Latest news with #R15
The Citizen
15 hours ago
- Business
- The Citizen
Rate cuts save homeowners thousands per year as housing demand rebounds in 2025
Today's announcement by the South African Reserve Bank (SARB) sees the repo and prime lending rates cut by 25-basis points for a second consecutive time. Now at 7% and 10.50% respectively, borrowing costs are officially 1.25% lower than they were a year ago – a welcomed result that Rhys Dyer, CEO of the ooba Group, believes will continue to support homebuyers and homebuying activity. 'At the current prime lending rate of 10.50%, the monthly repayment on a home priced at our Q2 '25 average approved bond size of R1,455,712 equates to R14,534 over 20 years – down from R15,776 just a year ago. Savings like these add up to almost R15,000 extra in a homeowner's pocket over the course of a year.' Dyer adds that consumers' improved affordability is reflected in ooba Home Loans' latest figures. 'In Q2 '25 we saw an 11% year-on-year increase in home loan applications and a 18.5% increase in the total value of these applications,' he shares. 'This points to ongoing market recovery, increased buying power and growing buyer confidence.' Interestingly though, deposits – a key indicator of consumer liquidity – have drifted lower, down by 13.5% year-on-year for the average homebuyer and 1.9% for first-time homebuyers (as at Q2 '25). 'We do however believe that these figures are reinforced by strong bank lending activity, including attractive incentives like zero-deposit loans and some of the highest discounts to the prime lending rate seen in years,' says Dyer, highlighting an average interest rate of prime less 0.67% for its customers in Q2 '25 – a 0.11% reduction year-on-year. Economic Outlook in Support of Further Potential Rate Cuts While the country has five rate cuts under its belt since September 2024, Dyer believes that there is still scope for a further reduction. 'Today's news is certainly welcomed by the residential property sector,' he says. 'As it stands, South Africa's economic outlook provides room for monetary easing. Inflation remains anchored at the lowest levels seen in four years (currently 3%) and the country has benefitted from a series of petrol price cuts, with another anticipated in August.' And despite global uncertainty, Dyer believes that the demand for homes will build in light of today's news and the prospect of a stable, lower interest rate environment. 'The market has responded positively this year – even in the face of trade policy volatility – and we expect this to continue.' Fuelling the positive momentum is news of a second consecutive year of real salary growth, with increases of 5% to 6% outpacing last year's inflation rate of 4.4% and the projected 3.5% for this year. 'This is reflected not only in the higher value of home loan applications in Q2 '25, but also in our January – June 2025 salary data, which shows year-on-year growth in excess of inflation in average monthly gross income across four of the nine regional housing markets.' Will Rate Cuts Further Entice First-Time Homebuyers? Fuelled by recent rate cuts, first-time homebuyers are making a cautious but steady return to the market. 'While this segment has only experienced marginal year-on-year growth in Q2 '25 – up just 1% to 46% – they're spending 3.5% more on homes year-on-year,' shares Dyer. Notably, first-time homebuyers appear to be more financially prepared than in the past. 'In Q2 '25, the average deposit rose to 10.4%, a significant increase compared to Q2 '20 at 8.45%. This indicates that they are prioritising savings and are actively taking steps to pay down their home loans.' For those struggling to save, the good news is that the banks are stepping in. 'In Q2 '25, 59% of first-time homebuyers secured a home without a deposit, while 10.5% purchased a home without a deposit or access to funds for transfer and bond costs,' says Dyer. Reflecting on whether this group could return to their May 2020 peak, Dyer remains measured. 'That surge was driven by a record-low 7% interest rate – a level that we're unlikely to see again anytime soon. Still, the banks remain committed to supporting first-time homebuyers and we expect their presence in the market to continue strengthening' he concludes. Issued by Jess Gois
Daily Maverick
19 hours ago
- Health
- Daily Maverick
Retirement plan — How to ditch unnecessary life insurance without affecting your dread disease cover
With rising premiums and no dependants to take care of, it makes no sense to keep paying for life insurance. However, dread disease is another story Question: My wife and I are approaching retirement. We are in good health, have no debt and have built up a reasonable nest egg. However, we are paying R15,000 per month for life and dread disease cover – and the premiums are increasing a lot each year. We don't have any dependants, so life cover seems unnecessary at this stage. We do want to keep dread disease cover. When I approached the insurer to cancel the life cover, I was told that the dread disease benefit would fall away too. What are our options? Answer: This is a common issue and one that I regularly encounter. What do you do with the life insurance that you don't need and will use up a lot of your pension? Many insurers still link dread disease cover to a life insurance policy, which creates a problem. You want the dread disease cover but don't need the life cover. Before we start considering the alternatives, let's try to understand why one would have this type of cover in the first place. Life cover We usually take out life cover to cover any debts and ensure that our salaries are covered while we still have dependants in the house. If these needs are no longer there, and you don't need to keep the cover for liquidity in your estate or to give to your children as an inheritance, then it really does not make any sense to keep the life cover. Because premiums generally increase steeply with age, you're often paying a lot for a benefit you'll never personally use. Dread disease cover Dread disease insurance covers all those additional medical costs that you will have should you become really ill with a dreaded disease. It pays out a lump sum on diagnosis of serious illnesses such as cancer, stroke or heart attack. The payout can help with: Out-of-pocket medical expenses not covered by your medical aid; Alternative or overseas treatments; or Non-medical costs (for example, home-based care, travel or accommodation). As you get older and move on to a fixed income, the financial impact of a major illness can ruin you. That's why this type of cover often becomes more relevant with age. Given that you don't need the life insurance, but you do have a need for dread disease cover, I would recommend that you consider one of the following options: Switch to a stand-alone dread disease policy There are insurers in South Africa that offer dread disease cover without tying it to life cover. Since you are still in good health, this is worth exploring. I've helped many clients get stand-alone cover in their sixties. Self-insure Another option is to carry the risk yourself by building up a fund to cover this type of expense. Before you do this, I would recommend that you speak to a decent financial planner. You need to ensure that your medical aid and gap cover are robust enough. If you redirected the R15,000 a month that you are spending on your risk cover, you would build up a fund of more than R1,000,000 within five years if you achieved a return of 9% a year. Once you are in that position, you will not really need the dread disease cover, as you will have the funds to meet a lot of those additional needs. The risk comes if you become really ill in the first five years. An alternative option is to do this in stages. You reduce your current cover each year and invest the amount that you save in premiums. Over time, you will build up sufficient capital to allow you to cancel all the risk cover. Continuing to pay escalating premiums for life cover you no longer need is probably not the best use of your money. Whether you get a stand-alone dread disease policy or begin building a reserve fund, the goal should be to cover the risk in a way that's sustainable and aligned with your stage of life. With a bit of planning and the right advice, you can retain peace of mind without sacrificing your financial freedom. DM Kenny Meiring is an independent financial adviser. Contact him on 082 856 0348 or at Send your questions to [email protected]
The South African
a day ago
- Sport
- The South African
Kaizer Chiefs transfer news: R76 million worth of players leave
Kaizer Chiefs have been busy in the ongoing transfer window. The Glamour Boys suffered a rather disappointing 2024/25 campaign. Despite ending their trophy drought, Kaizer Chiefs failed to finish in the league's top eight. And while the Glamour Boys have welcomed some quality new signings, they've also lost some top players ahead of next season! READ MORE • Orlando Pirates transfer news: Heartbreak for African star! READ MORE • Another Chiefs star wanted in Europe, club act fast! Kaizer Chiefs will be without no less than eight players from last season's squad for the upcoming season! In total, approximately R76 million worth of talent left Naturena, as per Transfermarkt . Kaizer Chiefs parted ways with Edmilson Dove, Edson Castillo, Tebogo Potsane, Sabelo Radebe and Mduduzi Mdantsane. They all left the club as free agents, meaning for free. Furthermore, the only player Chiefs actually recouped some money back on was Yusuf Maart. Maart left Kaizer Chiefs to join SV Ried in a deal worth a reported R15 million. Njabulo Blom's loan spell at the club came to an end meaning he's the one outlier who wasn't exactly a Glamour Boy. READ MORE • How much Orlando Pirates paid for Oswin Appollis! Where do you predict Kaizer Chiefs will finish next season? Can they lift the Betway Premiership title? Let us know by clicking on the comment tab below this article or by also emailing info@ or sending a WhatsApp to 060 011 0211. You can also follow @ TheSAnews on X and The South African on Facebook for the latest news.
IOL News
2 days ago
- Business
- IOL News
Consumer take-home pay holds steady amid inflation and economic uncertainty
Consumer take-home pay, tracked in the BankservAfrica Take-home Pay Index (BTPI), held steady in June 2025, after three months of moderation, due to the favourable inflation rate and expectations of an interest rate cut on July 31. Image: IOL / AI Consumer take-home pay, tracked in the BankservAfrica Take-home Pay Index (BTPI), held steady in June 2025, after three months of moderation, due to the favourable inflation rate and expectations of an interest rate cut. However, while average salaries might increase by 5% this year based on current conditions, future earnings and unemployment levels may be adversely impacted by external factors impacting on the economy, an economist has warned. 'The nominal average take-home pay of R17 310 in June 2025 declined marginally by 0.1% on May's R17 325. However, it was still well above the R15 514 level a year earlier,' said BankservAfrica's Head of Stakeholder Engagements Shergeran Naidoo. He said the economic outlook had deteriorated in recent months even though the first six months of data from the index signaled that 2025 would, on average, be a good salary year. Inflation adjusted take-home pay moderated marginally by 0.2% month-on-month to R14 804 in June, compared to R14 827 in May, but was still notably up on year-ago levels. 'The significant moderation in consumer inflation in 2024 has had a positive impact on the purchasing power of salary earners and the scenario continues into 2025, with the latest headline CPI figure at only 3% for June 2025,' said Independent Economist Elize Kruger. 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 ✕ Ad loading After challenging years for salary earners, due to the sluggish local economy and the elevated inflation rate, 2024 turned out to be the best year since 2015, with an average real salary increase of 1.5%. 'With inflation forecast to average 3.5% in 2025 - unlike 4.4% in 2024 – and the broader industry suggesting an average salary increase above 5%, 2025 will be the second consecutive year of a real increase in earnings,' said Kruger. She said the favourable inflation environment had created ample scope for the South Africa Reserve Bank to cut interest rates further, in addition to supporting salary earners' consumption expenditure and softening the impact of global headwinds on the local economy. 'Carpe Diem Research Services forecasts a 25 basis percentage points cut at the Monetary Policy Committee meeting tomorrow, July 31, 2025,' said Kruger. She said this was likely to be the final cut in the current downward cycle. She said that even though 2025 had turned out to be a volatile year so far, real consumption expenditure had held up well, which was encouraging for an economy heavily reliant on consumer spending. 'Even with confidence levels slipping in the first quarter, the level of real final consumption expenditure by households was 2.8% higher compared to a year earlier. Early indications from StatsSA indicate that the performance continued in the second quarter, with real retail sales in the first five months of the year up by 4.3%,' she said. However, there had been downward revisions to growth prospects - locally and globally - and high levels of uncertainty, fueling low confidence and a pause on investment decisions. 'This could affect employment levels and earnings in the coming months, in an economy with an already high unemployment rate of 32.9%,' said Kruger. Additionally, tensions between the US and South Africa, coupled with uncertainty over the tariff landscape beyond August 1, presented a growing concern for the economy and its trade outlook, she said. Visit:
The Citizen
2 days ago
- Business
- The Citizen
June salaries stabilised after months of decline, but adverse external factors remain
If you earn a salary you will be glad to hear that there is some relief coming, but the dark cloud of US tariffs still hovers. Salaries stabilised in June after three months of decline, supported by a favourable inflation environment and an anticipated interest rate cut on Thursday. Salary earners may see some relief from financial pressures, but external factors are still expected to weigh on future earnings and unemployment levels. Take-home pay, tracked in the BankservAfrica Take-home Pay Index (BTPI), held steady in June after three months of moderation. 'The nominal average take-home pay was R17 310 in June, showing a marginal 0.1% decline on May's R17 325. 'However, this was still notably above the R15 514 level of a year ago,' Shergeran Naidoo, BankservAfrica's head of stakeholder engagements, says. However, Elize Kruger, an independent economist, says while the first six months of BTPI data signals 2025 will, on average, be a good salary year, the economic outlook has deteriorated in recent months. ALSO READ: Take-home pay slides for third month with grim job opportunities and earnings Significant moderation in inflation helped salaries Real take-home pay, adjusted for inflation, moderated marginally by 0.2% to R14 804 in June, compared to R14 827 in May, but was still notably up on year-ago levels. 'The significant moderation in consumer inflation during 2024 had a positive impact on the purchasing power of salary earners and the scenario is continuing into 2025, with the latest headline inflation at only 3% for June,' Kruger says. After a challenging few years for salary earners, due to the sluggish local economy and the elevated inflation rate, 2024 turned out to be the best year since 2015, with an average real salary increase of 1.5%. 'With inflation forecast to average 3.5% in 2025 unlike the 4.4% in 2024 and the broader industry suggesting an average salary increase above 5%, 2025 will be the second consecutive year of a real increase in earnings.' Kruger says in addition to supporting salary earners' consumption expenditure and softening the impact of global headwinds on the local economy, the favourable inflation environment created ample scope for the South African Reserve Bank (Sarb) to cut interest rates further. 'Carpe Diem Research Services forecasts a 25 basis points cut at the Monetary Policy Committee (MPC) meeting tomorrow. This is likely to be the final cut in the current downward cycle.' ALSO READ: Salaries decreased by 2% in April, but higher than a year ago 2025 volatile but real consumption held up well Despite 2025 turning out to be a volatile year so far, real consumption expenditure held up well, which is an encouraging sign for an economy heavily reliant on consumer spending. Even with confidence levels slipping in the first quarter, the level of real final consumption expenditure by households was 2.8% higher compared to a year earlier. Early indications from Statistics SA indicate that the performance continued in the second quarter, with real retail sales in the first five months of the year up by 4.3%. Uncertainty and low confidence could affect employment and salaries However, Kruger points out that the general economic environment deteriorated in recent months, with downward revisions to growth prospects locally and globally and high levels of uncertainty, fuelling low confidence and a pause on investment decisions. ALSO READ: Decrease in take-home pay reflection of mounting economic pressure 'This could affect employment levels and earnings in the coming months, in an economy with an already high unemployment rate of 32.9%. In addition, tensions between the US and South Africa, coupled with uncertainty over the tariff landscape beyond 1 August, present a growing concern for the economy and its trade outlook. 'As such, it remains of utmost importance that the South African government prioritise its diplomatic engagement with US authorities to negotiate a favourable trade regime to avert job losses in sectors such as automotive and agriculture, which would otherwise face severe impacts,' Kruger says.
