After a year of tightening belts and looking for ways to reduce household expenses, homeowners are likely to be awaiting the January interest rate announcement with bated breath. Thankfully, another interest-rate hike is unlikely to occur at the next announcement, which is set for today (25 January).<\/p>\n\n\n\n
Adrian Goslett, Regional Director and CEO of RE\/MAX of Southern Africa, says that an interest rate hike would mean trouble for the property market as a whole. <\/p>\n\n\n\n
\u201cMost transactions rely on home finance. When interest rates are as high as they are, fewer and fewer individuals are able to afford the higher debt repayments. We have already noticed this last year, with the industry languishing at a 25-30% drop in sales.\u201d<\/p>\n\n\n\n
On the upside, most economists seem to predict that interest rates will hold steady at the January meeting and might even drop within the first quarter of the year. <\/p>\n\n\n\n
\u201cThe best thing that could happen for the property market is for interest rates to start coming down again,\u201d Goslett said. \u201cThis will relieve the financial pressure that most homeowners are experiencing and will allow aspiring buyers greater opportunity to afford to purchase property.\u201d<\/p>\n\n\n\n
Until then Goslett\u2019s advice to homeowners is to try and keep their debt levels as low as possible, especially the debts with higher interest rates, such as personal loans or car loans. \u201cFunnel whatever spare cash you have towards paying off those debts first and avoid taking on any new debts if possible,\u201d he advises. <\/p>\n\n\n\n
Those who sell within the current market need to keep in mind that qualified buyers are harder to come by within these economic circumstances. <\/p>\n\n\n\n
That said, Goslett also notes that a well-priced home marketed by a good real estate professional should have no problem selling, but buyers will need to trust the advice of their chosen real-estate professional if they are to conclude a timeous sale within the current market.<\/p>\n\n\n\n
His advice to real-estate professionals is to keep on pushing while interest rates remain high. \u201cTough market conditions make even tougher real estate agents. If you can survive as a real-estate professional and make sales occur in times such as these, then you can rest assured you have what it takes to make it in this industry.\u201d<\/p>\n\n\n\n
While it is impossible to predict with any certainty what lies ahead, Goslett remained hopeful that interest rates would become more favourable for the real-estate market over the course of the year. <\/p>\n\n\n\n
\u201cI am hopeful that we will enter a period of slightly more stability this year, and that more opportunities will come about for buyers and sellers alike,\u201d he concluded. <\/p>\n","protected":false},"excerpt":{"rendered":"
After a year of tightening belts and looking for ways to reduce household expenses, homeowners are likely to be awaiting the January interest rate announcement with bated breath. Thankfully, another interest-rate hike is unlikely to occur at the 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