The Repo Rate Cut and How It Affects You

The country breathed a sigh of relief when the recent announcement to reduce the repo rate by 25 basis points was made. After the downgrade to junk status there has been much uncertainty with regards to economic stability in South Africa, so to have a positive announcement was like a breath of fresh air.

With a repo rate of 6.75%, which translates into a home loan base rate of 10.25%, home owners and property investors alike are smiling, but this reprieve needs to be looked upon as an opportunity to relook at strategies going forward.

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While the property market has slowed down in many areas, the advice of a knowledgeable estate agent is more valuable than ever. With properties remaining on the market for longer than should be, it is extremely important to price your home correctly from the get-go. With more stock on the market, one needs to make sure that your property doesn’t sink to the bottom of the popularity pile as better opportunities become available.

It is also advisable for sellers to make sure that their properties are in the best possible condition. Fix that dripping tap, repair that cracked window and make your property as appealing as your budget will allow. To ensure a speedy sale, a sole mandate with a trusted estate agency is highly recommended. Agents give the bulk of their energy, fairly so, to sole mandate properties and focus their efforts on concluding a sale in the shortest possible time.

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Fortunately, when it comes to lending institutions, banks are still eager to lend. One may find that they are stricter and less forthcoming when it comes to granting 100% bonds, so it is all the more important for buyers to have their affairs in order and access to a deposit should it be required, but this should by no means put off first time buyers from trying to enter the market.

Should you need advice on the sale of your property, or are in the market to purchase, speak to one of our knowledgeable agents who will guide you through the process with professionalism and ease. Visit our website or call us on 021 526 3980.

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