Unchanged interest rate can still benefit prospective homeowners - Seeff
South African Reserve Bank Governor Lesetja Kganyago announced on Thursday that the repo rate would remain unchanged at 3.5%.
JOHANNESBURG - Despite the South African Reserve Bank deciding not to decrease the repo rate further, the property market is still being seen as more accessible to South Africans, especially for those who haven't been able to buy a house in the past.
Reserve Bank Governor Lesetja Kganyago announced on Thursday that the repo rate would remain unchanged at 3.5%.
With many South Africans left in the past with no choice but to rent, the 300-basis points reduction has given prospective homeowners a chance.
Samuel Seeff of Seeff Properties said that it was expected that the rate would remain unchanged at this time but many could still benefit.
"And it's benefited particularly in the R3 million bracket and below and also those coming into the market for the first time."
He said that more and more people were buying homes.
"We would expect to see and we have been seeing a number of people who would have rented in the past coming in and buying now and taking advantage."
Seeff said that homeowners were getting better interest rates when buying and the reserve bank had room to cut the repo rate again."