15 Apr 20

Property buying power rises as Repo rate takes further cut

South Africa is only at the start of the COVID-19 pandemic, but drastic measures are being put in place to lower the impact on its citizens and economy. The South African Reserve Bank announced a further 1% cut to the repo rate; making the current interest rate, 4.25%; the lowest it has been in the last 25 years. If you were not sure if you should start investing in South African property, the current market could not be a more ideal time for first-time buyers and investors.

“The value of property, especially those situated in secure and strategically positioned estates, has not waivered. We believe that property, situated in prime locations, will remain a secure investment and undoubtedly stand the test of the current times. Having the interest rate this low will allow first-time buyers to really take that leap of faith, while investors can easily snap up incredible opportunities. Individuals who have a bond for R1 million will now pay approximately R1255 less per month than they did 4 weeks ago. This is the time to act and get the ball in motion,” shares Stefan Botha, Rainmaker Marketing Director.

While the interest rates have lowered, it is also important to remember the key principles in buying property. Keep in mind the fundamentals of location, price-point and the security and lifestyle it offers you. It is vital to take advantage of this situation as best you can, as soon as the economy starts to recover post the COVID-19 pandemic, we can expect to see the interest rate rise.

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