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Who Will Benefit from Low Interest Rates?

Who Will Benefit from Low Interest Rates?

Interest rates in South Africa are at an historic low as the Reserve Bank tries to get the economy going in the face of Covid-19. Which South Africans are most likely to benefit – and which sectors of the property market will this affect?

It’s clear that anyone who relies on a fixed income or interest from savings will not benefit from low interest rates. Neither will South Africans who have lost their jobs and who are begging their banks for payment holidays. But if you’re in secure employment and your income is steady, you’re in the pound seats when it comes to property, with plenty of choice at good prices. Developers or property owners looking to sell starter homes also stand to benefit from low interest rates, as some first time buyers are able to afford repayments.

First time buyers with reliable salaries are not the only property buyers who could benefit. Investors with an appetite for increasing their property holdings and who are looking for funding are also set to benefit from more affordable repayments. With sluggish demand, there are lots of bargains to be had in the commercial market as well as the mid to top end of the residential market. Just recently, an historic Cape Town property that previously attracted bids of up to R100 million and had been valued at R50 million by the municipality attracted a top bid of only R15.5 million. (Source:

“It was the best of times, it was the worst of times,” begins Charles Dickens’ Tale of Two Cities. Perhaps we could title 2020 the Tale of One Global Pandemic. For those with the appetite for risk and enough guaranteed income to weather the storm, this is the best buyers’ market in a very long time. Whether those decisions will turn out to have been made in the age of wisdom or the age of foolishness requires expert knowledge. For advice on where we think the wisest property decisions can be found, contact us on

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