Interest Rates Suck Us Dry
Dec 6th, 2007 by Johan
Not only does it take a long time to sell Simon’s Town properties….the latest interest hikes will slow it even more.
You know that Simon’s Town properties take about four months to sell and the latest interest hike to 14.5% will not help. From mid 2006 the repo rate increased by 400 base points taking massive amounts of money out of our pockets. Source: ABSA Property Trends
How much money is it taking from our small Simon’s Town community?
Let’s assume that 15 million worth of properties were registered per month with bonds in Simon’s Town for the last 5 years. Then we are paying back R31.5 million more per month than what we did in mid 2006.
It’s great to have you back. Thanks.
