select
|

Today’s first-time buyers plan carefully for the future

Although the real estate market has seen many changes over the recent years, one thing that hasn’t changed is the fact that first-time buyers are an intricate part of the housing market globally, says Adrian Goslett, CEO of RE/MAX of Southern Africa.

Goslett points out that First National Bank’s property figures show that the number of first-time buyers has increased and now account for nine out of 10 buyers in the affordable housing sector. Goslett says that because first-time buyers are such an important part of the market, it is vital to know what they are looking for in a property. He notes that while affordability is a key factor for most, many are looking for homes that are close their workplace and amenities as well as proximate to major transport routes. Some first-time buyers also want homes that are large enough for them to be able to expand their family at a later stage.

“More and more first-time buyers are gaining confidence in property as an investment and are eager to get their foot on the first rung of the ladder. Sentiment seems to be continually improving and consumers are once again excited about the housing market. Many have realised that housing prices are only going to increase from this point and they understand just how incredibly low the current interest rates are. Homeownership over the long term is viewed as an excellent way to provide stability, build up equity and formulate a solid financial plan for the future,” says Goslett.

Today’s first time buyers plan carefully, and are specific in what they require from a property. Goslett points out some factors that are becoming more and more important to a growing number of first time buyers:

Room to breathe

With a long term plan in mind, many first-time buyers are opting for slightly larger homes that fall within their budget so that they don’t have to move when their life stage changes.  “It is recommended that a buyer purchase a home that will suit their needs for at least the next five to seven years if possible, as this will allow them to pay down their bond enough to make a profit when they sell the property. For this reason, even if a bigger family may not be an option immediately, it is still important that it is considered when looking at property. A versatile home will provide a sense of stability rather than become a burden when life changes,” says Goslett.
He notes that thanks to the vast amount of information at their fingertips, today’s first-time home buyers are a savvy bunch that understand the importance of buying a home that they can settle into for a longer period. With the recession bringing housing prices to a more affordable level, it has also become easier for first-time buyers to get into larger homes than they were in the past. However, today’s first-time buyers are realistic in terms of what they need and are more budget-conscious, looking for homes that will meet their future plans and allow for growth without putting them in financial danger.

There are also those first time buyers who would rather purchase a smaller sectional title unit that is easy to maintain. These buyers are often looking for a good investment property that they have the option of renting out for additional income instead of selling, if and when they need to move to a larger home. Location is an especially important factor to consider if this is part of the buyer’s future plan.

Location

While location is a vital aspect for any property buyer to consider, Goslett says that first-time buyers are putting a lot of emphasis on a property’s location and its proximity to business hubs, shopping centres, schools and entertainment facilities.

“The myriad real estate information available has allowed first-time buyers the opportunity to see how vital location is in terms of return on investment over the long term. Location is one of the single most important factors because of how dramatically it can impact on a property’s potential for appreciation.  In addition, location is also a consideration because of lifestyle offerings. If a buyer is planning to stay in a property for a long period of time, they want to be happy in the area,” says Goslett.

The right market

Irrespective of the features that today’s first-time buyers are looking for - the current market is perfect for them. Goslett says that affordable levels of house prices along with low interest rates have opened up opportunities in the market for first-time buyers who were previously unable to afford to purchase property. He notes that these factors make owning a property a much more attractive option than renting, especially considering the fact that the ever-growing rental demand is pushing rental prices up.
“If a buyer is in a financial position to purchase a home, why wouldn’t they?” he asks. “There seems to be no reason to continue paying rent, and paying off someone else’s bond, when market conditions are ideal for buying a first home,” 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