Reaction on repo rate increase from Yael Geffen - Everything Property

Reaction on repo rate increase from Yael Geffen

repo rate

Lew Geffen Sotheby’s International Realty CEO Yael Geffen says the repo rate increase of 50 basis points is going to affect all South Africans.

“The hike wasn’t unexpected given the pressure on the economy, but it is yet another blow for consumers already battling record high fuel prices and food costs going through the roof since the Ukraine conflict began.

“South Africans are being squeezed from all sides and there just isn’t that much give in the economy.”

Geffen says with the increase now setting the prime repo rate at 8.25%, on a bond of R2 million (at prime) monthly home repayments will go up by more than R600.

“The housing market is still extremely buoyant, but buyers need to budget carefully. There will be at least one more rates hike this year, so purchases must be made with that in mind.

“Property is unequivocally one of the best long-term investments right now in a very uncertain world, but buy wisely and buy what you can afford. That’s how to maximise your investment in the long run.”

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