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