“Given the current state of both the economy and the residential property market, the decision to keep interest rates where they are was to be expected.
While a cut would have been welcomed, what should be avoided is the rate coming down and then going back up again over a short period of time. A key driver for the residential market is consumer confidence. From that point of view, consistent interest rates probably outweigh the benefits of a short term cut.
With interest rates at historic lows and property prices in real terms more or less at 2007 levels, there are good reasons to buy a home, even without a rate cut. If rates do stay at these levels for 2012, it will continue to give homeowners who are in arrears further opportunity to catch up. This can only be positive for the market as a whole.”
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.
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