select
|

South Africans assess all financial implications before making home buying decisions

South Africans are adopting a practical approach to buying homes in 2015 - they are taking the time to consider the financial advantages and disadvantages of buying, moving or renovating their properties, according to Standard Bank.

Despite the challenging economic conditions that prevailed during 2014 extending into 2015, there is a growing interest in home purchases, indicating that the residential market is strong.

“However, buyers are carefully evaluating all the costs involved before taking the major step of acquiring their first home, moving into a new home or moving up the property ladder,” says Steven Barker, Head of Home Loans at Standard Bank.

Ultimately, Standard Bank customers are making buying decisions only after weighing several factors.

They include:  

- Examining the transfer and legal costs involved in buying a property.
- Considering municipal rates, taxes and sectional title levies in their ‘affordability’ calculations.
- Assessing the cost of moving households.
- The implications of making physical changes to a new home.
- Buying furniture and fittings for a new home.
- Comparing the maintenance costs of established homes in the suburbs versus higher density townhouse complexes.   - Weighing the advantages of buying a newly built home or an old existing home.

“Where these costs are considered to be excessive and outweigh the advantages of moving in the eyes of potential buyers, many customers opt to apply for finance to improve their properties by renovating or building additions,” says Mr Barker.

“Prices obtained in established suburbs generally weathered the downturn well, with property values exceeding inflation during 2014. They will probably continue this performance throughout 2015. As is to be expected in the current economic environment, the majority of interest is being displayed in homes that are well-located and close to the amenities that customers require.

We expect the trend of first time home buyers to continue as interest rates are still low enough to encourage people to take their first step onto the property ladder.

“Further activity can be anticipated in this arena as the market develops during the year,” says Mr Barker. “South Africans continue to place a high value on home ownership. Secure tenure and ownership are becoming increasingly important and will bolster activity in the residential sector of the property market for some time to come.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    • 21 Feb 2018
      These days most buyers are using online property portals like Private Property when house hunting due to the convenience, up to date information and variety on offer. “The property portals have revolutionised the way buyers shop, but they do need to be cautious – viewing photos online is no replacement for viewing the property in person,” says Bruce Swain, CEO of Leapfrog Property Group.
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK