select
|

The potential of property

Market conditions have opened up many opportunities for young first-time buyers, however, it is still important for buyers to follow certain guidelines in order to see the best return on their property investments, says Adrian Goslett, the CEO of RE/MAX of Southern Africa.

He notes that the sooner young buyers are able to get their foot into the property ownership door the better, provided of course that it is done in the correct manner. Rushing into a decision and purchasing a property without completing the necessary research or seeking the advice of an experienced property professional could prove costly down the line.

According to Goslett, regardless of the buyer’s age or the market they find themselves in, it is always important that they find the right property that fulfils their criteria. He says that younger consumers tend to look for property that is close to amenities such as restaurants, entertainment nodes or shopping malls because they are generally far more socially active than their older counterparts. “Most young buyers will opt for sectional title apartments due to the fact that they are normally less expensive than freestanding home and require less maintenance. These kinds of properties also offer the additional benefit of security.”

He says that aspects that buyers need to consider when looking for property that suits their needs and is likely to be a good long term investment are most importantly location, security features and lastly price.

“There is no doubt that there has never been a better time to invest in property. The last time that interest rate level was this low was over 30 years ago. This, coupled with current property pricing makes it the ideal time to purchase a home.  Even if property doesn’t appreciate in value over the short to medium term, it will definitely outstrip most other investment vehicles over the long term and provide a solid foundation for wealth creation,” says Goslett.

Although many young consumers are more interested in buying expensive cars and the latest electronic gadgets, Goslett says that these items will only lose value the older they get. Property will largely retain its value and if not appreciate in the years to come, provided that buyers have done their research thoroughly. Young executives or graduates that have some money saved up for a deposit would be wise to use that money to invest in property while the market is ripe with opportunity. “The recession period may have made many hesitate to purchase property, however, the pros to owning property will always far outweigh the benefits of buying other big ticket items that are likely to depreciate in value,” he says.

According to Goslett, there are a number of reasons to take the step forward to home ownership, such as:

•       Paying off your own bond and not someone else’s
•       No need to always be moving because the lease has run out
•       Renovating, modifying or decorating to your own taste
•       Money spent on renovation or upgrades can be largely recouped on sale
•       Having a say in how the scheme is run in a sectional title complex
•       No annual rent increases

“Many young buyers might be considering waiting to buy property when they are in a different life stage or ready to settle down, but waiting it out could mean losing out on the buyer’s market we are experiencing at the moment. Some regions are already experiencing a shock shortage as demand for property increases. If buyers continue to hang back the market could turn before they invest and this dream could drift further out of reach at a later stage,” Goslett concludes.



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 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.
        
    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