The South African Reserve Bank’s first Monetary Policy Committee meeting of 2015 delivered the goods: interest rates will remain unchanged for the foreseeable future, even though the bank’s governor, Lesetja Kganyago, had previously said that the bank was in rates hiking cycle. Which means that now is probably a good time to prepare for when they do.
The reasons for maintaining the status quo - the repo rate at 5.75%, the prime rate at 9.25% - aren’t hard to fathom. As Adrian Goslett, CEO of RE/MAX of Southern Africa, pointed out: “falling fuel prices and the easing of food prices have served to improve the inflation outlook.
Property in South Africa is rising in value after a number of dormant years, despite a slow economic growth.
The house price index for medium-sized houses rose by 8.8% during 2014. However when adjusted for inflation, the average house price increased only 2.8%. Yet this was an improvement on the 3.2% y-o-y rise in house prices during the same period last year.
Avoid confusion during a property transaction with this guide on how to differentiate between movable and fixed property. According to Barry Fourie, National Training Manager for the Rawson Property Group, “Many disagreements between buyers and sellers of immovable property come about because of misunderstandings about what the seller may remove when vacating the property – and what has to remain there.”