Should I buy?
Category Buyer Information
Taking the exciting next step of investing in your soon-to-be forever home can seem overwhelming. With the intent to make the decision an informed one, Seeff Blouberg would like to make the process a little easier by guiding those looking to take the leap. Read along on some of the answers to the age-old question that is," Why should I buy?"
You can make it your own
Being in the fortunate position of owning your own property allows for your creativity to run as wild as your budget allows. With the exception of needing council approval on major external additions to the property, the property's design is up to your discretion. There are certain additions that can be made to a property that can in turn increase its value. With the effects of 2020, it has become common to see the South African workforce finding means to work from home. This has brought an increased interest in properties containing extra rooms and external granny flats with the intent to convert to office space. With interests and needs changing regularly, owning your own property allows for space to fulfill those wants and needs at any time. Be it a need for more privacy, or an addition to the family on the way, the space is yours and the ball is in your court.
It's not a purchase, it's an investment
With regular payments and adequate property maintenance, an investment property can be one of the safest investments to be made. Whilst the monthly bond payments are made, not only will the owner's credit score become considerably stronger but the property itself will increase in value. Should the structure itself decrease in value, remember that the land on which it was built has considerable value too. Licensed professional property practitioners are invaluable in the process of finding your investment properties. With the help of skilled mortgage originators such as OOBA alongside the real estate specialist of your choice, finding the correct investment property can seem effortless. Ensuring you are investing in a property with potential for appreciation, in tandem with a bond that is suitable to you, is essential.
The market is favourable
To everyone's surprise, the effects of the worldwide COVID-19 pandemic were not all negative. With the world doing its best to cope and recover from the negative effects of the pandemic, the South African property market has been rife with activity. This is due to the repo rate cuts that were introduced by the SARB (South African Reserve Bank) in March, April, May, and July of 2020. These cuts have given many people the opportunity to reevaluate their affordability based on the record low 7% prime interest rate, the lowest it has been in the last 5 decades. These rates have resulted in property practitioners taking on an abundance of inquiries by first-time buyers. The R2 Million and below property market seems to be flooded by not only first-time buyers but also those looking to expand on their current portfolio.
For those looking to invest, sooner would be better than later, with caution. Do your research and look at the area in which you are buying. Is it within the budget you have available to you? Look at the tenants in the area you are looking to buy in. Are they good tenants? Are you buying in an area with room for growth? Are you buying your forever home or buying to rent? Will your rental income cover the bond? How much are you prequalified for? Do you have a qualified real estate practitioner by your side? If you are able to take the leap and get your investment property pre-mid-2021, your property should see a huge increase in value as early as the third quarter of 2022. As of now, the market is seeing a shortage of stock for all these first-time buyers. The consensus for the market is that this trend will continue as long as mid-2022 delivering us into prime selling conditions. With an abundance of buyers and lack of stock, 2022 projects seller's property having a massive increase in value due to exponential growth in demand.
Buy smart, buy safe, buy Seeff
Author: Seeff Blouberg
