For sale signs everywhere and 108% home loans – it’s an epic buyers’ market
325 days ago
South Africa’s residential property is a “buyers’ market” – in other words, the supply of available properties is plentiful, but the demand is just not there.
If you’re one of the lucky few with job security and good credit record (banks are starting to approve 100% loans again) – perhaps now, during the recession, is a good time to invest?
Despite the economy, according to “Private Property”, more than half of all new home loans applications are for first-time buyers.
Abongile Nzelenzele interviewed Bryan Biehler, Director of Huizemark.
Demand for property is a lot lower than the supply. It puts downward pressure on prices because buyers are spoiled for choice… The power is in the buyer’s hands… In a market like this, you only want to sell if you must sell. The market is depressed… buyers are spoilt for choice… There’s some good value out there now…
Bryan Biehler, Director - Huizemark
There are pockets of excellence where areas have retained prices…
Bryan Biehler, Director - Huizemark
Buying trends have changed. Buyers are now looking for lock-up-and-go, low-maintenance, high security… it puts pressure on freehold properties… High-density community living is very favourable now. Buyers are buying smaller homes… it makes sense – less is more.
Bryan Biehler, Director - Huizemark
Price your property competitively… so that it’s attractive to buyers. If you don’t your property will become the market wallflower… For buyers… financial institutions are very aggressive in wanting to give out loans. Many first-time buyers are getting 105% and 108% bonds. The transfer duty threshold has been raised to R1 million.
Bryan Biehler, Director - Huizemark
For more detail, listen to the interview in the audio below.
This article first appeared on CapeTalk : For sale signs everywhere and 108% home loans – it’s an epic buyers’ market
