POSITIVE NEWS FOR PROPERTY MARKET AMIDST WORST MARKET CONDITIONS
Category Finance
Johannesburg/Cape Town, South Africa - 14 April 2020; The Reserve Bank announced today that the repo rate would drop by another percent effective 15 April 2020. This news comes amidst a 'State of Natural Disaster'.
So how could this possibly be good news for an already struggling property market?
"This is the lowest the repo rate has been in nearly 50 years," says Bryan Biehler, Managing Director and co-owner of Huizemark. "The last time we experienced rates like this was in July of 1973. This is an incredible opportunity for those who have been considering purchasing a property - either as an investment or for those wanting to move up the property ladder."
Not only does this announcement open doors for those wanting to buy property as a long-term investment, but given the current property stock levels, plus the lowered borrowing rates announced during the SONA 2020 address provides a proverbial silver platter for others. "Those who were maybe looking at buying in specific neighbourhoods but couldn't afford the price tag; or those who were renting unable to afford to buy, may very well be able to consider putting in offers to purchase," says Bryan. "Given the bond rate reductions over the last two months, homeowners can save around R1 275.00 per month on a bond of R1 million*!"
Despite the current state of the local property market - and economy for that matter, Huizemark believe this announcement comes at a time where both could do with this type of stimulus, especially as the nation needs to plan for its recovery phase.
"The property market has not been in this position in nearly a decade. Those who can, BUY NOW," concludes Bryan.
To find out more about property to invest in your area, or if you are a first time buyer and need some advice, make sure you speak to a property expert. For more information on Huizemark's extensive agent network, visit the website, LinkedIn or Facebook pages.
*Minimum joint income amount to qualify for R1 million bond is R27 500.00
Author: Adrie Barnard
