Is now the right time to buy?
The series of interest rate increases that South Africans have witnessed this year has deterred some would-be homeowners from signing on the dotted line and making the transition to homeownership.
Despite the higher costs, the current market offers considerable benefits when choosing homeownership in South Africa. Jawitz Properties is ready to provide the lowdown - and some real tips on how to buy a home within your budget.
South Africa is still a buyers' market
Due to the increasing number of properties on the market, South Africa is a buyers' market, which means that sellers typically become more open to negotiation within reason.
Over and above this, experts believe that the current cycle of interest rate hikes has either reached its end or is extremely near its end. This means that the pressure currently being experienced by homeowners should soon start to ease off.
Buy-to-let investments are proving lucrative
With the return to office work policies, we have noted a demand for rental properties in South Africa's hubs like Johannesburg, Cape Town and Durban. Property investors have an opportunity to rent out their properties in these hubs - especially if they are in sectional title developments or estates that boast state-of-the-art facilities that are appealing to millennial buyers.
A long-term investment in your family's future
Even if the interest rate necessitates some belt tightening to make ends meet, the fact remains that if you are a homeowner, you're working towards paying off an investment that will one day be your own. While your home loan repayments will fluctuate with the interest rate, it's also worth remembering that as a homeowner, you won't be faced with annual rental increases.
Advice and guidance when buying property in South Africa
- When buying your property, use a bond originator like ooba to ensure that you get the best possible deal. The lower the interest rate you are granted, the less you'll have to worry if the rate increases.
- Use our handy array of calculators to work out how much your bond repayments will be - and make sure there's room in your budget for this to rise a little if the interest rate rises.
- Have a deposit saved up before you buy a property. This will not only reduce the loan amount and lead to lower instalments but will also encourage banks to give you a subprime interest rate.
If you are looking to buy, our real experience has shown us that property is still a solid investment for those seeking a long-term commitment.
Whatever the interest rate happens to be when you decide to buy property, the most important strategy you can follow is to enlist the help of a knowledgeable property practitioner. With decades of experience in helping South Africans invest in property, the Jawitz Properties team is here to help. Get in touch today.