Interest rates have recently increased from a record low of 3.5% in July of 2020 to the 7% at the end of November 2022.
South Africa’s benchmark repo rate increased by another 75 basis points to 7% at its November 2022 meeting. This is the 7th consecutive rate hike since policy normalization started in November 2021.
With such a steep increase in interest rates linked to already harsh economic conditions, the property market comes under increased pressure.
The number of properties for sale will increase, but with higher interest rates, these will not fetch the same high market values seen a year ago. At the same time the demand for rental properties is expected to increase. This will invariably place greater demand on rental agents and their ability to deal with the expectations of rental property owners and rental tenants.
One such requirement is accurate, up to date accounting that reflects the tenants financial position: what is due, what has been paid and what is the current balance. At the same time, owners expect accurate, up to date payment and accounting of all relevant transactions.
Dynamic provides such a fast, simple accounting solutions for rental property practitioners.
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