Marketing manager at Engel & Völkers real estate company, Helandi Moolman, says there is never a wrong or right time to purchase property, as it is a long-term investment and it is important to climb the property ladder as soon as possible.

"If you are already on the property ladder and there is affordability and a need to upgrade, then one can use their initial house purchase to acquire the next property – this can be done through the sale or rental of the initial property," she adds.

Rather than selling or renting out the initial property, if access to the bond is available, one can use it to upgrade their current property while increasing its value. However, it is important for one to ask themselves if there is really a need for an upgrade on the existing property and if the upgrade will make sense to the next buyer. 

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She advises those who do not want to pay rent for most of their lives to buy property whenever their finances allow it. Should the interest rate decrease, the bond repayment will also decrease. However, she would advise trying to keep the payment the same as when the interest rate was higher to try and finish off the bond quicker.

Property developers can also benefit from the interest rate hike if their pricing on properties is market-related. If their pricing is too high, they might lose out on buyers, if their pricing is too low, they will run a loss. Moolman explains that "If the market is not favourable for selling, it is advisable for developers to rent out those properties till they are in a better position to sell."

Moolman further says that, in general, it is much more affordable to buy an already built property than to build from the ground. However, if you cannot find your dream home, it is okay to build one, but it is important to choose suitable architects, builders and project managers.

Also, building inflation is currently on the rise. This leads to the question a consumer must ask, 'Do I build now? Or do I take the risk and build it in three years?' " she continues.

"Engel & Völkers, like all real estate companies, are not affected by the interest rate hike because a house is a need and not a luxury. People will always need a house," says Moolman. She concludes by saying buying a property isn’t only influenced by the interest rates, but also the location of the property plays a big role, as does whether the municipality for that area provides basic service delivery. 

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