Winter 2015, Mortgage rates and Shark Cage Diving
During the July school holidays we welcomed an influx of surf travelers to our village who came to see the world’s best compete at the Jeffreys Bay Winterfest, with the main attraction being the World Surf League event. The majority of our visitors in July seem to be from Cape Town with families making the yearly pilgrimage to our world class surf breaks. During the April/May holidays our village hosted the annual South African Longboard Championships, which was a great success and saw the village abuzz with competitors and their families for approximately 10 days.
Our village, having a proud connection with the ocean, has recently been faced with the ludicrous intentions of a local business owner indicating his interest in applying for a shark cage diving permit. Most people have reacted in disbelief, asking us if it is a joke, well, it is not. Personally we believe shark cage diving to be a controversial activity with many potentially adverse effects to the ecology and ocean users. Our local tourism committee has taken an official position against such activity, suggesting that the benefits will be eclipsed by the undesirable effects to tourism. If you would like to support a petition against this activity please go to https://www.change.org/p/siyabonga-dlulisa-dept-environmental-affairs-chief-directorate-integrated-coastal-management-stop-shark-cage-diving-in-st-francis-bay
We have taken this quieter winter time to attend some Continued Professional Development courses. The sessions were offered by the Estate Agency Affairs Board, and are intended to keep estate agents informed and skilled within the industry. The most important topic covered during the three day event is the update on the various legal aspects relating to the sale of fixed property. Should you have any queries relating to the sale or purchase of your property in Cape St Francis you are welcome to visit us at our office at 5 Da Gama Road in Cape St Francis.
The interest rate has recently been increased and many economists have indicated that we are currently entering a global cycle of increased lending rates. The current increase in the repo means the following to potential property buyers:
The increase of 25 basis points takes the repo rate to 6% and the prime lending rate to 9.5%
An additional R16 per R100 000 borrowed to your monthly repayments
Average household income requirement for an average home loan will increase from R24 000 to R24 400
The above shows the reality of a simple increase of 25 basis points to the SARB repo rate, quite sobering for most, and definitely worth mentioning. Be on the lookout for further increases to the lending rates and should you be unsure what this all means, come and pay us a visit for a quick chat and update.
We wish you a warm and cosy winter, summer is around the corner!
Regards
Frieda and Jal
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