Repo rate cut a boost to residential property

Today’s decision by the Monetary Policy Committee to cut the repo rate has been welcomed by Greeff Christies International Real Estate.

“Given the cut in the repo rate by the South African Reserve Bank, the property market can expect a very healthy surge,” says the company’s CEO Mike Greeff.

“Any type of easing in interest rates will encourage individuals to get involved in the property sector, as well as bring relief for current bondholders in that it will have two possible effects: it could either create additional disposable income in their budgets, or it will allow for a higher than required bond repayment which can, in essence, take years off your bond.”

“Given the cut in the repo rate by the South African Reserve Bank, the property market can expect a very healthy surge.” – Mike Greeff, Greeff Christie’s International Real Estate.

Greeff says a lower interest rate is also a positive for the banking sector, as it will create an influx of customers applying for home loans. 

“These clients are willing to enter into long-term commitments with banks and lending organisations, which would guarantee income stability for the next two decades at least.”

He says the company welcomed the rate cut as it is sure to create increased demand for property, stimulate the economy and will allow more buyers to consider property as an investment as opposed to just residential purposes.

www.greeff.co.za/christies-international