What R10 million gets you in major metros in South Africa
The South African Reserve Bank (SARB) has raised interest rate yet again, making it harder for indebted South Africans to pay off their bonds.
In light of the recent rate hike, an R10 million bond (20 years) at 11.75% would have to pay up to R108,371 a month – equating to R26,008,970 by the time the bond is paid off.
Greg Dart, a director at High Street Auctions, said that this decision by the Reserve Bank was unnerving as the increased rates follow the National Treasury’s dire economic outlook.
“The market was expecting 50 basis points, but the pressure it will place on consumers and the business sector is huge,” said Dart.
“Sadly, it also won’t be the last rate hike we’ll see this year because we’re snowballing. Lady Russia, Eskom, record currency lows, foreign investor confidence wiped out… these are big problems for which we don’t have solutions.”
Dart said the real estate market is likely to slow for the remainder of the year.
“But if we see an end to rate hikes in the first quarter of 2024, the market will pick up and in likelihood, gain greater momentum as the year progresses.
“Wealth creation is now in private hands,” Dart said.
Despite this, there are still wealthy South Africans willing to fork out millions to ensure they can secure the home of their dreams.
BusinessTech looked at what was available for R10 million in South Africa:
Pretoria
4 Bedroom House for Sale in Woodhill Golf Estate – R9,950,000
Johannesburg
3 Bedroom House for Sale in Houghton Estate – R9,900,000
Durban
5 Bedroom House for Sale in Morningside – R9,995,000
Cape Town
3 Bedroom House for Sale in Constantia – R10,000,000
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