Finance Minister Tito Mboweni’s recent supplementary budget speech offers a few rays of hope for property owners, says Tony Clarke, managing director of the Rawson Property Group.
The minister’s aim – to “create jobs, reduce the cost of doing business and build a competitive economy” – could have some positive knock-on effects on property.
“To stimulate the economy, the government needs to stimulate spending… One of the main ways of achieving this is to cut interest rates, making it less attractive for consumers to save capital and more attractive for them to invest in assets.”
This, Clarke says, will give homeowners much-needed relief on monthly bond repayments, as well as giving new buyers an incentive to enter the property market. The resulting boost to activity will help stabilise property prices and contribute to a return to healthy price growth in time.
Homeowners will, however, need to budget carefully to ensure they can continue to meet their monthly bond repayments and keep up with essential maintenance on their home.