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 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    • 21 Nov 2017
      When an offer to purchase a property is signed by both buyer and seller, this constitutes a binding agreement or “Deed of Sale” between the two parties. However, in most cases the “standard contract” might not be enough to cover all the specifics pertaining to the sale. The agreement may require some additions or alterations to clauses, which needs an expert hand in the drafting of such
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
        
    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