select
|

Four tips for first time buyers

While residential properties at the upper end of the market may not be selling as quickly, there are a number of hotspot areas and price brackets that are doing brisk business throughout South Africa.



First time buyers looking to purchase within the R1,2 to R2,5 million brackets will quickly find that it’s a seller’s market at the moment. “Almost across the country we’re finding that properties in this market segment are flying; agents have reported stories of properties being on the market for as little as a day,” shares Bruce Swain, CEO of Leapfrog Property Group.
 
One area where this is particularly noticeable is the Western Cape and Les Friedman from Leapfrog Property Group Milnerton, has a few good tips for buyers looking to enter property market.
 
Don’t procrastinate
 
“Accurately priced properties in high-demand areas like Milnerton and Table View are selling quickly so if you like it, buy it,” advises Friedman, “The days when buyers could mull over a property purchase are gone – at least in the sought-after areas and price brackets – and sellers know they have options.”

Naturally buyers can only act quickly if they’re prepared which leads to the second tip:
 
Do your homework
 
It’s imperative for buyers to do their research – knowing which areas they want to buy in and what they’re willing to pay. “The old adage of buying the worst house in the best neighbourhood is still true – buyers need to know what properties in an area are worth so that they can calculate whether a fixer-upper is a worthwhile investment or not,” says Friedman.
 
Come prepared
 
These days buyers need to have pre-approval for a bond if they’re to be taken seriously. Friedman explains that; “Cash offers are also welcome, but in today’s economic climate most buyers will need financing. It really counts in a buyer’s favour if the agent and seller can see that they can afford to make an offer. Sellers may also give preference to a buyer with a lower offer, but secured financing, over a higher offer from a wildcard”.

Friedman adds that the banks are sticky with bonds at the moment and have a lower appetite for risk when granting bonds. She advises purchasers to keep their scoring at the banks high by managing their accounts well and not being over exposed (i.e. having too much debt).
 
Work with a reputable agent
 

In a fast market it can seem that a buyer is always just too late, but working with an experienced agent who knows what stock is on the market can make the task a lot less frustrating; “An agent who’s well entrenched in the area will know what stock is coming on to the market and will be able to guide buyers in terms of their needs and pricing,” Friedman advises, “It helps having a professional on your side who’s actively searching for properties matching your criteria, and who can help negotiate the sale with the seller.”
 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    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