Real Estate Investor Magazine South Africa March 2016 | Page 22

INVESTING

Should you be Investing in

PROPERTY IN 2016
Looking ahead to the coming year
BY ADRIAN GOSLETT

D

uring 2015 the South African residential
property market continued to see
improvement, with consumers still placing
a high value on homeownership. This is despite
the fact that consumers experienced increases in
electricity tariffs and interest rate hikes. While there
were many prospective buyers who struggled to meet
deposit requirements during 2015, those with access
to finance were ready to embark on their journey
towards homeownership and get into market as soon
as possible. That said, access to finance will continue
to be tough for consumers in 2016.
The effect of the last year’s interest rate hike and
the rising cost of living was felt by consumers during
the festive season and will continue to have an impact
on the property market this year. The Reserve Bank
has been warning consumers that we are currently
in a rising interest rate cycle, and will be for