select
|

Mixed market the ‘chance of a lifetime’ for young buyers

So says Clarry Lesch, owner of the local Lew Geffen Sotheby’s International Realty franchise, who notes: “The Port Elizabeth market is a tale of mixed fortunes at the moment and this is creating many exceptional opportunities for homebuyers.

“For example, many existing homeowners here are very keen to downscale their lifestyles in order to curb expenditure or reduce debt, and they are increasingly inclined to negotiate their asking price and even to accept less than they paid for their property (especially if they bought in 2007 or 2008) just to be rid of it and free to get their own finances on track.

“Consequently, this is a very good time for first-time buyers to be looking for ‘bargains’. Indeed, if they can put down a good deposit now, they may well find that their monthly bond repayment would be the same or even less than what they are currently paying in rent.”

In addition, she says, there are still many distressed properties coming on to the market as their owners deal with the ‘second wave’ of financial problems following the recession, “and we expect this to continue for the next 18 to 24 months, which we believe will be an exceptional window of opportunity for prospective buyers to accumulate deposits and acquire homes of their own”.

After that, Lesch says, the surplus supply of homes on the market will pretty much have been absorbed and prices will be under upward pressure once more. “Interest rates will likely also be higher by then and it will be more difficult for young people to qualify for loans, even if they do have deposits.

“In short, it is likely to be a very long time before young prospective buyers will again experience the extremely favourable combination of buying conditions that currently prevail, and they should do their utmost to take advantage of them.”

Meanwhile she says, the rental market in Port Elizabeth is enjoying unprecedented strength, with high demand and a shortage of stock that does not seem set to be relieved any time soon because there are virtually no new rental units being developed.

“Vacancy levels are thus extremely low and with interest rates at their current lows, rentals now quite often cover and even exceed the landlord’s monthly bond repayments on rental properties. This is obviously good news for property investors – and for existing homeowners who are able to convert part of their home or build on a flat or two that they can let out to help cover their own expenses.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    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