AT HOME ON THE WEST COAST:
Category News
AT HOME ON THE WEST COAST:
Favourable Market Conditions Make Now an Excellent Time to Invest in the West Coast Holiday Home of your Dreams!
The property market continues to experience a boom in home buying, as low interest rates continue to foster favourable market conditions for savvy buyers who have been quick to take advantage of this incredible window of opportunity. These conditions make now an ideal time to invest in the holiday home of your dreams.
Earlier this month, the Monetary Policy Committee and the South African Reserve Bank decided tomaintain the current repo rate of 3.5%, and the prime lending rate at 7%, compared to 10% last year December. It is widely expected to remain steady as we head into 2021.
To put those figures into context, consider this beautiful 5-bedroom house for sale in Yzerfontein for R3,750,000. At the current lending rate, your monthly bond repayments over a period of 20 years would be approximately R29,074, compared to R36,189 a year ago.
Over the duration of that 20 year period, if you had bought last year December your bond would end up costing you roughly R8,685,194, but now will cost you R6,977,690 - that's a massive saving of R1,707,504.
In addition to the interest rate, the consistent uptick in property sales has also been fuelled by the fact that home loans are more easily attainable, with lower qualifying thresholds. This increased access to funding is driving a surge of first-time property buyers who are now finding it cheaper to buy a property and payoff their bond rather than paying their monthly rent.
Added to this, the current inflation rate is the lowest it has been since 2004/5, which serves to bolster consumer spending power.
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Author: Home & Hectare
