With the latest increase in the repo rate, home owners are expected to dig deeper into their pockets to pay back their bonds.
The chairperson of the Seeff Property Group, Samuel Seeff, said that homeowners were likely to feel the pinch from the latest increase in the repo rate.
This comes after the reserve bank hiked the repo rate by 25 basis points following the latest meeting by its monetary policy committee.
The five-member committee factored in high inflation, power cuts and poor economic growth in its decision, which will see the repo rate increase to 7.25%.
With the latest increase in the repo rate, home owners are expected to dig deeper into their pockets to pay back their bonds.
Theoretically speaking, interest payments on a R1 million home loan will cost close to R200 more a month.
Homeowners will spend more than R300 more a month on interest for a R2 million loan.
But Econometrix economist, Azar jJmmine, said that car financing would be steeper.
“Simply because one would be looking at a shorter time horizon through which to repay.”
Seeff said that despite the accelerated rate hikes since mid-2022 and the expected drop in houses sold, the property market remains stable
By: Nokukhanya Mntambo
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