Forgetting 2018 will take some doing for many consumers, and if you had been scouring for updates on Private Property’s website it would make for some grim reading, but in a recent article it was revealed that new buyers could be in for a pleasant surprise when looking at property in Limpopo in 2019.
All of the problems that arose last year are by no means solved, with the economic issues and political uncertainty still a major talking point at the start of this year, but experts are suggesting that the second period of 2019 could be excellent for new buyers heading into the property market, with bargains still up for grabs.
Right now, there are still improved lending conditions across South Africa, with banks competing head to head to make their options more accessible and affordable to potential home owners. This is clear when looking at information from ooba, which showed that the Average Deposit as a Percentage of Purchase Price has plummeted by 20% when observing year on year. To translate this, buyers today are putting down 12% deposits, instead of the 15.5% that was needed a year ago.
“This is the ideal time for prospective first-time homeowners, including those without deposits, to enter the property market. 80% of our 100% bond applications in Q4 18 were approved compared to 72% in Q4 17,” said CEO of ooba, Rhys Dyer.
Then there is also the issue of negative real property price growth, which means that people are seeing their earnings increase at a higher rate than property price growth. This leads to more affordable properties, while the lending conditions on top of that create a perfect atmosphere for buyers.
However, before you put your signature on the paperwork, it is recommended that you browse through multiple home loan offers to make sure you are getting the best deal.
