Interesting times ahead with Interest Rates Raising in South Africa.
Category Just Imagine Properties Team
The interest rate in South Africa has been on the rise in recent months, and this has had a significant impact on the housing market. According to Theo Erasmus of Just Imagine Properties, "When interest rates go up, it makes it more expensive for people to borrow money, which in turn makes it harder for them to buy houses."
The increased interest rate has led to an increase in the cost of home loans, making it more difficult for many South Africans to afford to buy a house. This has led to a slowdown in the housing market, with fewer people looking to buy and more people opting to rent instead.
Erasmus also stated "The interest rate is one of the most important factors that determine the affordability of a home loan. When rates go up, it affects the entire market, from buyers looking to purchase their first home to existing homeowners looking to refinance."
The increased interest rate has also affected the property market in another way, as it has caused property prices to stabilize after a good run since 2018. As Erasmus said "When the cost of borrowing money goes up, it makes it less attractive for investors to buy property, which in turn puts downward pressure on prices."
Despite these challenges, Erasmus remains optimistic about the future of the South African housing market.
"While the current interest rate environment may make it more difficult for some people to buy a house, it's important to remember that this is a cyclical trend. Eventually, rates will go back down, and the market will pick up again." It's also a great time to be on the lookout for investment properties. Bargains and fixer uppers tend to be more readily available in a buyers market.
He also added "Interest rates may rise and fall, but the desire for a place to call home remains constant."
Author: Just Imagine Properties
