Latest news with #REMAXSouthernAfrica
IOL News
8 hours ago
- Business
- IOL News
Consumers and homeowners get boost after MPC cuts rates
The rate cut will make home loans more affordable and property buyers will find it slightly easier to qualify. Image: File The Monetary Policy Committee (MPC) announced on Thursday that interest rates will drop by 0.25%, bringing the repo rate to 7% and the prime lending rate to 10.5%, which property companies say is a welcome boost for consumers and homeownership. Samuel Seeff, the chairman of the Seeff Property Group, said the rate cut is welcome news for the economy and property market. REMAX Southern Africa said it views the announcement by the MPC as a welcome step towards reinvigorating economic activity and restoring consumer confidence. This is the third interest rate cut this year (fifth since September last year). Seeff says it is the correct decision given that inflation (at 3% for May) is below the Bank's target range, and the currency has been stable, trading at times below R18/USD. Regional Director and CEO of REMAX Southern Africa, Adrian Goslett, said 'This cut is likely to serve as a much-needed catalyst for transaction volumes, particularly in the affordable and mid-market sectors. The market is still price-sensitive, but this rate cut could re-energize interest in property acquisitions." 'While this 0.25% cut may seem modest, it does mark a positive step toward restoring the rate environment we saw before the pandemic. Back in January 2020, the repo rate stood at around 6.5%, and although we're still well above that, today's decision brings us incrementally closer. It's an encouraging signal that the Reserve Bank may be pivoting towards a more growth-friendly stance, which could help unlock pent-up demand in the housing market,' said Goslett. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Despite broader economic challenges, the housing market has retained a degree of buoyancy. House prices have strengthened and sales volumes continue to surpass expectations, especially within the REMAX SA network. REMAX Southern Africa reports that its registered sales figures have increased by 12.5% compared to last year (as at end June), and their total units sold increased by 6.5%. 'I remain optimistic about how this latest interest rate cut will impact the local housing market and expect to see activity strengthen further in the months to follow,' Goslett said. However, while this cut brings welcome relief for consumers by reducing borrowing costs and putting more money back into their pockets to spend in the economy, Seeff said it is still not enough. More needs to be done to really give the economy the rocket boost that it needs. Nonetheless, the rate cut will make home loans more affordable and property buyers will find it slightly easier to qualify, thus opening more doors to homeownership. The total rate cuts since September means that the interest rate will now be 1.25% lower compared to last year. The repayment on a bond of R1 million (over 20-years) will therefore now be reduced by around R853 per month. Higher demand and improved house price appreciation at around 3.7% nationally (topping inflation for the first time in two years) also provides incentive for sellers, especially since many areas are in need of more property listings. While the rate cuts have been well received, Seeff said the economy and property market have not yet felt any notable impact from the rate cuts. The first quarter GDP growth was disappointing. After an initial surge, the overall property transaction volumes for the first half of this year are about 16% below the same time last year. Seeff said, "Bolder rate cuts are needed. Since the interest rate (even after the latest cut) is still higher compared to January 2020 before the onset of the Covid-pandemic, we continue to urge the Bank to step up with more cuts now while inflation is contained, and the currency stable." As a result of the 25 basis points rate cut, mortgage repayments will reduce by: R750 000 bond – from R7 614 to R7 488 – saving R126 (Based on a 20-year repayment period at the prime rate) R900 000 bond – from R9 137 to R8 985 – saving R152 R1 000 000 bond – from R10 152 to R9 984 – saving R168 R1 500 000 bond – from R15 228 to R14 976 – saving R252 R2 000 000 bond – from R20 305 to R19 968 – saving R337 R2 500 000 bond – from R25 381 to R24 960 – saving R421 R3 000 000 bond – from R30 457 to R29 951 – saving R506 R5 000 000 bond – from R50 761 to R49 919 – saving R842 BUSINESS REPORT
The Citizen
5 days ago
- Business
- The Citizen
Renovate vs relocate: What's best for your home's value?
Renovate vs relocate: What's best for your home's value? For South African homeowners caught between staying put or starting fresh, the decision to renovate or relocate is more than just personal preference; it's a question of smart investment. According to property experts at REMAX Southern Africa, the answer lies in understanding which option offers a better return on investment (ROI) and holds the most potential for future house price appreciation. 'The choice between renovating and relocating hinges on a homeowner's financial goals, the state of their current property, and market conditions in both the current and potential new neighbourhoods,' says Adrian Goslett, regional director and CEO of RE/MAX of Southern Africa. For example, he explains that in an area with slow house price appreciation, selling and upgrading could yield a better price than investing in a stagnant area. In high-demand suburbs with little stock, he recommends that homeowners upgrade their current home to ride the property value wave. Another aspect to consider when weighing up whether to renovate or relocate is the transactional costs of buying a home, such as transfer duties, legal fees, and commissions. These can typically total around 7 to 10% of the purchase price. 'These costs can offset short-term gains unless the buyer is upgrading to a home with greater long-term value potential,' Goslett cautions. Home renovations can be a strategic move, especially in an area with stable or rising property values. Updates to kitchens, bathrooms, and open-plan living spaces can significantly increase the appeal and value of a home. However, Goslett warns against overcapitalising – spending more than the area's resale values can support. Spending more than the neighbourhood can support in resale value may mean losses down the line. 'Homeowners should also consider the cost of temporary accommodation during extensive renovations and the unpredictability of construction timelines, which may erode ROI if not carefully managed,' he notes. Beyond financial returns, homeowners must consider how well their current property supports their day-to-day life, and whether they can afford to buy a new home if they wish to remain in the same suburb (perhaps because of schooling, work commutes, or family). When a home's footprint cannot accommodate the household's evolving needs, Goslett says relocating may be the more practical and cost-effective solution. Similarly, if homeowners must remain in their current location, then renovating may be the best solution. ALSO CHECK: Rotary Clubs unite for high-energy wheelchair relay
The Citizen
26-06-2025
- Business
- The Citizen
3 property investment strategies to build wealth in uncertain times
In today's unpredictable economic landscape, property investment remains one of the most reliable methods for building and preserving wealth. Whether it's VAT hike reversals, interest rate changes, or global political tensions, savvy investors know how to navigate volatility to their advantage. The secret lies in adopting the right strategies tailored to uncertain times. 'The current climate of uncertainty is being felt universally, with geopolitical tensions contributing to economic volatility not just here in South Africa, but across the globe. While challenges exist, we have always seen that the South African property market shows remarkable resilience when approached with the right strategy,' says Adrian Goslett, regional director and CEO of REMAX Southern Africa. Focus on Cash Flow–Positive Properties 'In uncertain times, liquidity and stability become paramount. Cash flow–positive properties (those that generate more rental income than their monthly expenses) can offer a steady income stream, acting as a buffer against broader financial shocks,' says Goslett. For those who would like to put this advice into practice: Avoid maxing out your credit. If interest rates increase, this could put you under strain. Before making a purchase, analyse all costs, including mortgage repayments, maintenance, property management, and vacancy rates. Use conservative estimates when calculating expected rental income to ensure the property remains cash flow positive even in downturns. Diversify Your Portfolio Geographically 'Market conditions vary from region to region. What might be a buyer's market in one city could be a seller's market in another. Geographic diversification helps spread risk and reduces exposure to localised downturns,' says Goslett. For those who would like to put this advice into practice: Don't overlook secondary or emerging markets just outside city centres. They often offer better value and growth potential than saturated urban centres. Monitor regional economic drivers such as job growth, infrastructure development, and population trends. Adopt a Long-Term Mindset 'Property values generally appreciate over time despite short-term fluctuations. A buy-and-hold strategy enables you to ride out volatility while building equity,' says Goslett. For those who would like to put this advice into practice: Invest in low-maintenance properties to reduce long-term upkeep costs. Choose locations with strong fundamentals like employment opportunities, school zones, and transport. 'Uncertain times often bring the best opportunities for those who are well-prepared. By focusing on smart, resilient property investment strategies, you can not only weather the storm but also position yourself to thrive when stability returns. Remember, the key is not to fear uncertainty but to understand how to leverage it to your financial advantage,' says Goslett. Issued by: Kayla Ferguson
The Citizen
06-06-2025
- Business
- The Citizen
Why winter is a hot time to buy property
Contrary to popular belief, the Winter months are not a dead zone in the South African real estate market. In fact, data compiled by REMAX of Southern Africa dispels the myth that property sales go quiet during the colder season. According to internal national sales figures for REMAX Southern Africa, June, July, and August consistently reflect slightly higher transaction volumes throughout the year. This surprising trend illustrates that Winter offers fertile ground for property transactions, challenging the notion that warmer months are inherently better for buying and selling real estate. 'While our stats pick up from June, our registered sales figures tend to peak in September and November and then drop off in December and January,' says Adrian Goslett, regional director and CEO of REMAX Southern Africa. But these peaks don't necessarily indicate when buyers are most active – they reflect when sales are officially registered. In South Africa, it typically takes up to three months for a property sale to move from the point of offer to full registration in the Deeds Office. This means that homes registered in September and November were often secured by buyers during the Winter months of June, July, and August. 'When you account for the time lag between sale and registration, it becomes clear that Winter is when many buyers are actively making offers,' Goslett explains. While sales figures appear to dip in December and January, this is also easily explained by external factors. These months coincide with South Africa's peak holiday season, during which many buyers and sellers are on vacation, and the Deeds Office closes for a period in December, creating natural delays in the registration process. 'It's not necessarily that the market goes quiet—it's that administrative processes slow down over this period,' says Goslett. 'Buyers and sellers still transact, but you'll only see those deals finalised and registered in the months that follow.' According to Goslett, understanding when the property market is most active is essential because it allows buyers, sellers, and real estate professionals to make smarter, more strategic decisions. 'For buyers, knowing the peak periods helps them avoid fierce competition and potentially negotiate better deals during quieter months. Sellers, on the other hand, can time their listings to align with periods of heightened buyer activity,' he notes. With the winter months fast approaching, South African sellers are encouraged to shed the outdated view of seasonal lulls. Winter might feel cold; but in property, it's heating up. 'Ultimately, seasonal trends can influence pricing, speed of sale, and the overall success of a property transaction. But each suburb can have its own unique trends. Speak to your local real estate professional for some insights into what's happening in your specific area and how to best position yourself in the current market conditions,' Goslett concludes. Issued by: Kayla Ferguson
