INTEREST RATES REMAIN UNCHANGED - FOR NOW . . .
Category FINANCE
The decision taken by the Monetary Policy Committee of the Reserve Bank this week to retain interest rates at the current repo rate of 6,75% (home based loan rate at 10,25%) was certainly welcomed by the general public.
Amidst a season of increased short term debt the last decision consumers would have wanted was a motion to increase the interest rate thus for now, repayments on short term debt, credit cards and car and house premiums shall remain unchanged for at least the next two months.
A simple fact to teach yourself and to educate your kids is that the time to save money is when you have some and also not to spend your money before you've earned it.
Recently released figures also indicate that overall credit growth is relatively slow and that the average household debt to income ratio has shrunk during the past 10 years from 86% to 72%. This is good.
Stimulating our economy should be a high priority this year and creating employment in sectors other than the public sector (politicians take note) must be encouraged.
If employment opportunities are created, consumers are encouraged to spend more thus creating opportunity in the production and manufacturing industries thus causing a positive ripple effect in most industries.
It is a reality that we are fast approaching an election period where promises are made, and expectations are set by politicians to create voting favor.
Caution should be applied during this period to remain conservative in your spending and to make informed financial decisions.
Our current financial institutions still have a good appetite for financing and offers fantastic interest rates without the need for security by means of deposits.
Favorable home loan conditions currently trends and presents an opportunity to prospective home owners to commit themselves to the ever-exciting venture of buying a home.
KPS (Keageoz Property Solutions) embraces the real estate market no matter how it trends - opportunity always exist regardless of the state of the market and our professionals will advise you on the best approach to investing in real estate and making the most of your available budget.
Author: Johann Cronje
