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
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us