Interest Rates to climb again soon

Interest Rates to climb another 2% at least this year in Namibia, before we see a slow down.

The current prime interest rate lies at 15,25%, whilst the Bank Rate is at 10,25%.

We are expecting an announcement by the Bank of Namibia this week still on the interest rate situation, but most probably we shall see an increase to at least 15,75%. This will definitely affect our business, which is difficult enough as it is, with high inflation causing people to buy less, as they can afford less. This will obviously also cause problems for many people in terms of their monthly repayment, with a lot of people already putting their houses on the market, we will see a definite increase in the next few months.

Now, this means that we have or will have a buyers market, where people most probably have to sell, and with buyers being able to take their time and have a good look around and then make an offer lower than the asking price, leaving the Seller with not much of a choice but to accept this or face the risk of loosing his house.

Currently, we are not yet seeing so much of a buyers market, with Sellers still clinging to their high prices, wanting more than the market valuation.

Buyers are very conscious of valuations and are usually not prepared to pay more than the market valuation, so if you are considering selling your property in these times, go and get at least one or two valuations by either your bank/s or independent valuators (who usually tend to be better informed and qualified than your average bank valuator).