FINANCE
As affordability improves, more renters may be tempted to consider buying rather than renting, as monthly repayments become more manageable,“ says Kondowe. For existing homeowners, refinancing options might also become more attractive, allowing them to renegotiate terms for better rates.
For investors, the rate cut could provide an opportunity to expand their portfolios. Lower borrowing costs can improve cash flow and yield on investments, particularly in residential properties.
Advice for Sellers in the Current Market Sellers should be mindful of market conditions. Kondowe advises that overpricing is a common mistake.“ A property priced too high often lingers on the market, deterring potential buyers,” he warns. Sellers should work with experienced agents who can help set competitive, realistic prices. Accurate market valuations and a strategic approach to timing are key.
What’ s Next for the Property Market? Looking ahead, further interest rate cuts are expected in 2025, and this could continue to positively impact the property market.
“ The outlook for 2025 is promising, with inflation likely to remain within the SARB’ s target range, potentially leading to further rate cuts,” says Jors van Niekerk, CEO of MortgageMax.
In the meantime, Dyer advises homeowners to focus on using any additional savings from the rate cut to pay off their home loans faster.“ This strategy will help you save thousands of rands in interest and potentially shorten your loan term,” he explains.
Final Thoughts The recent interest rate cut, though modest, offers a golden opportunity for homeowners to take control of their financial future. By adjusting repayment strategies, using windfalls wisely, and focusing on long-term financial stability, property owners can benefit significantly.
As Van Niekerk concludes,“ While this rate cut is a welcome relief, a cautious approach to spending during the festive season will set South Africans up for financial success as they head into 2025.”
66 REI MAGAZINE DECEMBER 2024 / JANUARY 2025