Latest news with #SamuelSeeff
IOL News
4 days ago
- Business
- IOL News
SARB missed key opportunities to cut interest rates, says property group
The South African Reserve Bank's potential interest rate cut next week could aligns with global monetary policy trends. Image: SARB/Facebook The South African Reserve Bank (SARB) has definitely missed at least two vital opportunities to cut the interest rate, says Samuel Seeff, the chairman of the Seeff Property Group. He told "Independent Media Property" that the lacklustre economy and the property market need an injection of energy, and no doubt it needs a rate cut, while the Bank has been too overly cautious. 'This is not a time for a 'wait and see' approach; it's time for bold action, and a cut of at least 25bps. "The SARB stance has been particularly disappointing given that the data has been very favourable for lower rates throughout this year, with inflation below or near the bottom of the target range, and the ZAR relatively stable, notably trading below R18, even after Trump's latest tariff comments,' Seeff said. While global markets are dealing with the economic uncertainty triggered by US tariff hikes, South Africa's residential property sector continues to show encouraging signs of resilience. BetterBond's data for July shows that bond applications have risen by 7.4% for the 12 months to May 2025, with home loans granted up by an impressive 13.6%, says Bradd Bendall, BetterBond's National Head of Sales. He said this points to renewed buyer confidence and a more stable market environment. 'Driving this upward trend is the recent easing of interest rates. With inflation recently comfortably within the 3 to 6 percent target range, we expect the South African Reserve Bank to announce another 25 basis point rate cut when the Monetary Policy Committee meets next week,' Bendall said. He said this would drop the prime lending rate to 10.5%- a level last seen in November 2022. 'Although not quite at pre-pandemic levels, this cut would bring welcome relief to homeowners and consumers. On a R2 million bond, for example, the lower prime lending rate would mean a saving of just over R300 a month.' 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 BetterBond said this potential cut aligns with global monetary policy trends. This was because both the Bank of England and the Reserve Bank of India are expected to reduce rates in August, suggesting a broader shift toward interest rate easing to stimulate economic activity. The US Federal Reserve is also expected to lower rates when it meets on 30 July, and the South African Reserve Bank is likely to follow suit the following day at its rate announcement, the bond originator said. Seeff said its take is that the Reserve Bank needs to be bold and act in the interest of the South African economy. 'The MPC needs to focus on what the SA economy needs, a bold rate cut which can serve as a rocket to push the economy and try and grow the GDP, a critical necessity given the unemployment rate and what is best for everyone in South Africa.' The next SARB's Monetary Policy Committee will announce the July interest rates decision next week. Independent Media Property
Daily Maverick
04-07-2025
- Lifestyle
- Daily Maverick
Love the view, trust the plan — choosing where to live your best life in your old age
Growing old is not for the faint of heart. It's complex and demands far more planning than picking a seaside village and hoping for the best. Here's how to choose where to begin this new chapter in life. There's a moment, sometimes creeping in at the edge of a decade, sometimes announced by a friend's moving boxes, when the question crystallises: where will I grow old? For some, it's a chance to reinvent their daily life. For others, it's a calculation of cost, availability of care and how far the grandkids will need to travel for Sunday lunch. Here's what to consider before making the move. The geography of good living The trend of coastal migration among South African retirees has long been popular. This is because the country offers one of the best coastal climates with plenty of sunshine and opportunities to live a healthy lifestyle, says Samuel Seeff, chairperson of the Seeff Property Group. Coastal towns generally also offer great infrastructure and healthcare facilities, as well as natural attractions, and he says many people buy holiday homes in which they later retire. 'Plettenberg Bay, Hermanus, Langebaan, Zimbali, the Eastern Cape and KwaZulu-Natal's South Coast towns are good examples of where people do this.' Research by the World Health Organization points out the benefits of access to nature – so-called green and blue spaces – in improving mental and physical health. That said, don't settle for scenery alone. Retirees seldom want to live in isolation and one needs to assess whether you want to be close to friends and family. Cost is another factor to consider. 'Western Cape and Garden Route towns are, for example, more expensive compared with KwaZulu-Natal's South Coast towns,' Seeff says, adding that homes in the Eastern Cape are usually priced midway between these two provinces. What to look for in a retirement home Not all retirement villages are created equal and, given the challenges of infrastructure in South Africa, future residents of retirement homes should prioritise their security and sustainability. Infrastructure and sustainability Start with the basics and interrogate how self-reliant the place is. We live in a country where power cuts and water shortages are standard. Retirement homes with their own solar infrastructure and water tanks are some things to look out for when choosing a retirement home, Lonehill Manor Retirement Estate advises. Solar energy also reduces electricity bills, and backup water systems cater to the hygiene and medical needs of residents with health issues, it adds. Security first Older people are particularly vulnerable to crime, and security is a priority when looking for a new place to live. This makes secure estates a top choice among retirees. Ideal safety features include 24-hour security, CCTV, biometric access, fencing and emergency response services, says Evergreen Lifestyle Retirement Villages. Lifestyle amenities A good retirement home should not only protect you but also enhance your lifestyle. Seeff says retirees should look for leisure amenities when wanting to move, such as pools, walking paths, libraries, communal lounges, hobby rooms and gyms. And a heated pool, adds Lonehill Manor, is beneficial for rehabilitation and enjoying aqua aerobics. The value of community should also not be underestimated. Having access to social clubs and community-run events fosters community, encourages active living and supports a sense of purpose and joy in your everyday life, Evergreen Lifestyle Retirement says. It adds that for many retirees, pets are a source of emotional comfort, so be sure to find out about the estate's pet policy. Frail-care facilities When you're physically healthy, it is important to plan for a time that you won't be. Many retirement homes offer frail-care facilities on-site that allow you to transition gradually without having to relocate or uproot your support system. For example, Evergreen's villages offer specialised frail-care services like 24-hour nursing care, dementia and Alzheimer's care, step-down units and emergency services on-site. Management matters You can live in the most beautifully built unit in the best-located retirement home, but if the management is not up to scratch, the cracks will show quickly. Ask who is in charge and ask about their experience in managing retirement estates, advises Wouter Fourie from Ascor Independent Wealth Managers. Request copies of annual general meeting minutes, speak to residents about how disputes are handled and find out which mechanisms exist for complaints or changes. Life rights vs property ownership You've found the perfect retirement spot, but what are you actually buying? In South Africa, more retirees are opting for a life right. It's a legal arrangement whereby you pay for the right to live in a unit for the rest of your life without owning the property, Seeff explains. The model is growing in popularity because of its cost-effectiveness and simplicity. The appeal is that it's generally cheaper than investing in a sectional title, Seeff says. The maintenance burden also falls on the property owner, who guarantees to buy it back at a specified rate. But you won't benefit from capital appreciation if property values rise, nor can you leave the rights to dependants in a will, Seeff cautions, adding that life right properties usually come with extra fees for servicing, meals and access to amenities. Prices for these properties range from R1.3-million to R7.5-million or more, on average, compared with sectional or full-title homes that tend to have higher upfront costs, generally starting at about R2.3-million to R3.2-million. Sue Torr, managing director of Crue Invest, says many clients have found themselves in sticky situations because they did not fully understand their life right contract when they signed it. 'Our best advice is to seek guidance from a property lawyer to review all clauses, especially those relating to refunds, termination conditions, maintenance obligations, levies and annual increases,' Torr says. You should also be clear on all terms that relate to frail-care provisions, resale procedures, administration costs and rules around pets, she adds. Health, wealth and what lies ahead The cost of healthcare rises faster than inflation and most people are unprepared for this. Medical aid doesn't typically cover long-term, continuing frail care, says Janneke Gerber, Western Cape manager of Succession Financial Planning. 'Some plans do cover short-term care when the elderly person is recovering from a medical procedure or operation, but this is only temporary.' According to Gerber, inflation related to medical costs can be up to 15% a year. Torr says it's important to budget realistically for healthcare costs in retirement and build in robust assumptions when it comes to the realities of medical inflation. Don't believe that your past medical history is an indication of future good health, she warns, since many illnesses are a result of ageing. Her advice is to budget for worst-case healthcare scenarios and be realistic about the future cost of full-time care. 'Frail-care costs can easily be between R30,000 and R45,000 per month,' Gerber explains. People moving to life right villages often find themselves unprepared for the additional expense of frail-care units on top of their levies, she adds. Frail care at home can be a more affordable option, but often you would need more than one caretaker to work in shifts. 'The carers are normally not trained nurses, but did do a course in caring for the elderly,' Gerber says. 'The family has to be careful who they select to take care of the elderly person and it is recommended that they use a reputable agency.' Ready, set… maybe not yet Relocating when you're not emotionally prepared can be destabilising, as retirement can be a daunting life change, Evergreen Lifestyle Retirement says. 'We believe that the best time to move to a retirement village is while you are still active and independent.' First, you need to do research on any new place where you want to move, Seeff says. 'There is nothing worse than moving from Joburg to a small town only to find that it doesn't meet your lifestyle needs.' DM
Zawya
27-06-2025
- Business
- Zawya
South Africa: Interest-rate drop sparks golden opportunity for homebuyers, says Seeff
With interest rates dipping a full percentage point compared to last year, Samuel Seeff, chairman of the Seeff Property Group, believes there's no better moment to secure a family home. More than just a physical structure, a home represents emotional stability and long-term financial growth. As rates fall, the opportunity to invest in property becomes not only achievable—but a strategic move toward building a strong legacy. Unlike volatile investments, property tends to appreciate steadily over time, offering a tangible asset that protects your family's financial future and provides a comforting sense of security and permanence. Seeff says a family home is more than just bricks and mortar, it is the foundation upon which to build a life, and a family, and the canvas for creating lasting memories. It grants you the freedom to customise your living space, fostering a sense of belonging and control that renting simply cannot match. With each mortgage loan payment, you are not just covering a cost, but actively building equity. It is a forced savings plan that grows your personal wealth and can be leveraged for future financial needs. Joint buying power While the dream of homeownership might seem out of reach, especially if you feel you cannot finance it alone, there are options, he says. The traditional bank home-loan route tends to be the most common, and securing pre-qualification upfront can give you a clear understanding of your affordability and strengthen your negotiating position. If you are unable to afford the property on your own, then alternative financing options exist. You could purchase the property jointly with a spouse or a partner where you can combine resources, and which may greatly improve your ability to purchase your own home. You could also consider purchasing it with siblings as a family. This could allow you to pool incomes for bond qualification, and share the financial responsibilities, thus making homeownership significantly more accessible. Protect your investment The parties to the purchase must, however, bear in mind that it is a long-term commitment, and they will be jointly and severally responsible for the home-loan debt and monthly repayments. Seeff says it is important to ensure that you are financially stable before committing to such a big financial responsibility. You should never overextend yourself, says Seeff. Buy below your means, but buy the best that you can afford. Aside from being responsible about ensuring you pay your mortgage loan timeously every month, you should look after the property and keep it well maintained to ensure it appreciates further in value. The banks offer various mortgage-loan packages aimed at assisting consumers to purchase and invest in property. It is important to be cognisant of the fact that purchasing a property is a significant financial decision which requires a long-term commitment of 20 to 30 years. It will provide stability, a roof over your head, and a place to call 'home', he says. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
28-05-2025
- Business
- IOL News
Property group urges SARB to cut interest rates for economic growth and job creation
Lower interest rates will reduce the cost of financing homes, thus enabling a higher affordability at a given monthly financing payment. Image: Simphiwe Mbokazi / Independent Newspapers. A South African property group has reiterated its call for the South African Reserve Bank (SARB) to step in with an interest rate cut as a vital stimulus for economic growth and job creation. National year-on-year house price inflation has maintained a modest pace of 2.8%, according to the latest figures from Lightstone's Property Index. This steady, albeit sluggish, trend is echoed in the RE/MAX National Housing Report for the first quarter of this year, which reveals a 2.1% increase in average house prices compared to the same period in 2024. With Consumer Price Inflation (CPI) sitting close by at 2.7% as of March, these figures paint a nuanced picture of South Africa's residential property landscape. As the economy stands at a pivotal juncture, a robust cut of at least 25 to 50 basis points is not just desirable but a critical imperative, according to Samuel Seeff, chairman of the Seeff Property Group. He said the country simply can no longer bear keeping the interest rate so high for so long. As it is, he said the overly cautious approach by the bank has missed at least two opportunities to provide relief to consumers and the economy. 'The pressing challenge of unemployment simply can no longer wait. A decisive move by the SARB now would signal a commitment to revitalising economic activity. It would also provide much-needed support to businesses and consumers, and facilitate an environment conducive to investment and job creation,' Seeff said. The property group said the case for such monetary easing is strongly supported by the current inflation landscape. It said despite the recent benign increase in inflation to 2.8%, it remains comfortably below the Reserve Bank's 3-6% target range. Despite headwinds out of Washington, it said the rand has also strengthened to below R18 to the US dollar. 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 At the time of the open yesterday, the USDZAR traded at R17.88, according to Reezwana Sumad, research analyst at Nedbank CIB. 'The USDZAR traded steadily weaker over the course of the session to close the session at R17.92. Since the close last night, it has traded incrementally weaker, and the USDZAR is trading at R17.98 currently this morning. "The major currency pairs have also lost ground to the USD, with the EURUSD trading at 1,1305 this morning and the GBPUSD at 1,3470. Possible trading range for the USDZAR today(Wednesday) is R17,80 to R18.15,' Sumad said. She added that the local markets have traded cautiously over the week thus far and are likely to remain so ahead of the SARB's MPC. On the international front, she said headlines from the US continue to provide the catalyst for market activity. Seeff said the prevailing remarkably low inflation level indicated that demand-side pressures are relatively subdued and the risks of igniting an inflationary spiral through a rate cut are minimal at this stage. He said the stability of the currency provides further mitigation, thus providing a valuable window for the SARB to implement a more accommodative monetary policy stance that directly benefits the domestic economy. According to data analysed by Lightstone, which evaluated property bought by a natural person and where the transaction was for a single property, young homeowners are entering the market later than they did in the past, and are opting for bonded, secure living. In 2024, people aged between 20-35 (youth) accounted for 30% of residential property purchases, down from 36% in 2019 and 41% in 2014, with tough economic conditions and changing lifestyles cited as the likely reasons behind the shift. While youth accounted for 30% (52 500) of residential property transactions in 2024, it was the second largest group behind the Settled category (36-50) at 43% (76 000). The Mature category (51-64) (38 000) accounted for 21%, while the Pension category (65 and older) accounted for 6% (10 000). While the recent rate cuts have provided some relief, Seeff said the benefits have now been eroded by keeping the interest rate at least 100 basis points above the pre-Covid rate. He said time is ticking and the country simply can no longer wait. Seeff said there is now a golden opportunity for the bank to act boldly within the available monetary policy space to address the urgent needs of economic recovery and expansion without jeopardising its price stability mandate. A rate cut would inject much-needed momentum into the economy by lowering borrowing costs for businesses and stimulating investment while adding more money into the pockets of consumers to spend in the economy, he said. The property group said while a 25bps cut would be most welcome, they urged the Bank to provide a more robust cut of at least 50bps as an immediate injection of economic confidence to kickstart the economy. 'Naturally, the property market, which currently lags the pre-Covid volumes, will also benefit from a more pronounced rate cut. Aside from enabling more first-time property buyers to get into the market, it is an important economic contributor with a significant economic multiplier benefit,' Seeff said. Independent Media Property
The South African
27-05-2025
- Business
- The South African
Buy or rent? Here's what the EXPERTS suggest
With many South Africans weighing up the pros and cons of renting versus buying property, experts say owning your own home remains the smarter long-term financial decision – especially in the current market. According to Samuel Seeff, chairman of the Seeff Property Group, purchasing a property allows individuals to build wealth and security by investing in an appreciating asset, rather than paying rent with no return. 'Each mortgage payment contributes to building equity in your home,' says Seeff. 'In contrast, rent is simply an expense with no long-term benefit.' As the outstanding loan decreases and property values increase over time, homeowners gain a growing asset that can be leveraged to achieve future financial goals. This makes buying a home both a savings mechanism and a long-term investment. RELATED | Vacant land in Clifton sells for R170 million Beyond the financial advantages, Seeff highlights the stability of homeownership. Owners are shielded from uncertainties such as rent hikes, non-renewal of leases, or landlords selling the property. 'You also gain the flexibility to renovate or upgrade your home to suit your lifestyle – something renters often can't do,' he adds. 'This not only improves your quality of life but also enhances the value of your property.' Property remains a solid asset class and a reliable hedge against inflation, Seeff explains. While rental prices tend to rise year on year, home loan repayments can remain relatively stable over time – subject to interest rate fluctuations. By making extra payments, using bonuses, or investing spare funds into a home loan, homeowners can reduce their debt faster or build equity more quickly. A major advantage in South Africa is the accessibility of home loans. Many banks continue to offer 100% financing, sometimes even including transaction costs, making it easier for first-time buyers to enter the market. In fact, a recent survey revealed that 46.5% of home loans granted in recent months were for first-time buyers, highlighting ongoing demand and opportunity in the sector. Seeff encourages financially secure individuals to act now, noting that property prices are continuing to appreciate. 'The longer you wait, the more you're likely to pay,' he warns. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
