Why you should be BUYING property NOW

Why you should be BUYING property NOW

Category Property Investment

Following 3 Repo Rate cuts this year, from 9.75% down to 7.25%, interest rates are currently at 50 year lows meaning it is even more affordable to buy property.

Here are a few more reasons why we believe now is a good time to buy:

1. Selling Prices under pressure
   A major contributing factor to the current buyers market is the oversupply of property.
   In Cape Town we have seen a multitude of developments over the last few years tilting the scales of supply and demand.
   This means many more properties available with less buyers around, causing price pressure and some savvy buyers able to pickup properties at a 10-30% discount on asking prices.
    
2. Banks eager to lend
   Risk criteria for the banks is ever changing however at present, all big bank lenders have shown an increased appetite towards mortgages and lending towards those in good standing and able to afford the cost of their bond on a monthly basis.
   Betterbond reports in May 2020 an increase to 76% approval rate for new bond submissions with some first time home buyers receiving bonds up to 105%.
    
3. Declining Rand
   Following the last Moodys downgrade and subsequently the Rand weakening as much as 20%, SA property is even more attractive for overseas investors who have dollars, euros or pounds to spend
    
4. Lower Interest Rates
   As mentioned interest rates are at 50 year lows and may very well go even lower meaning property will be even more affordable.
   The below table shows you exactly how much you can save currently.

Author: Cesar Alexandre