If you’ve been on the fence about buying a home, now’s the time to get off and get into the market, according to Stephen Whitcombe, MD of the Firzt Realty group, who notes that housing demand and prices have already started to rise in response to the two interest cuts announced last year, and that this trend will no doubt be further fuelled by the 0,25% cut announced this week.
READ: Homebuyers: 9 things no-one tells you about owning a home
“This latest reduction is obviously good news for existing homeowners, because it again lowers home loan repayments (by about R17 per R100 000 borrowed), and also means that it’s becoming easier for them to attract buyers and sell their properties if that’s what they want to do.
“In addition, it means that those who have been planning to become homeowners for a while should find it easier now to qualify for a home loan, especially if they have received a salary increase in the past year. For example, those seeking a R1m bond will now only need a household income of around R34 500 a month, compared to around R36 000 a month a year ago.”
But this window of opportunity will be limited, he says. “Rising demand always means less inventory – and more competition for those properties that are for sale. And that translates into higher prices, so if prospective buyers wait too long now to get into the market, they will lose the advantage created by the recent rate cuts.
READ: First-time homebuyers' fears - how to overcome them
“And sadly, we are not expecting the pace of rate cutting to increase any time soon. In fact, this week’s cut may be the last one for a while. The US Federal Reserve decided earlier this week to hold off on any rate reductions for the foreseeable future, and other central banks including our Reserve Bank are expected to follow suit.
“So our advice to anyone who was waiting and hoping for at least one more rate cut this year to make it more affordable to buy a home and pay it off, is not to wait any longer. The sooner you get into this market in which prices are rising, the less you will pay and the more affordable your bond repayment will be".
SEE | Property24 101 - Buyer and Seller specific advice
“Buying a home is one of the biggest purchases a person can make, so you want to be sure to make the right choices throughout this process,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
Here to help make this process a little easier, RE/MAX of Southern Africa shares their top three practical tips for house hunters:
1. Be open to compromising
No home is ever going to be 100% perfect. Being willing to compromise is essential – especially for first-time buyers who are still learning what their money will actually afford them within the current market. Compromise is also an important aspect for couples who have differing ideas on what the house needs to offer. Being able to agree on the essential must-haves versus want-to-haves in a home is a crucial first step before starting the house hunting process. Keep the list of must-have items short and realistic and be open to compromise on any item that falls under the ‘want-to-have’ list.
2. Give every home a fair chance
Making viewing appointments for multiple properties is a must for anyone who is house hunting. Not only will this help buyers narrow down their search criteria, but you might just be surprised by how much you like the property once you see it in person. It often takes walking through a home to realize the property’s full potential. Apart from this, considering multiple properties can help to avoid getting overly attached to one particular house – you can never be certain that your offer will be accepted, so it is a good idea to keep your options open.
READ: How to ace your property purchase
3.Work with a real estate professional
Listing portals make house hunting much more accessible to buyers, but you are losing out on so much value if you fail to involve a real estate agent right from the very beginning. Not only will a real estate agent bring a wealth of local knowledge, real estate expertise, and negotiation skills to a transaction, but they are also likely to be privy to new listings before they even hit the market. The best part about this is that their services are completely free for buyers!
Embarking on the journey of finding the perfect home can be an exciting process, especially when you have the right support and guidance at your side. “From setting realistic search criteria to thoroughly exploring all options, the key to success lies in working with an experienced RE/MAX professional who can help you carefully plan and make informed decisions. Armed with these practical tips, your house hunting can become a stress-free, rewarding experience,” says Goslett.
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