select
|

‘Now is the best time to secure home loans’

The year is starting with strong indications that the economic emergency measures taken last year have by and large been successful.
 
“And yet caution still prevails,” says Martin Schultheiss, CEO of Harcourts Africa, “with economists divided on the sustainability of the recovery and the prospects for economic growth in 2010.
 
“Which is of course good news for serious homebuyers and property investors, because as long as there is this uncertainty, central banks will tend to keep interest rates down and make it easier to afford new purchases and easier to qualify for home loans.
 
“Once the world economy does return to higher growth rates, we are likely to see the banks start raising rates again to curb inflation, which will of course put limits on the buying opportunities that are currently evident – and limit the chance for consumers to benefit from the expected 25% to 30% increase in property values over the next three years.”
 
As for the property market itself, Schultheiss foresees the following in the year ahead:
 
* Interest rates are currently at a 28-year low and unlikely to drop much further. In fact they will probably start to rise again at the end of the year. The next few months will thus be the best time for homebuyers to obtain loans, and could be a good time for existing borrowers to fix their rates.
  
* Affordability of property should increase steadily this year as consumers continue to pay down debt and salaries start to increase in line with greater economic growth.
 
* Population growth, economic empowerment and increasing prosperity will also stimulate demand among owner-buyers in established markets. However, stringent home loan qualification criteria will ensure that the rental market stays active and strong, and this will encourage investment.
 
* New residential property markets will continue to be opened up by mining and industrial ventures, tourism and infrastructural development, and activity will be less concentrated in the main metropoles. Some speculation is likely to be evident in these new markets.
 
 
* Security and personal safety will remain major purchase considerations and an increasing percentage of buyers are likely to choose homes in gated villages and estates. This will emphasise the importance of good legislation to regulate sectional title and / or community living and resolve disputes quickly and cheaply.
 
* Both buyers and sellers will increasingly expect and demand outstanding service from agents, and the real estate industry will have to invest heavily in more and better training as well as more user-friendly websites.
 
*At the same time, transformation will be top of mind within the industry and it will become more representative, with an increasing number of black agents operating in the mainstream and not just in the former townships.
 
 
ISSUED BY HARCOURTS AFRICA
FOR FURTHER INFORMATION CALL


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
    • 12 Jan 2018
      After an exceptionally good 2016 during which the Winelands residential market outperformed the national average by a considerable margin, 2017 was marked by a difficult winter which saw a notable slump in sales and demand.
    • 12 Jan 2018
      Small spaces can make a big impact. Irrespective of size, an aesthetically pleasing outdoor space can be a major selling point for prospective buyers. “Even if the outdoor area is small and only enough to sit and have a cup of coffee, it might just be the feature that makes the stand out from others in the neighbourhood,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 12 Jan 2018
      The boom of the digital age has opened up many doors to the way we buy and sell property. In the past we used to pop out and pick up the latest copy of the property magazines available, today we switch on the PC or grab our smart phones as online property portals & Facebook has become the new ‘go-to’ for anything, including shopping for your new home from the comfort of your couch.
        
    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