Step 1 : Why buy now ?
Why Invest Now ?
Navigating a Buyers ’ Market
There was never a better time to purchase property than right now . The conditions are favourable and according to BetterBond , there has been a significant uptick in home loan approvals , making it the ideal time for potential buyers to purchase , especially first-time buyers . Furthermore , the interest rates are the lowest they have ever been in 50 years , transfer duties do not apply for homes that are R1 million or less , there is an oversupply of new builds and banks are competing for business . Bearing all this in mind , it is safe to conclude that it is , in fact , a buyers ’ market .
UPTICK IN CONDITIONS
Transfer duty
As mentioned , if you are purchasing a property for R1 million or less , you will be exempt from transfer duty . This is especially advantageous for first-time buyers
Buyers who are wanting to purchase for more than R1 million will also get some relief . For example , a consumer who purchases a house valued at R2.5 million would have a saving of R17 000 in transfer fees .
Interest & lending rates
Due to COVID-19 , we have experienced four major repo rate cuts this year . As a result , the interest rate of 3.75 % is the lowest it has been for the past 50 years .
The repo rate cuts have led to the prime lending rate being favourably low at 7.25 % which means that as a buyer , you will be getting “ more credit for your affordability .” Liz Botha , Home Loan Specialist at BetterBond explains that “ because the lending rate is so low , you will be able to qualify for more credit with the same salary and your repayments will be significantly lower .”
If you are looking to purchase property , whether it be for the first time or if you ’ re building your portfolio , it ’ s imperative that you are aware of how to navigate this current market . With the economy being the way it is , due to COVID-19 , buyers and sellers alike are weary of making any big financial decisions , however , it ’ s essential to ‘’ strike while the iron is hot ’’ and if you have a competent and highly-skilled agent on your side , you can rest assured that you are in good hands .
Purchasing property in a buyers ’ market should be a walk in the park , however , it does not come without its challenges , says Greeff . One of the main advantages of buying in this market is the fact that you are spoiled for choice and now , you have just a little bit more time to do your homework and find just what it is that you are looking for . But it ’ s important to note that although it is a buyers ’ market and you have a bit more negotiating power , an attractive home at a fair market-related price , will always attract offers so the competition is still fairly stiff .
What does a buyers ’ market mean for sellers ?
Selling your home during a buyers ’ market needn ’ t be a negative experience . If you are armed with a well-trained agent , market-related pricing , and excellent marketing , selling your home should be a breeze .
It ’ s important your property stand out of the crowd . Ensuring that your home is priced well and that it is being marketed to its full potential is essential , but so is excellent photography , engaging descriptions , and successful show houses ( whether it be physical viewings or a virtual walk-through ). This is where a reputable agency is your strongest asset as they can ensure that you get the full package and that your property is given the best possible chance at being sold .
In challenging market conditions , the agent you choose can make all the difference to your sale . When choosing your agent , use a comparative market analysis to ensure that the recommended figures i . e . listing price , your agent is providing you with can be backed up .
Selling in the time of COVID-19
If you are thinking of listing your home , do not hesitate . With many South Africans having more time on their hands due to lockdown , there has been an increase in online browsing .
Some people are realising that their current homes no longer suit their current needs , while some may have decided that they no longer wish to rent . With COVID-19 being rife within in South Africa , many are adjusting their living situations and what they are looking for , may be what you have to offer .
The COVID-19 pandemic is constantly changing and evolving . The best thing sellers can do is to partner with an agent who has the backing of a well-established brand and a network of referrals that can be taken advantage of .
If you are in a position to buy a home , now is the time to do so . There is pride in home ownership and buying a home is one of the best financial investments you can make . Everything is working in your favour , as a buy , and there is no better time like the present .
Sources BetterBond , Greeff Christie ’ s International Real Estate
4 FIRST-TIME INVESTOR