We all know and dread the effects of inflation on every part of our lives and it's something we have little to no control over. At the end of the days, its factors such as our infamous electricity crisis and loadshedding, fuel and oil prices and the strength of the South African Rand.
As overwhelming as that is, there is hope since the overall trend has decreased from the 2021/2022 and continues to remain stable in 2023. However, this still affects buyer ability to purchase property and houses. It has been noted though that there is still a demand in the property market and aspiring homeowners are still willing to invest in homes which means the market will remain stable as well. With a consistent demand for home loans in 2022, it is seen that prospective homebuyers are willing to buy despite the increased interest rate. It is important to note though that while the interest rate has been high, it is still under the average of the last 25 years which gives us hope for the coming cycles.
In this economic climate and its challenges, we must be sure to buy within our means. Many homeowner make the mistake of overspending and with the fluctuating interest rates, the smallest increase could spell trouble for their bank accounts. With a single percentage increase, the bond repayment costs can increase significantly and therefore increase the cost of living.
If invested in well, property is a valuable asset to have in the long term. There is a lot of potential for future wealth and financial security with the right guidance and decision-making.
