Latest news with #ChasEverittInternational
IOL News
08-07-2025
- Business
- IOL News
Trump's tariffs rattle SA economy but open new doors for real estate investors
US President Donald Trump's decision to impose a 30% tariff on all South African imports from August is expected to weigh on the economy, hit major exporters, and put pressure on the property market in the short term. US President Donald Trump's decision to impose a 30% tariff on all South African imports from August is expected to weigh on the economy, hit major exporters, and put pressure on the property market in the short term. However, the shift in global trade dynamics could support South Africa's longer-term diversification efforts and bring new activity into the real estate sector. President Cyril Ramaphosa said the 30% tariff is based on 'a particular interpretation of the balance of trade between South Africa and the United States' and that government remains engaged in 'ongoing negotiations' to secure sector-specific reductions. Chas Everitt International CEO Berry Everitt says the US tariff will impact South African competitiveness, which is likely to cause a drop in demand for goods that will have repercussions not only for the South African exporting companies and their employees but also for the broader economy and the real estate market. The US is South Africa's second-largest bilateral trading partner, with $14.7 billion in exports last year and $5.8 billion in imports, a trade deficit of $8.8 billion for the US, said Everitt. 'We do expect the real estate sector to feel the effects of the US tariff decision for at least a few months while businesses adapt. There could be job losses in the export-driven industries, and the banks are likely to be more cautious about approving home loans,' Everitt said. 'This will slow demand for both residential and commercial properties and cause many investors and developers to press pause on new projects,' he added.
IOL News
14-06-2025
- Business
- IOL News
Hot property, cold dreams: Cape's soaring home prices freeze out first-time buyers
Houses are simply getting more expensive – positive for sellers – yet leaving prospective first-time buyers out in the cold and stuck in the rental market. Image: Unsplash Houses are simply getting more expensive – positive for sellers – yet leaving prospective first-time buyers out in the cold and stuck in the rental market. Statistics South Africa's latest data shows that residential property increased by a whopping 5.2% in January from the prior year, faster than the official inflation rate of 3.2% in that month. There were, however, differences as to where prices increased the most, with those looking to buy in the Western Cape set to pay a hefty 8.5% more, while property in Johannesburg was less popular, with price points growing at only 2.3%. Put another way, a property that cost R1 million a year ago would have been sold at a price point of at least R1 023 000 in Johannesburg and R1 085 000 in Cape Town – stripping out any compounding of inflation or other factors. Denese Zaslansky, CEO of the FIRZT Realty group, explained, 'at the current average home price of around R1.6m, for example, the gross monthly income required to qualify for a home loan is around R54 200, which is R3 600 less than it was at this time last year because of the rate cuts. 'But if prices continue to rise even at an average of around 5% a year… buyers who delay now will not only have to contend with a bigger monthly bond repayment but will also need to earn about R2 700 more a month to qualify for their home loan. They will thus lose most of the advantage of the recent rate decreases,' said Zaslansky. Berry Everitt, CEO of the Chas Everitt International property group, told IOL that, while these increases are positive for those who are selling their homes at this stage, they are 'also steadily creating a shortage of homes that are affordable for first-time buyers and investors, despite the recent interest rate cuts'. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The South African Reserve Bank started incrementally cutting interest rates last September in 25 percentage point increments to its current level of 10.75% at the prime rate. Zaslansky noted that 'demand has strengthened with every rate decrease since September last year, stock is drying up rapidly in popular areas and we have seen a 38% increase in sales and an average 6% price increase in our markets in the past six months'. Everitt adds that 'we worry that there are many young people who are earning well but still in danger now of being priced out of the formal market, and thus also out of their future opportunities to build equity in real estate and upgrade as their employment and financial prospects improve'. Advising anyone who can afford to buy or invest at current prices to do so without delay, Everitt says they otherwise 'risk finding themselves left out in the cold'. Zaslansky concurred: 'This means that there is no time to waste for prospective buyers and investors.' IOL
The Citizen
30-05-2025
- Business
- The Citizen
Rate cut another boost for rising property market
With the inflation rate still below 3% and the Rand stronger against the US Dollar, the Monetary Policy Committee of the Reserve Bank has decided to lower the repo rate by 0,25% to 7,25%. This is the fourth interest rate cut since September 2024 and will take the prime rate and home loan 'base rate' to 10,75%, compared to 11,75% a year ago, notes Berry Everitt, CEO of the Chas Everitt International property group, and will cut the cost of borrowing by around R17 per R100 000. 'This means that on the R1,6m average home price noted in the May BetterBond Property Brief, the minimum monthly bond repayment will drop by R272, making it easier for prospective buyers to qualify for new home loans. 'And for existing homeowners with 20-year bonds at that level, their monthly repayments will now be almost R1100 lower than at this time last year.' The news for first-time buyers is even better, he says, with the minimum monthly repayment on the average first-time buyer home price of R1,28m dropping by R218 and the gross monthly income required to qualify for a 20-year loan of that amount falling by more than R700. 'In addition, the banks have been easing deposit requirements in recent months and the average deposit for first-time buyers is currently almost 9% lower, at R175 000, than it was at this time last year. Coming on top of the Budget decisions to raise the Transfer Duty threshold to R1,2m and not to raise VAT, this means that first-time buyers now require a lot less cash to become homeowners.' Everitt says this is already being reflected in the market, with BetterBond recording a 2,2% year-on-year increase in home loan applications in April, 'which represents a huge comeback from the 15% year-on-year decline recorded in April 2024'. Today's MPC decision follows news released by StatsSA that the inflation rate in April was 2,8%, still under the Bank's current target range of 3 to 6%, despite large electricity tariff increases and higher food prices in recent months. Reserve Bank governor Lesetja Kganyago noted that inflation was also expected to remain lower than initially expected this year largely due to lower oil prices, a stronger Rand/dollar exchange rate and the decision not to raise VAT. On the other hand, economic growth projections are lower and unemployment is higher worldwide, so there is a need to lower rates to stimulate spending, company revenues and employment. Many other central banks have already cut rates in response to this situation, and the US Federal Reserve is also expected to start doing so at its next meeting. Issued by Chas Everitt International
