When mortgage repayments increase, pressure is felt throughout the rental market.
Rising interest rates create financial pressure and legal complexity.
Defaults, distressed sales, landlord-tenant disputes and community scheme arrears happen when economic conditions tighten, and households run out of room, says Van Deventer Dowlath & Marx Inc.
At the end of last month, the South African Reserve Bank's SARB (Monetary Policy Committee) raised the prime overdraft rate to 10.5%, South Africa's Monetary Policy Committee has raised the prime overdraft rate to 10.5%, spelling a direct reduction in monthly cash flow for anyone repaying a home loan linked to the prime rate.
A legal practice says it worked closely with economist Dr Roelof Botha, who says the MPC moved away from an inflation target range of 3% to 6% and replaced it with a fixed point of 3%.
