“Surfing around the net and reading up on the talk in-and-around the “grapevine” it seems most consumers, investors and experts sees the forming of a GNU [Government of National Unity] in a very positive light that might even affect the high interest rate to go down. Financial markets have already had a turn for the positive in the forming of the GNU with the Rand gaining 3% value in a week. Whilst we should feel positive about this the clock is ticking whether this is a pipedream or an actual probability. Continued Consumer and Investor confidence will be the key and determining factor on the path to a lower interest rate. Sustained confidence and belief in the newly formed GNU will certainly be top priority for most consumers and Investors, something to believe in. If the Rand keeps strengthening against all global currencies and the JSE-All Share Index keeps rising the GSU could be heading in the right direction in decreasing the inflation rate and therefore a lower interest rate. BUT should the newly formed GNU fall back to “more of the same” policies not acted on by the previous government especially excessive “loadshedding” this could easily negatively influence an already fragile consumer, investor, and small business owners confidence. Only time will tell…”
“Whilst there is some positivity around the newly formed GNU the Demand for Rental Properties has surpassed Supply! In saying that a host of homeowners are taking advantage of this demand in charging outrageous rental fees. These “owners” seem to forget that should the interest rate drop in future renters will become able to buy their own piece of paradise and homeowners will be forced to rent out at a much lower fee. Property is equity and should be treated as such. The same goes for “long term” renters. Looking after your equity and a reputable renter goes hand-in-hand. According to a TPN Credit Report Survey regarding vacancies, vacancies hit an all time low since 2016 as measured on sectional & full title units recently. Rental properties are in high demand and will continue to be as more consumers become indebted due to the high interest rate and rental property is the only way for them to go. The Western Cape is currently the most sought-after Province to rent BUT unfortunately also the most expensive and in my opinion this is due to homeowners overreaching in their asking price. Unfortunately, consumers need a roof over their head and basically have no choice to either pay or become homeless. As a homeowner myself I opt for reputable renters, low yearly rental increase if any, not utilising a 3rd party who adds an extra burden with “service fees” and the mere humanity factor. As I travel a lot I am a renter myself. I opted to rent directly from the owner who has the same principles in mind as stated previously. It is not always easy to find a rental property advertised directly by an owner, but I advise utilising that route first then only using a 3rd party and ensuring the specific rental agreement, annual increases, admin fees, services fees and other demands are favourable. We live in tough times but maybe, just maybe, the political change we are experiencing could bring about positive change to renters that could enable them to buy their own little piece of equity. Consumers living on the edge of being completely indebted this change could bring relief like rain after a drought…”
Happy House Hunting
Heinz Kruger
“Take note that the content above is merely set out as the opinion of the author and his interpretation of the relevant legislation. It will not be regarded as a legal opinion and nor does the writer intend it to be. It is imperative that any reader obtain his own legal opinion relating to any of the content above and will the writer hereof or his employer not be held responsible for any of the content of this article.”
