Cash-strapped homeowners with mortgages, who are faced with inexorably rising consumer costs across the board, will be relieved at the Monetary Policy Committee’s decision today (21 July 2016) to keep the repo rate steady, says Dr Andrew Golding, CE of the Pam Golding Property group.
“Against the backdrop of a sharp spike in global political and economic uncertainty, including fallout from Brexit, comparably, South Africa’s outlook is encouraging. Just this week Bloomberg reported an inflow of investment of a record R85.7 billion in the country’s stocks and government bonds in June – a trend which has continued in July.”
Dr Golding says despite economic pressures, South Africa’s housing market continues to reflect an ongoing demand for homes to buy and rent, with stock shortages still evident in sought after hubs and growth nodes. He says there is no doubt that an increasing focus on smaller, more affordable and conveniently located residential accommodation will continue to fuel the demand for sectional title living, whether for investment, primary residential use or to rent.
“It also appears likely that new homeowners will remain a dominant force in the national housing market in general, and in the lower-price band below R1 million in particular, for the foreseeable future.
“Notably, Pam Golding Properties sales nationally have increased by 14 percent in June 2016 compared with June last year (2015), while our financial year-to-date sales for the March to June period are 12 percent up on the previous year.
“Globally, there is no sign that the push into property is slowing. While individuals may favour the stability and steady income streams offered by property investments, the world’s largest investment funds are increasing their investments in property in an attempt to improve the performance of their funds.
“Here in South Africa we find that not only do investors favour ‘real’ assets such as property during periods of economic uncertainty, there is also a desire to diversify into international markets. These include Mauritius, which enjoys a vibrant growing economy and low taxation rates, as well as no housing or property tax, no inheritance tax on properties purchased and no capital gains tax.”
For further information contact Pam Golding Properties on 021 7101700 or email [email protected].