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10 Reasons Why 2020 is Your Year to Buy a Property

  • Latest News
  • February 4, 2020
10 Reasons Why 2020 is Your Year to Buy a Property
  1. It is currently easier to get a home loan. “The banks are competing heavily with each other to get new buyers’ business” says Shaun Rademeyer from Multinet Home loans, “there is a 5% increase in the conversion of the home loan application rate”.
  2. Depending on the applicant’s current financial credibility, some banks are approving up to 105% home loans.
  3. It’s a buyers’ market! You’ve probably heard this phrase so many times over the past few months, but what does this mean? Due to an oversupply of properties on the market, and the slow economy that causes consumers to be more cautious when they decide to spend, home buyers can pick and choose from properties currently on the market.
  4. There are a lot of properties available in the ‘Affordable Market’. What is the Affordable Market you ask? According to a property investor, Anton Breytenbach, properties priced between R500k and R1.5 million are in the ‘sweet spot’ when buying property. There are many more buyers and renters who can afford property in this price bracket than buyers in the high-end property bracket (R3.5 million and higher). This means that if you choose to buy a property to rent out, you should be able to attract a qualifying tenant quicker.
  5. There is more space to negotiate a good price for a property, especially when you find a home where the seller is motivated to sell urgently.
  6. Interest rates are at its at the lowest they have been since 2014. Homeowners should consider the benefits of paying off their home loans faster, simply by paying just a bit more on their home loan each month.
  7. Property increases in value. Unlike a car that loses its value over time, property slowly but surely grows in value. Property is a good and more secure capital investment.
  8. Location, location, location! Look for an area where there is an active first-time buyers’ market. First time buyers invest in areas where they feel secure, they usually plan to stay in that area for the next 7 – 14 years making your investment set for long-term growth. With many first-time buyers in the market, it won’t be difficult to pick up which area is the best fit for you.
  9. If the price is right… “If you do your homework thoroughly before buying a property, and you buy it in the right area at the right price, the value of your property will grow so much faster when the economy starts picking up again”, says MJ Dafel, COO of Property.CoZa. “Buy a property below market value. The total price including the costs and fees of the sale should be below market value”. There are many affordable properties on the market now. Get into gear and start searching!
  10. Buying property forces you to save. Are you one of those people that earn a salary, spend the whole month and whatever is left at the end of the month goes into your savings account? By investing your money into a property, you will be encouraged to save, and your savings will grow in value over a long period. It’s a win-win situation!

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