PROPERTY FINANCE
“ Dr Golding says despite hike , interest rate remains below pre-Covid levels ”
“ The Reserve Bank would have had to grapple with an unusually complex set of circumstances when making its decision to hike the rate by 75bps , amidst resurgent inflationary pressures – with the impact of a series of hefty petrol price increases still to be felt , an ongoing war in Ukraine and the growing risks of a global recession .
they still remain below pre- Covid levels ( of 10 %) and as a consequence are still attractive for homebuyers .
More significantly , banks retain their appetite for extending mortgages to homebuyers , which is providing a solid underpinning for the local housing market , even as we move into an era of gradually rising interest rates and increasing pressure on household finances .”
However , it is relevant to bear in mind that although interest rates may be rising as the Bank normalises monetary policy after the remaining restrictive regulations associated with the pandemic were removed ,
Dr Andrew Golding Chief Executive Pam Golding Properties
180 AUGUST 2022 SA Real Estate Investor Magazine