In Now the Right Time to Invest in a Property

Is NOW the right time to buy?

Rest assured that the final decision on when to buy remains that of the potential buyer alone.

Although this may not bring much comfort to a potential property investor or home owner, all that can be done is to further increase the understanding of the current and predicted property market and perhaps spend some time investigating the intended property and its surroundings in order to establish valid value.

As long as all the elements have been taken into account and all considerations made in terms of fulfilling housing and safety needs, then there surely is no better time to buy than right now!

Let us find you a Property Now.

If economists are to be believed when they predict that South Africa is at the tail-end of the downturn in property prices, then the best time to buy is now - before the prices start recovering and rising again.

The property market historically resides in the fluctuating environment of the rise and the fall and it is understood that the cycle will soon begin its upward trend once more.

Because we have enjoyed falling house prices in the market of late, many buyers have been wondering whether or not to hold out until further reductions can be enjoyed.

However, for those who are selling one property in order to invest in another, waiting it out may not be the wisest move to make. The price reduction in the purchase of a new home (at today’s prices) should be greater than the amount forfeited on the sale of an existing property which would have been bought several years before. In other words, a 10% negotiation offered on the purchase of the new property will amount to much more than the 10% negotiation potentially offered on the sale of the older property with the supposedly smaller bond.

The net effect is a desirable one whereby the amount “saved” on the purchase of the new home will be greater than the amount “lost” on the sale of the current home.

South African economists are of the opinion that house prices are nearing the end of a downturn in the property investment cycle. Though buyers have been waiting expectantly for prices to drop further, most economists believe that the market has already reached its low point and expectations for any further major price reductions could be unwarranted. It may just be that potential buyers will lose out if they wait too long for the market to reach its lowest point.

If the tides are turning then investors and first-time buyers would be wise to jump onto the property bandwagon now. Investors are able to enjoy capitalising on new developments at highly competitive prices and first-time buyers will reap the rewards of reduced property prices enjoyed at the present lower interest rate.

DISCLAIMER: The information contained in this article is the opinion of the Author and should not be taken as advice. The Author is NOT registered to give any type of Financial Advice and is not associated with a Bank or Finance Company. The information in this article has not been verified and may be inaccurate or incorrect.