The Monetary Policy Committee announced today (25 May 2017) at its third meeting of the year that the interest rates would remain unchanged once again. This means that the repo rate will stay at 7%, and the prime lending rate remains stable at 10.5%. The rates have stayed at their current figures for well over a year now, having been raised in March last year. Reserve Bank Governor, Lesetja Kganyago, said earlier in the year that the key to keeping interest rates low is to bring inflation down. For the first time since August last year, inflation fell within the target rate of between 3% and 6% last month. The consumer price index (CPI) eased to 5.3% in April, down from the 6.1% in seen March.
04 April 2017: The rating agency, Standard and Poor has downgraded South Africa to sub-investment. It is expected that this will have a negative impact on the housing market and consumers as a whole. “We managed to avoid a downgrade last year but were not as lucky this time around. While Standard & Poor is only one of the rating agencies at this stage, it is likely that Moody’s and Fitch will follow suit and take the same view as S&P,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
Countrywide, as also seen in the Durbanville property market, there is evidence of a shift in the property market. Is the market slowing down or is it merely shifting into another phase? Property sales statistics suggest that the market is currently in a transition phase with demand for property seeing a decrease during the first half of this year. While the market has favoured sellers for some time, the dynamics are changing and scales seem to be slowly tipping in homebuyers’ favour.
Durbanville, in general, has always been an excellent location to purchase property, as can be seen from the positive historic growth in property prices, and the demand that there always exists for property in Durbanville. All property professionals and estate agents will always agree that location is of utmost importance when considering to purchase a property.
Purchasing a home for the first time can be a very emotionally driven experience with so many new and exciting things to consider, and sometimes complicated processes to negotiate. Often it can be easy for first-time buyers to get caught up on the smaller details, losing sight of the bigger picture and possibly making mistakes that they will pay for in the future. Here are a few tips to buyers to avoid some common mistakes when purchasing their first home:
Whether it is because you are retiring and buying a smaller home, moving in with roommates or have just purchased your first start-up home, it can be a big advantage to find ways to maximise the space you have and make the most of what is available, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
He provides a few tips for when one moves into a smaller space: Continue reading
With the shortage of property available at the moment, many homeowners may be more inclined to put their property on the market and take advantage of the current conditions. “Inventory shortages have pushed both demand and property prices up with several areas throughout the country experiencing multiple-offer situations,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. Continue reading
Purchasing a home is an amazing milestone that most people aspire to, however owning a property comes with certain additional responsibilities such as home maintenance. To ensure that the value of the home is protected and that the occupants of the home remain safe, home maintenance is an extremely important aspect that every homeowner will be required to do at some point. Continue reading
Downsizing from a large, freestanding property to a smaller, more manageable unit can provide several lifestyle benefits for those who are planning to downsize or even retire. Aside from the fact that a smaller home will be far easier to maintain, it also provides the owner with far more freedom to be able to lock-up-and-go any time of the year without worrying about maintenance or the upkeep of the property while they are away. Continue reading
Security is a major determining factor for most property buyers in South Africa, which is why homes within security estates or those that have state-of-the-art security systems generally sell for a higher premium. What about tenants?
All debt is the same right? Not exactly, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. “Very often consumers seem to put all debt in the same category, however while all debt is debt, it is not all equal. Identifying the difference between bad debt and what could be considered as potentially good debt will assist consumers to make more informed and better financial decisions moving forward,” Continue reading
In most industries it is currently the Generation X consumer, who are 31 to 45 years old, who have the buying power, but it is the younger generation or Millennials (consumers under the age of 30 years old) who will be the future buying power and backbone of all markets going forward.
While it is not possible to predict the future and what may or may not happen, it is always a good idea to have a contingency plan in place to ensure that you are prepared for the unexpected. This is according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who says that it is particularly important for homeowners to have a plan in place and funds put aside for a rainy day, considering the long term nature of homeownership.
More and more homebuyers in today’s property market are becoming increasingly interested in homes that offer green elements. This is according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa. He notes that the term ‘green’ home has become somewhat of a buzz word in the housing market as a growing number of homebuyers consider energy efficiency as a highly important factor when searching for the perfect property.