Good news for home owners, property investors and first-time buyers is that the South African Reserve Bank reduced the repo rate on 21 May by an additional 50 basis points. This saw the prime lending rate fall from 7.75% to 7.25% – the lowest it’s been in almost 50 years.
A singular opportunity
While lending rate cuts provide relief for existing homeowners, they also present a great opportunity for savvy property investors to expand their portfolio – and for first-time buyers to get onto the property ladder. If you’re a long-term renter who hasn’t been able to secure bank funding at a favourable lending rate, this latest interest rate drop might just tip the scales in favour of buying over renting.
Here’s something else to consider: If you decide to buy a property in a new residential scheme like One on Whiteley at Melrose Arch, you’ll save on transfer duty too. And since you’ll be purchasing a brand new home, you won’t need to pay for any repairs, cleaning or painting before you move in.
Home loan repayments
Banks and mortgage originators typically advise that your monthly home loan repayment should be around 30% of your gross monthly income, before tax and expenses. So what effect will the recent repo rate cut have on home loan repayments? Here’s a look at the saving over a 20-year bond term.
Time to invest in One on Whiteley?
South Africa has endured a weeks-long hard lockdown and we’re not out of the woods yet. Global stock markets remain extremely volatile but – as has happened in previous times of global turmoil – this often heralds greater confidence among investors and home buyers in bricks and mortar as a safe haven asset class delivering more stable returns.
If you’re looking to purchase your first home or de-risk your investment portfolio by investing in a precinct that has historically demonstrated excellent capital growth, there’s no better time to secure a luxury apartment at One on Whiteley.
For more information or to arrange a viewing, please contact Tersia Taljaard on 063 695 7571 or firstname.lastname@example.org.