The property market always swings from being a seller’s market to being a buyer’s market and tough economic times generally favour the buyer.
Although we are at present in a buyer’s market and there are some excellent property bargains available, buyers must always weigh up their options before taking the plunge to expand their property portfolio.
1) Know your budget and plan accordingly!
Manage your budget and monitor your expenses so that you do not over-extend yourself. If the interest rate increases you do not want to be in a situation where you are forced to become the seller before you have made a profit. A good rule of thumb is to create an additional budget with at least 2 rate increases and if you can still afford to buy then now is the time to buy!
2) Speak to a professional
Established Real Estate Agents who have worked in a suburb for a while will know the area well and can give you an indication of price patterns and the average rates and taxes. Speak to us if you need a referral.
3) The deposit
The bigger the deposit, the less risk to the banks and it becomes easier to negotiate a favourable interest rate from the financial institutions.
4) Shop around
During a seller’s market, there would have been properties and locations that are out of your budget. However, in a buyer’s market, these property prices may decrease due to a repossession or urgent sale. Buying in a sought-after location will increase the property’s value in a far quicker time frame.
5) Pre-approval
A pre-approval from Select a Bond will give you a clear indication of whether you can afford to buy the property, and it will give you additional leverage during your negotiation. As we have established relationships with all the major banks, with one application we will get multiple offers and we can advise what the best option is for your situation.
Martin 082 447 3463 or
Shannon (in the Western Cape) 084 701 2865