INVESTING
The impact of increasing interest rates South Africa ' s distressed property market has become a topic of increasing concern due to ongoing economic challenges . Many homeowners find themselves unable to meet mortgage repayments , resulting in a surge of distressed properties .
Distressed properties are real estate assets owned by individuals facing financial hardship , often leading to foreclosure or insolvency . Various factors contribute to this situation , including job losses , economic downturns , and unexpected financial burdens . These distressed properties present an opportunity for buyers to acquire real estate at discounted prices , making them an attractive investment option .
However , the distressed property market is highly influenced by interest rates , which can either spur its growth or impede its progress . The impact of rising interest rates on the distressed property market is significant . When interest rates increase , the cost of borrowing for potential homebuyers rises as well , reducing their purchasing power .
Consequently , the demand for properties , including distressed ones , declines . This poses challenges for distressed property owners who struggle to find buyers , exacerbating their financial difficulties .
Furthermore , rising interest rates directly affect existing homeowners with adjustable-rate mortgages or variable interest rates . As interest rates climb , their monthly mortgage repayments also rise , placing many homeowners in financial strain . For those already experiencing financial distress , these additional costs can lead to a higher rate of default , further contributing to the number of distressed properties on the market .
The solution Real Estate Assist offers a unique approach to help distressed homeowners in South Africa . Our focus is on enabling homeowners to keep their properties while recovering from financial difficulties .
By aiding distressed owners in unlocking equity for immediate financial needs and maximising proceeds from property sales . Our commitment extends beyond short-term fixes , aiming to create
55 SEPT / OCT 2023 SA Real Estate Investor Magazine