12 Jun Reaction to Recent Economic Data
While the statistics may paint an alarming picture, the reality is actually quite different. According to FNB’s Property Barometer statistics for the past 18 years, it shows that if a buyer purchased a home in 2008 for R1 000 000 during the recession, in 2018 the home would be worth R7 184 528.90. Whereas, if you invested R1 000 000 in the bank in 2008, you would only yield R3 996 019.50, further proving property to be the sounder and more profitable investment. Investors both locally and internationally endorse property as a stable investment vehicle. This can be attributed to constant demand combined with excellent value-for-money homes that Cape Town offers.
According to statistics, local buyers are still being approved for bonds on a steady basis, further lending to the fact prospective buyers are in good credit standing. Additionally, Greeff Christie’s International Real Estate has a very strong referral base as well as a huge database of qualified buyers. This makes it easier to market property as there is always someone willing to buy. The exchange rate has opened up the South African market to more international investors but the favourable exchange rate is not the only driving factor. Cape Town and South Africa in general has become synonymous with iconic beauty, excellent value for money and an unbelievable lifestyle.
Any type of commitment to a bond is a long-term purchase and it is a given that market situations can and will change in that time. What homeowners can do prior to applying for a bond is make sure that their credit scoring is as healthy as possible. This will allow them to negotiate better agreements with lending institutions. It is always a good time to invest in property as there is always a long-term demand for it. While there may be some temporary slumps in the market, investors can rest assured that the market will always recover from them. Investing in property is a long-term investment and should be seen as a marathon rather than a sprint.
As for sellers, it is imperative to correctly price your home from the start. The current market dictates that homes that are realistically priced within their areas, will record less days on the market, thus ensuring a swift sale.