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.
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.
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