Even while the banks are not really considering large interest rate concessions these days, now is still a very good time to buy because of the low prime interest rate. The current prime rate of only 9% was determined in November 2010 and is still holding steady, and according to Bill Rawson is likely to do so for at least another year.
‘Interest rates likely to stay low’
http://www.iolproperty.co.za/
The South African Consumer Price Index, so closely watched by the economists trying to predict future scenarios, has, contrary to the expectations of many of these commentators, come down in the last two months.
A very welcome wide scale cut -back in spending by the general public, says Bill Rawson, Chairman of the Rawson property group, has brought the Consumer Price Index y on y growth down from close to 7% to just on 6%.
This, says Rawson, is good news for consumers and for businesses needing credit as it will probably mean that the current ultra-low interest rates so beneficial to buyers on long term credit, especially home buyers, will probably remain in place until well into the second half of next year.