ACQUIRING
To new beginnings
Acquiring your first investment property
Since the beginning of the lockdown in 2020, it has been widely said that this is the best time to buy or invest in property, especially for first home buyers who either buy to make great returns on investment or buy to own their residential property.
Before making what could possibly be the largest investment you’ ve ever made, it’ s important to consider the ins and outs of acquiring your first home purchase as that can have a huge effect on your returns.
Why Invest Now? Currently, there is a surplus of property for sale and because it is a buyers ' market, sellers are open to pricing more realistically and within the market value. Since the beginning of 2020, and largely due to COVID-19, we have experienced major repo rate cuts and because of this, 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 % which means that as a buyer, you will be getting‘’ more credit for your affordability’’, says Liz Botha, Home Loan Specialist at BetterBond.
The Benefits of
Investing in Property It’ s a well-known fact that property is the best investment one can make and the benefits of are endless. With well-chosen assets i. e. properties, investors can enjoy predictable cash flow, excellent return on investments, tax advantages, and diversification
Finding and Purchasing Your First Investment Property
Step 1: Decide How Much You Want to Spend on Your Investment It’ s important to be realistic about the size of investment you would like to make. Remember that if you are not going to purchase the property in cash, you will most likely need to get a home loan, therefore you need to know how much you qualify for. Once you know what you
22 APRIL 2021 SA Real Estate Investor Magazine