peninsula are seeing record selling prices, with sellers still being well placed to market their homes in the current environment,” says Greeff. He predicts that the demand for rentals will increase, something that will make purchasing property as an investor, an attractive option.
Advice for paying off your home loan during this time
“Anyone paying off a home loan should attempt to increase the minimum repayment, even by a few hundred a month. This decreases the interest, reduces the repayment period, and acts as a sophisticated saving mechanism for creating a safety net of cash in case of future emergencies. Also, this finance will be available to you at a cheaper rate than a new loan would be”, advises Greeff.
Author: Greeff Properties
