If you are in the market to buy a house this year then the experts say that you should be feeling optimistic! South Africans can have hope. Despite the past year of tribulation with the economy, unsteady politics, load shedding and drought throughout the country, we have reason to believe that property is still a good investment and wealth creation vehicle for 2020.
Berry Everitt, CEO of the Chas Everitt International property group, says that South Africa has a young and rapidly urbanising population in need of millions more decent and affordable homes to own and rent. In addition, we are experiencing low inflation along with relatively low-interest rates; the cost of living in SA is low in world terms and our banks are eager to lend to home buyers, investors and developers.
It is no surprise then that South Africa is seeing a flourishing of young population first-time buyers, even single women are emerging as first-time buyers. Because the banks currently have relatively low-interest rates along with an aptitude towards lending it opens up multiple opportunities for both first-time buyers as well as property investors.
Statistics from ooba home loans show a 9.2% reduction in the average deposit required by homebuyers, and 7.1% reduction in the average deposit for first-time homebuyers from Q4 2019, compared to Q4 2018.
The property market has been correcting itself, which happens when supply exceeds demand. When there are too many properties on the market, the buyer has the advantage in the price negotiation. This advantage then creates a positive buyer’s market.
Peripheries or outlying areas on the coast and countryside are gaining appeal as more and more people are able to work from home, extending their weekend with fewer days required at the office. These professionals are called super-commuters and the new norm is travelling between their jobs in the city and their homes in the countryside.
Berry Everitt, CEO of the Chas Everitt International property group, said that the rationale for this lifestyle is to ensure that their family gets to live and grow up in a safer and less stressful environment while they are working.
The country towns Napier and Bredasdorp, along with coastal areas Struisbaai, Agulhas, Suiderstrand and Arniston offer buyers the opportunity to live in safer and natural surroundings, with the city a mere 2 hours away. Internet-based businesses enjoy increasingly stable, faster internet, and with highly efficient online door to door delivery, it makes working from here a viable option.