Latest news with #SeeffPropertyGroup
The Citizen
2 days ago
- Business
- The Citizen
Look north for affordable Cape Town property under R1m
While much is made of the high property prices in Cape Town, there are in fact still many areas where you can purchase below R1m. Properties below R1.21m are also exempt from transfer duty, thus providing a considerable saving, especially for first home buyers, according to the Seeff Property Group. The northern suburbs of Cape Town is a great area to look for affordability, says Susan McCarthy, manager for Seeff Brackenfell. These neighbourhoods offer good access to transport networks, schools, and general amenities. This combines with the affordability factor, making it easier for first time buyers to get onto the property ladder, securing their own home, and building wealth. If at a later stage they need to move on to a bigger property, it always leaves the option to retain the property as an investment, given the high demand for rentals, or they could sell it at a profit to use as a deposit for their next property purchase. She says neighbourhoods such as Kraaifontein and Kuils River are a good choice for good value as you can find sectional title property in the R700,000 to R1.2m price range. In Eerste River for example, the new Chardonnay Court offers two bedroomed units with modern finishes, a solar geyser, private outdoor braai area, and a parking bay for just R949,900. It is also a neighbourhood with good amenities and access to major routes with transport such as buses, taxis, and a train station on hand. There are schools, shopping centres, medical care, places of worship, a police station, sport grounds and more. The area is popular with first-time buyers. Lightstone data shows that 37% of recent buyers are under 35-years, and a further 44% between 36-49 years. Property values increased by around 70% over the last ten years, with a significant growth spurt during the high-demand Covid boom period, thus making these a good investment. She says they are also great for rental investments. Overall, first home buyers make up a considerable portion of total home sales across the country. According to mortgage originator, ooba, there has been a slight uptick in first-time buying in the first quarter, accounting for some 46.5% of home loan applications. The survey also shows that favourable mortgage lending conditions continue to support first-time buyers, and most banks still offer full bonds to qualifying buyers, depending on the property. Young buyers are not only purchasing for their own use, but there is a growing appetite to invest in property for the rental market. Ooba for example also reported a significant rise in investment property applications from younger buyers, rising from around 3% in 2019 to 9% last year. Issued by Gina Meintjes
27-05-2025
- Business
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.
IOL News
18-05-2025
- Business
- IOL News
Point of view: the case for lower interest rates
South Africa faces a dire jobs crisis, with unemployment soaring to 32.9%. This article argues for a 50 basis point cut in interest rates to stimulate economic growth, create jobs, and alleviate the financial burden on households. Time to Back South Africans: Cut Interest Rates and Prioritise Jobs South Africa is facing a jobs crisis, and it's getting worse. The latest employment figures are hard to stomach: 237,000 jobs lost in the first quarter of 2025, pushing the official unemployment rate to a staggering 32.9%. That's 8.2 million people without work. If we include those who've given up looking for work, that figure balloons to 12.7 million, roughly 43.1% of the workforce. These aren't just stats. Behind each number is a household battling to survive, young people losing hope, and communities on the brink. Unemployment at this scale isn't just an economic issue, it's a social crisis with far-reaching consequences. It's no surprise, then, that poverty continues to tighten its grip. Over half of South Africans, around 55%, live below the poverty line, according to recent data from Stats SA. Crime has ticked up, with SAPS reporting a 6.7% rise in violent incidents like robbery and murder last year. Mental health is under pressure too, as clinics report growing cases of depression and anxiety driven by financial stress. Among the youth, almost 60% are unemployed, and the frustration is palpable. The risk of social unrest is not abstract, it's real, and it's growing. This is the reality our economy is contending with. Consumer spending is shrinking. Small businesses are struggling. And economic growth has slowed to a crawl, just 1% expected this year, after barely managing 0.6% in 2024. So, what can be done? Samuel Seeff, chair of the Seeff Property Group, has called on the South African Reserve Bank's Monetary Policy Committee (MPC) to cut interest rates by at least 50 basis points. He's not wrong. The economy needs a boost, and monetary policy can play a pivotal role. Inflation is well under control, sitting at 2.7% in March, comfortably below the Bank's target range. Yet interest rates remain stubbornly high, even above pre-Covid levels. In this context, high interest rates are doing more harm than good. They're dampening economic activity, holding back investment, and making it harder for ordinary South Africans to make ends meet. Bond repayments are higher. Credit is more expensive. The property market remains subdued, with FNB noting sales volumes are still lagging behind pre-pandemic levels. When consumers have less to spend, small businesses, from spaza shops to family-run restaurants, feel the pinch. A rate cut, on the other hand, could help unlock growth. It would reduce borrowing costs, giving households some breathing room. Consumer spending, which makes up around 60% of our GDP, could recover. Small and medium-sized businesses could access more affordable finance to invest and hire. The property sector could bounce back, historical trends show that a 50 basis point cut could lift property transactions by 10-15%. This would benefit construction too, a sector that absorbs large numbers of low-skilled workers. Crucially, such a move would signal confidence and commitment to economic recovery, both to local investors and international partners. It would show that we're serious about growth, job creation, and improving living standards. Other central banks are already responding to similar global conditions. The Bank of England and the European Central Bank have trimmed rates by 25 basis points. The US Federal Reserve is holding steady despite global uncertainties. South Africa's real interest rate, our rate minus inflation, is among the highest in the world. It's not just uncompetitive, it's counterproductive. The Reserve Bank's continued caution no longer seems justified. Inflation is in check, and the global outlook is improving. Now is the time for decisive action. If the MPC fails to act, the costs will mount. We could see unemployment rise by the end of the year. Household debt is already high, sitting at around 62% of income, and could worsen. Inequality, one of our most entrenched challenges, will deepen. And faith in the country's economic future will continue to erode. A 50 basis point rate cut isn't reckless, it's necessary. It's a step toward giving South Africans a fair shot at recovery, dignity, and hope. It's time to act, before the damage becomes irreversible. * Maleke is the editor of Personal Finance. PERSONAL FINANCE
The Citizen
16-05-2025
- Business
- The Citizen
Unemployment, low growth crises demand bold action
Given the alarming increase in unemployment announced this week, Samuel Seeff, chairperson of the Seeff Property Group has issued a strong call to the South African Reserve Bank's Monetary Policy Committee (MPC) to implement a significant interest rate cut of at least 50bps at its upcoming meeting. The latest unemployment figures paint a stark reality as another 237,000 South Africans lost their jobs in the first quarter with unemployment now at 32.9% (up from 31.9%). Some 8.2 million people are now unemployed, and on the expanded definition it stands at 12.7 million (43.1%). This is further exacerbated by the IMF and Moody's recently downgrading South Africa's economic growth outlook for the year to around 1% at best, after growing at just 0.6% last year. The continued economic stagnation and rising unemployment is simply untenable, says Seeff. The risks to the stability of South Africa far outweigh the Reserve Bank's overly cautious approach to inflation concerns, especially since inflation has trended around the bottom of the Reserve Bank's target range since late last year, falling to just 2.7% for March. This is below the target range. The interest rate is still 100-basis points higher compared to the pre-Covid rate while the economy is stuttering and shedding jobs at an alarming rate. It should be noted too that the gap between the interest rate and inflation in South Africa is among the highest in the world, stifling growth. Seeff says the prolonged period of high interest rates has demonstrably hampered economic growth and placed significant strain on the economy and property market. The recent marginal rate cuts have now proven insufficient to stimulate meaningful recovery within the property market with FNB recently reporting that sales volumes are still below pre-pandemic levels. We have recently seen the Bank of England and the European Central Banks cut their rates by 25bps. While the US Fed kept its rates unchanged, that was expected given the impact of the US-China trade war. On this front too, progress has been made with recent meetings between the US and China and a temporary tariff relief deal. That means the Bank's primary justification for maintaining high interest rates have now diminished, says Seeff. Inflation is below the target range, the global economy is settling, VAT has been scrapped, and after some volatility, the Rand has stabilised. There is therefore no reason for the Bank not to step in with a meaningful rate cut of at least 50bps. South Africa can no longer wait, the time for action is now. Issued by Gina Meintjes
IOL News
15-05-2025
- Business
- IOL News
Urgent call for 50bps interest rate cut by SARB: Impact on South Africa's property market
'Some 8.2 million people are now unemployed, and on the expanded definition it stands at 12.7 million (43.1%),' Seeff said. Samuel Seeff, chairman of the Seeff Property Group, has issued this call following the latest unemployment figures, which he said painted a stark reality as another 237 000 South Africans lost their jobs in the first quarter, with unemployment now at 32.9% (up from 31.9%). There are strong calls for the South African Reserve Bank's (SARB) Monetary Policy Committee (MPC) to implement a significant interest rate cut of at least 50bps at its upcoming meeting. The property group said this is further exacerbated by the IMF and Moody's recently downgrading South Africa's economic growth outlook for the year to around 1% at best, after growing at just 0.6% last year. The continued economic stagnation and rising unemployment are simply untenable, says Seeff. It said the risks to the stability of South Africa far outweigh the Reserve Bank's overly cautious approach to inflation concerns, especially since inflation has trended around the bottom of the Reserve Bank's target range since late last year, falling to just 2.7% for March. It said this is below the target range. The real estate company said the interest rate is still 100-basis points higher compared to the pre-Covid rate while the economy is stuttering and shedding jobs at an alarming rate. It should be noted too that the gap between the interest rate and inflation in South Africa is among the highest in the world, stifling growth, it added. Seeff says the prolonged period of high interest rates has demonstrably hampered economic growth and placed significant strain on the economy and property market. 'The recent marginal rate cuts have now proven insufficient to stimulate meaningful recovery within the property market, with FNB recently reporting that sales volumes are still below pre-pandemic levels. 'We have recently seen the Bank of England and the European Central Bank cut their rates by 25bps. While the US Fed kept its rates unchanged, that was expected given the impact of the US-China trade war. On this front too, progress has been made with recent meetings between the US and China and a temporary tariff relief deal.' Seeff said that means the bank's primary justification for maintaining high interest rates has now diminished. He said inflation is below the target range, the global economy is settling, VAT has been scrapped, and after some volatility, the rand has stabilised. 'There is therefore no reason for the bank not to step in with a meaningful rate cut of at least 50bps. South Africa can no longer wait; the time for action is now,' Seeff said.
