With national uncertainty at an all-time high, we know that whether or not to purchase a property right now can feel like a scary decision to have to make. As property experts, we’d like to offer you the insight and expertise that you might be looking for in these tough times, so that we can help you to make the right choice, and the right investment for your future.
Understanding The Recent Interest Rate Cut
In April of 2020, the South African Reserve Bank’s Monetary Policy Committee (MPC) reduced the country’s repo rate by 100 basis points down to 4.25%, resulting in the prime lending rate dropping by 1% to 7.75%.
For potential buyers and investors, this is great news. When the repo rate comes down, so do interest rates, and the possibility of getting a fair and affordable loan to buy or invest in property becomes higher.
Driven by this drop in the home loan rate, prospective buyers and property investors could now potentially find it easier to afford repayments on a new home loan, saving money on interest month-on-month. These savings, when accumulated over the course of your bond repayment period, can add up to a huge saving on the total interest that you will pay for your property. For example, for a R1 000 000 bond taken out over 20 years, you could save R150 629 in interest, or R451 887 in interest on a R3 000 000 bond. So, in a way, the country’s current financial state means that buying is now more affordable than it was just 6 months ago – in fact, many investors will try to pre-empt and wait for drops just like this to happen before they purchase a new property.
Bond Applications During Lockdown
Backed by information supplied by the BetterBond team, we can confirm thatThe South African Deeds Offices, who are responsible for the registration, management, and maintenance of property in South Africa,are open as of 1 May 2020, meaning that the lockdown shouldn’t stop you in taking the next step towards purchasing or investing in a new home.
Though they may be operating with skeleton staff during this time, all major banks are still open and are attending to bond applications, so you can still apply for a bond,should you find the home you’ve been searching for while the lockdown is still in place. They’ve asked for patience as their service levels and turnaround times will be compromised under the current circumstances, but the lockdown doesn’t mean that you should put off filing your application to finally start living the life you’ve dreamed of – in the Reeflords home you’ve dreamed of.
Reeflords Continues To Help You To Start Living Your Way
While we practice social distancing as a nation, the Reeflords team are still working from home to help you to unlockthe home of your dreams. We encourage all of our current and potential homeowners to stay home and stay safe, as we are doing, and know that we are still online and available to answer your questions. For now, please note that you can take a free 3D viewing with us by visiting one of our properties on our website.https://reeflords.co.za/ – Our Properties Virtual Tour