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Growth prospects in the South African Property Market 2018 - BERADER Properties blog

Indeed, after the recent turn around in the ‘politics’ in the Country and reduction in the interest rate - there is renewed ‘life’ in our local property markets. Investor confidence in the country is improving daily.

Growth prospects in the South African property market

 

Indeed, after the recent turn around in the ‘politics’ in the Country and reduction in the interest rate - there is renewed ‘life’ in our local property markets. Investor confidence in the country is improving daily.

Growth prospects in the South African property market

The current South African property market outlook remains cautiously favourable with moderate house price growth, relatively low interest rates, pent up demand and an increased appetite for risk by lenders. South Africa’s continuing popularity as an international destination should also see growth rates increase.

The decision by the Reserve Bank’s Monetary Policy Committee (MPC) to cut interest rates by 25 basis points, with the home loan lending rate now at 10% down from 10.25%, is welcome news for homeowners and would-be buyers. The lower interest rate will stimulate the residential housing market as prospective home buyers will now find it easier to afford the repayments on a new home loan. The lower interest rate is also a positive for the banking sector, more customers will be applying for home loans and such long-term commitments with banks and lending organisations, would guarantee future income stability for the banks. The rate will create increased demand for property, stimulate the economy and will allow more buyers to consider property as an investment as opposed to just residential purposes.

More realistic expectations?

Estate agents are encouraging their clients to be more realistic in terms of pricing their properties and of course the South African property market will have some distressed sellers needing to climb out of their properties quickly. This creates opertunity for buyers as ‘for sale’ houses compete in this environment.

Is it a good time to buy?

There are a number of factors that make this a good time to buy for some people:

- It’s a great time to drive a hard bargain price wise
- Cash is king if you are that position
- Rental yields and demand are increasing
- There are some bargains in the South African property market but beware of expecting instant gratification though. Most industry analysts agree that you should be buying (if for investment purposes) with an expectation of holding and not a quick turn around.
- If its a family home or holiday retreat now may well be the ideal time to secure a bargain or keenly priced property.

Selling your property?

In markets that always favours buyers or sellers, it is important to have a plan of action. You need to achieve the best possible selling price for your property. A sound pricing strategy is essential in order to attrack the right buyer to your home at the right time..

1. Make small fixes.
Inspect your home with a buyer’s eyes, and correct the flaws that are most egregious (if affordable) or can be relatively easily fixed—from repairing cracks in the walkways to repainting dingy walls or oiling creaky hinges.
2. Set an achievable market price.
The most common pricing mistake that homeowners make is inflating their listing price to counteract buyer negotiations. When marketing your property an estate agent will be able to guide you re market trends and achievable prices.
If the parties are not open to negotiating it will be the end of the seller purchaser relationship. This will largely be influenced by how quickly you would like to sell and how much money you need to achieve out of the sale of the property. Similary one should avoid the risk of multiple price reductions, remarketing your home may lead to your property sitting on the market for longer than necessary as you already lost a potential deal and the interested purchaser already looking elsewhere. This will certainly impact on you, resulting in a delay in your move.
3. Clean and declutter.
Weed out excess furniture, knicknacks, and “stuff”—toss it, donate it, give it away, sell it at a yard sale, or put it into storage—so the house seems more spacious and buyers can imagine themselves in it.
4. Stay vigilant about maintenance.
From the moment you start showing your house, keep the lawn mowed, shrubs trimmed, gardens weeded, rooms spotless and clutter-free.
5. Ready your home for show days.
Hide pocketable valuables, display fresh flowers or bowls of fruit, bake a batch of cookies for the homey smell, open the drapes, keep pets out of sight, and stay quietly in the background (or leave, if an agent is showing your property).
6. Start organizing for your move.
Once the sale is final, consider hiring movers or order supplies and pack up your belongings.
Should you be interested in us assisting you in marketing your property please contact me Jerome on 072-751-1391. We look forward to being of assistance to you.

Kind regards

Jerome Geldard

BERADER Properties - Sales, Rentals and Management