Homebuyers shouldn’t let the Reserve Bank’s latest decision to keep interest rates on hold discourage them from looking for the right property.
“The decision, which keeps the home loan base rate at 10.5%, comes as residential demand is gaining momentum and prices are edging higher,” says Stephen Whitcombe, MD of Johannesburg-based FIRZT Realty.
“While some buyers may hesitate in the face of higher borrowing costs, waiting could end up costing far more.”
According to StatsSA’s Residential Property Price Indicator, annual house-price inflation reached 5.9% in April, with freehold homes rising by 6.4% and sectional title units by 4.8%.
“In this context, holding off in the hope of future rate cuts may only mean paying more for the same home - and needing a bigger bond,” Whitcombe explains. “Johannesburg remains the country’s financial hub, and demand here is strong, stock is moving, and prices are steadily increasing.”
He advises buyers to focus on fundamentals rather than trying to time the market. “If you find a property that suits your budget and lifestyle, act decisively. You can always accelerate repayments when rates drop, but you can’t go back and buy at yesterday’s prices.”
“Information for this article was sourced from Property24.”
