The current, exceptionally low interest rates in South Africa have sparked off a sudden and unexpected call for residential property bonds. This was especially noticeable in June, after the low sales of April and May, when the pent-up demand for housing resulted in a very welcome rise in home sales. Some banks reportedly saw as much as a 50% increase in bond applications in June. Rowan Alexander, Director of Alexander Swart Property says, while it is unlikely that this mini-boom will be maintained, there is now clear evidence that a higher level of demand for bonds will continue and many will be applying for the first time.
Alexander's advice for bond applicants which, if taken, would make a big difference all round:
"Many people have not yet realised that the radically lower interest rates and the banks' increased willingness to do deals have made the current period ideal for property investment. Some are making the most of these highly favourable conditions but there is scope for many others also to get onto the band wagon. Let us hope they do so," he said.
For further information, please contact Rowan Alexander on 082 581 3116 or by email : rowan@asproperty.co.za