First-Time Investors Guide 2020 2020 - Page 5

Top 3 Reasons to Own your Own Property

Step 1 : Why buy now ?
Owning your own home , especially for the first time , is one of the best feelings you could ever experience , it ’ s a mixture of pride , excitement and accomplishment . Mike Greeff , CEO of Greeff Christie ’ s International Real Estate says here are several reasons why owning your own property is important , not only will it be your most valuable asset , but it is also a creation of wealth .
If you are an aspiring homeowner and you are comparing pros and cons to buying a home , keep reading . Below are the top three reasons why you should take that leap !

1

It ’ s a buyers ’ market
The COVID-19 pandemic has no doubt increased financial stress with many South Africans needing to take a salary cut or who were unfortunately retrenched , but because of COVID-19 and its effect on the economy , the South African housing market now offers some of the best buying conditions than it has in years . Now is the ideal time to purchase a home , especially for first-time buyers . The interest rates are the lowest they have ever been and the prime lending rate of 7.25 % makes the climate even more favourable for buyers to obtain a home loan .

2

Owning

3

One
Equity creation
your own home is an investment and is considered a form of saving , says Greeff . Over time you build up equity in a valuable asset i . e . your home , and as you continue to pay off your home loan , the amount you owe reduces and the value of your asset appreciates .
When buying a property , it ’ s important to consider your financial future . Purchasing property has long-term benefits as it not only grows your equity , as mentioned , but your wealth too and in turn , it provides you with a certain level of financial security .
Additionally , if you are disciplined in paying back your home loan it helps you to build a good credit record which increases your financial stability for future investments and purchases i . e . a car or capital for a new business .
Creative license
of the benefits to having your own home is that you can customise it to suit your lifestyle . If you want to renovate , it ’ s your prerogative – you don ’ t need to get permission from anyone . It ’ s easier to adapt your own home to your current needs and as those needs change , so can your home . For example , baby-proofing your home if you ’ re at that stage in life or converting the kids ’ bedrooms into an office or gym , if you ’ re empty-nesters . However , it is important to note that if you own a home on an estate or within in a complex , you may still need to get approval from the Body Corporate .
An added bonus is that certain improvements actually boost the value of your home , which in turn , boosts your personal wealth .
If you are in the financial position to buy property and if you are able to put down a sizable deposit , then you should consider taking the next step towards financial growth and security . There has not been a better time to purchase property and the long-term benefits are endless .
FIRST-TIME INVESTOR 5