Real Estate Investor Magazine South Africa June 2014 | Page 25

REI Residential
Across the board from the top four largest real
estate agencies, the sentiment is the same: the latest
repo rate information from the Monetary Policy
Committee is to remain the same (5.5%) and is a
welcome reprieve. Not only will this further boost
buyer confidence as it indicates stability in the market
- something that is much needed at present, it proves
that the market is resilient. Not to say that a rate hike
further into 2014 is unavoidable, but for now at least
it’s good news for South African homeowners.
Another rate hike however will place pressure on
the pockets of all South Africans but it is advised that
debt should continue to focus to pay off debt and save
as much as possible for the inevitable rate hike.

Valuable Input

Mike Greeff
CEO
Greeff Properties

Gary Palmer
CEO
Paragon Lending Solutions

Colin Habberton
CEO
PayProp

A very good reason to buy
property right now is that
would-be purchasers are
more confident about making
informed decisions based on
the economic lessons of the
past six years, which strongly
indicate that long-term
investments are the direction
to take. Buyers are definitely
more at peace with the concept
of long-term investments, and
this makes it easier to take
the plunge and buy the family
home or get into the market
for the first time with the
intention of sitting tight and
paying off a bond.

Though the interest rate hike
has left pleasing results across
the board, it doesn’t harm to
keep in mind that in the future
that an increase in interest
rates can have a variety of
business consequences which
may affect operations.
It is important that businesses
and consumers can do is
prepare for rate hikes in
advance, to ensure that they
don’t encounter any financial
setbacks and budgetary
challenges.

DepositGuarantee, a
relatively new offering in
the rental market, offers far
more affordable payments,
on a monthly basis, which
provides trusted protection to
landlords. DepositGuarantee
is innovative insurance for
landlords at a cost that tenants
can afford. Instead of an
upfront deposit, tenants pay
the landlord’s premiums under
the DepositGuarantee, a much
more affordable proposition.
Tenants who owe nothing
when the lease expires receive a
no-claim cash bonus, as well as
a Good Tenant certificate.

www.reimag.co.za

June 2014 SA Real Estate Investor

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