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