Further interest rate hikes threaten

rate hikes effected on November ʹ͸ by the entral ank of swatini ȋ ) are ͸.hͷephreartvecisennghtafvnreoamindvc͸reeprsederecedeffnbetyc. tͷoͲnbhaosmis epowinntesrtso.

NTEREST

any households have been seeing increases of several thousand malangeni per month gradually creeping up on their monthly mortgage installments over the past year or so. he biggest bimanpdasctaonfdthfiershti-kteims heabvueybeeresn. on the lower price

Interest rate hikes show no signs of slowing down and we chat to Anthony c uire, Licensee for Seeff swatini, about the impact this has on theheslwataetsint iͲr.͹eͷalpeesrtactenmt ianrtkeerte.st rate increase could be a sign of bigger hikes to come. c uire reports that this is particularly concerning for the real estate market.

Interest rate hikes show no signs of slowing down and Seeff takes a look at the impact on the swatini real estate market.

onsumers are feeling the pinch from the higher-than-expected interest rate hike, which they

The impact of interest rate hikes

must now absorb on top of food, fuel and living costs. Unsurprisingly, this has a domino effect on mahniysiinsdcuosntcrieersn,irnegalseinstcaeteaninacclutidvedr.eal estate market is vital to the economyǯs health. Interest rate hikes will not only hurt property transaction thime enupmerbioerdo),f bpurot pimerptiaecstsporldopweirthtyivnolaumspeescȋiif.iec. taxes such as transfer duties, stamp duties, rates and taxes, etc.

Inflation is the problem, but hiking the interest

What is the reason for these interest rate rates is far from the solution. In this case, a

increases?

high-interest rate is not enough to fight inflation.

ecause the interest rate hikes we are currently experiencing are not a result of demand-driven

Why not?

inflation, as some might assume, but rather imported inflation. Imported inflation is a price by the increased cost of importeindcpreraosdeucatsu.sed tpiroinceis acnaudstehdebRyuessxitae-rUnkarlafiancetoIrms,psourcthedasinoflial

ar. he correct policies must be implemented to control imported inflation and avoid further interest rate hikes.

he historically low rates of ʹͲʹͲ and ʹͲʹ1 impacted the residential real estate market

Interest rates over previous years

positively.

According to Seeff, a benefit of this low-interest rate is that it gave more home buyers an opportuHnoitwyetovepru, trhchisasoevehroamlleisn.crease in properties sold was not as high as you might have expected. Iant prsiwmaetipnliuws eassmawuclehnadsetrws o fpfericnegnmt aonrdtgeavgens more during this period which to a large extent negated the benefits of lower interest rates.

he latest interest rate increases are hitting

Ithose buyers hard in the pocket, with many inpcerreamsoens tohf gseravderuaallltyhocureseanpdinogfupmoanslaeneginegn their monthly mortgage installments over the pasthyileatrhoerisnot.erest rate hikes are impacting trreacnosnascidtieornpvuorlcuhmaesisnagntdhefoir cdirnegahmohmoembue,yreernsttaol markets are recovering somewhat post- iIsDp-1e9r.foNromtainbglewthelel lcuoxmuprya redaltoesʹtaͲtʹeͲmȀʹaͲrkʹe1t, drawheincgolrorceacltapnodlincitesrnmatuiosnt ableteimnapnltesm. ented to control imported inflation and avoid further ientceoruesrat greatceahreikfuesl caonndsSideerfaf twioonulbdesfotroenagnly furothr ethrohsiekewsh. o are still hoping to enter the market, rising interest rates should not deter them. A wa seollu-tnhdouingvhetsotmuternetadl ecsitsaitoenpaunrdchiansteriessatlwraatyes will eventually stabilise again. thehesosonoenreryoyouuwairlel babelneetfoitefnrtoemr tohwe nmianrgkaetn, afuptpurecwiaetainltghǨasset that can help you generate

Beautiful white colour single family home with big green grass yard, large tree and roses.