Bruce Swain, CEO Leapfrog Property Group has welcomed the news that, for the second time in as many months, the South African Reserve Bank’s Monetary Policy Committee has dropped the repo rate, this time by 100 basis points, from 6.25% to 5.25%.

While economist and analysts were anticipating another drop, the speculation was that Reserve Bank Governor Lesetja Kganyago would opt to drop it by only 50 basis point. In light of ongoing concern and uncertainty around the effect of the Covid-19 pandemic on the economy, in addition to the challenges we already face, this is a welcome move that relieves the financial burden on all South Africans.

For the property market this is especially positive and bodes well for those looking to purchase property, particularly for the first time. A lower interest rate, the threshold on transfer duty that was recently raised to R1 million, and the fact that a buyer’s market means more room for negotiating on the part of the buyer are all good reasons to invest in property. What’s more, property has a proven track record of being a stable investment in times of turmoil.

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