New opportunities for first time buyers

Going through the newsreel on the Private Property website over 2018 would have showcased just how tough of a year it was for most consumers, but in a recent article they looked at some of the more positive points that indicate that 2019 could be the perfect time to look for property in Midrand, especially for first time buyers.

We are far from home and dry when it comes to the numerous issues that emerged during 2018, with political uncertainty and the tough economic conditions still causing concerns. But when looking at some factors in the property market, experts are predicting that the second period of 2019 could be ideal for first time buyers.

One of the major factors aiding this is the competitiveness between banks to make their home loans more affordable and accessible. This is best observed when looking at statistics from ooba, that show that the Average Deposit as a Percentage of Purchase Price has dropped by 20% year on year. This is quite a big deal for buyers, as it means that deposits have gone from 15.5% to 12% in the space of a year.

“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.

Added to this, negative real property price growth has also come into the equation, which means that salaries are increasing at a faster rate than property prices, which leads to properties becoming more affordable. Considering this along with the improved lending conditions showcases why this is the perfect time for buyers.

However, you should take a look around and get various home loan offers to ensure that you are getting the best deal on the home that you want.