Investing in property? Now is the perfect time!
Category News
As a result of recent cuts to the repo rate, the interest rates are currently lower than they have been in over 50 years, with even more cuts expected in the coming months as part of the government's effort to stimulate the economy.
This combined with the increased volume of home loans being approved as reported by BetterBond, the property market has become considerably favourable towards buyers.
In practical terms, this means that as a buyer, you will be more likely to qualify for a home loan if you didn't before, and that you'll qualify for more credit on your current salary than what you previously would have. In addition to all of that you will also have lower monthly repayments.
This is particularly incentivising for first time buyers looking to enter the market, as for many it is now cheaper to pay off a bond rather than rent. Additionally, homes that sell for R900 000 or less are exempt from transfer duties, while buyers buying higher value homes are also paying considerably less in transfer fees.
With the increased activity in the entry-mid level property market, there is also great opportunity for investors looking to expand their property portfolios, especially in the extreme high-end property sector. Reduced market activity in the super luxury home market means that these sellers will need to price their properties competitively.
For foreign investors bargains abound as depreciation of the Rand has resulted in super luxury property prices being up to 30% lower than they were in 2018 for those paying in Dollars, Pounds or Euros.
While market conditions undoubtedly favour buyers, sellers needn't be worried about choosing now to list their properties either, especially in the mid-price property bracket. With a larger number of potential buyers all with increased buying power, combined with people having a lot more free time on their hands, online browsing has increased considerably. In these conditions, an attractive home at a fair and market-relevant price is sure to attract offers. A skilled real estate agent will be able to guide you deftly through this buyer's market.
For any queries or questions, contact us today on 041 581 1744 or email info@homeandhectare.com and let our friendly team of expert Property Specialists help you.
Author: Home & Hectare
