2012 South African Interest Rates Advanced Comment - Jawitz Properties

Herschel Jawitz CE of Jawitz Properties believes that even without a rate cut by the Reserve Bank this week, this is a still a good time to buy a property in South Africa.

A rate cut would certainly give consumers and buyers a short term impetus to get into the market but what is not needed is a short term cut in rates followed by an increase in rates later in the year. Stability and consumer confidence play a critical part in the residential market. When these factors aren’t there, long term buying decisions go out the window. If rates start to bounce around, people nervous.

With property values in real terms as they were in 2007, and rates still at historic lows, the market is offering value but not bargains. Provided a long term view is taken, now is a good time to buy. The breakeven period has probably increased to five years from the previous three year term given the slow rate at which prices are increasing. Homes are taking time to sell and sellers are still slow to adjust to the market - but in the metro areas there is activity.

Jawitz says that while a rate cut would be welcomed, it would very little impact on the rate at which prices are increasing in 2012.

Paula Neild is the Marketing Manager for Jawitz Properties South Africa. Contact paula@jawitz.co.za or call 011-880-3550. Jawitz Properties specialise in South African property for sale and property rentals throughout South Africa. Visit http://www.jawitz.co.za for more information.