Why now is a good time to buy property

It has undoubtedly been a buyer’s market in South Africa for the past few years with excellent conditions for those wanting to invest in property, says Adrian Goslett, CEO of RE/MAX of Southern Africa.  

He notes there have been a number of opportunities for buyers since the recession, with higher numbers of inventory in the market and property prices in many areas becoming more affordable. However, with a growing number of sales transactions and some areas experiencing a lack of stock, the proverbial tables seem to be turning to suit sellers. This means that buyers who still want to take advantage of favourable conditions and pricing will need to move relatively quickly. Goslett give some reasons why now is a good time to purchase property:
Home prices are rising

“Conditions are still really good for buyers, but it is not likely to stay like this indefinitely, especially with house prices in many areas already at levels seen during the boom or higher. Although prices are only expected to grow by single digit percentages this year and possibly next, the fact still remains that they are indeed on an upward trend that is not likely to change. The rising prices are good for both sellers and buyers, as sellers will see higher profit margins and buyers will see the value of their home grow from day one,” says Goslett. 
He notes that as price is a significant consideration for buyers when purchasing a property, by taking the leap now, buyers are giving themselves the best chance to get their hands on a starter home or upgrade to something bigger.
Low interest rates and higher chance of bond approval

Another reason why now is currently a good time to purchase a property is the fact that interest rates are remarkably low and banks are relaxing their criteria and becoming marginally less risk averse. “The last time the interest rate was at its current level was over 30 years ago, which means that a large majority of potential homebuyers have never seen the interest rate this low in their lifetime,” says Goslett. “This, along with the fact that the percentage of loan application approvals has seen an increase, is an excellent reason for buyers to realise their aspirations of owning a home.”
Emerging new construction

With stronger demand in the market and inventory stocks depleting among existing homes, opportunity will re-emerge for the construction of more homes and developments, giving buyers further options. Buyers who are reluctant to participate in the current market will still see viable property options in the future, although potentially at a higher cost.
“When looking at the property market, it is important that buyers don’t just focus on what is happening now, but also look forward to what is likely to happen and the next phase of the market, which will help with the decision making process.  Regardless of what is happening in the market, historically real estate has proven to be a good investment for the long term and with good research and savvy choices, this can be everybody’s market,” Goslett concludes.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us