Now is a near perfect time to buy property
The latest SA property and home loans news:
When it comes to investing, the basic rule to making a profit is to Buy-Low and Sell-high. If you were to apply this theory to property, you would be looking to purchase some real bargains right now and sell after at least 3 to 5 years. Early predictions are that property values could shoot up by 50% by 2011.
Many property and bond finance experts agree that, the market is nearing its lowest point currently. We should experience some interest rate cuts in the near future, followed by an upturn in property price growth.
The number of distressed sellers has grown rapidly, and a recent article in the Sunday Times highlighted that unpaid home loans have rocketed to nearly 100 000 since June. That’s up from 55000 only five months ago.
According to The Times, one of the country’s biggest auction houses, Alliance Group, has auctioned more than 1500 repossessed homes since January. This highlights the fact that there are many bargains to be found currently.
Meanwhile, a number of real estate agents in South Africa are reporting a sudden increase in activity. Despite high interest rates and tighter lending criteria, an increasing number of buyers are entering the market.
Also favouring the current timing, and this comes from a general consensus of the four major banks, is their expectations of house prices thumping upwards by between 50 to 60 percent by 2011.
Important:
Before you rush out to buy, remember investing in property is usually a long term plan, and managing a Home Loan is possibly the biggest financial commitment you’ll ever make.
Before, committing yourself to a 20-year bond, ensure that you are financially able to cope with possible further upward rate adjustments.
For more assistance with regards to Applying for Home Loan Finance contact one of our consultants.
Email: olen@propertyloans.co.za
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In Categories: Home Loan News, Interest Rates, Property News
Related Tags: Alliance Group, Interest Rates, Property News, Real Estate
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November 6th, 2008 at 5:32 am
I agree. Now is a really good time to invest in property, if you can weather the storm.
You can easily buy property at 15-20% below asking price and when the market turns, you’ll be in the money.
Great article and blog.
November 25th, 2008 at 10:26 pm
Seems that now is the time to buy….when there’s “blood in the streets” as they say. It’s important to have a solid realistic plan for your new acquisition which includes the exit strategy. How long you will keep it, how you will manage it and what you will do with it during ownership are just a few questions that need to answered. Plan for the worst and hope for the best!
November 27th, 2008 at 2:15 pm
I agree with content if you are able now is a good time to invest as there are signs the property slump is slowing and buying low now could work in your favour
May 20th, 2009 at 1:29 am
It is arguably a great time to buy property, and as others have pointed out, if you can weather the storm and stick to it for the long haul. Home ownership has out performed most other investment vehicles historically. I am looking at purchasing another property soon.
June 19th, 2009 at 10:55 pm
I’m glad to see we are getting a break right now in the decrees of the housing market. I don’t think we are done yet though. The job market is still dropping and I expect to see another housing drop also.
July 13th, 2009 at 7:49 am
We are far from the bottom of the slump. SA still needs to catch up to other markets in terms of the downturn. Buying now would leave you holding a property worth 20% less in a few months time…