The South African Reserve Bank (SARB) made the decision that the repo rate should remain unchanged at 5.5%. The SARB has kept the rates unchanged for 16 months, and it is the lowest in 30 years. This decision leaves the Rand less volatile.
Gill Marcus, South African Reserve Bank Governor,said “The exchange rate is, as always, highly uncertain, but the risk posed to inflation in recent months has subsided somewhat given the less volatile, albeit uncertain, global environment”.
She also said “the immediate threat to the global economy posed by the eurozone debt crisis appears to have subsided somewhat, but significant risks remain."
So, what does this mean for property investment? The lower the repo rate is, the better it is to invest in property since your bond repayments will be less.
With the economy the way it is now, you can expect to gain more due to:
- The repo rate is unchanged and at a 30 year low
- Your bond repayments will be less
- Buying a repossessed property on auction can save you thousands
Taking all of these factors into consideration, there is no better time to invest in property than right now.