Unchanged repo rate good news for property market
The South African Reserve Bank Governor Lesetja Kganyago has revealed that the repo rate will remain unchanged at 5.75 per cent.
“We welcome the rate remaining unchanged at present, particularly in light of the impending rises in electricity and fuel that are expected within the next few months and will certainly put pressure on households”, says Bruce Swain, MD of Leapfrog Property Group.
While there hasn’t been a rate hike in this cycle, Kganyago has pointed out that the rate will be subject to continuous review and may well go up at a later stage.
In the meantime Swain encourages homeowners to make the most of the current rate by putting any surplus funds into their bonds, as this will reduce the repayment period and dramatically cut overall interest.
“The property market remains positive with well priced properties being sold within days of coming onto the market and we see this trend being boosted by the unchanged repo rate.
“We’d certainly advise buyers to put in an offer on their dream home as long as they’ve done their homework in terms of affordability”.
