POLOKWANE – Is the lockdown a good time to buy property?
Before buying property, one should of course, always consider the obvious factors such as interest rate and location, but lockdown conditions are a new addition to the consideration mix.
For Nicolien Stapelberg of Nicolien Stapelberg Properties, the answer is simple: it’s always a good time to buy property.
“Property has stood the test of time as a good investment. But be careful not to have expectations of a quick or high return on this investment. It is mostly a solid long-term investment. The interest rate has dropped to 7,25% on 21 May which makes it even more appealing to investors. The last time we saw interest rates as low as this, was in 1973.”
Since property is a good investment, there will always be willing buyers and sellers, she says.
For property to be a good investment, it takes a combination of aspects to be in place:
- Buying a property at the correct market-price.
- Trust your agent and do not attempt to buy a property direct from a seller just to save agent commission.
“Your property professional will assist you to look out for pitfalls and he or she will also compile a report to indicate what the current condition of the property is,” Stapelberg advises.
Why is now a good time to buy?
- The interest rate is favourable.
- First-time home buyers will enjoy benefits on transfer costs.
- With the current economic situation taking its toll, valuable properties could be readily available at bargain prices.
- Cash buyers are always looking for a good investment where price and location play a major role.
There are three factors to look for when you buy a property, to ensure that it is a good investment:
- Look at the area where you want to buy and the market-related prices for similar properties advertised in the area. This is a good indication if the property you are interested in is over-priced or not.
- Know what type of property you want to buy: will it be a flat, a house, townhouse or a smallholding?
- Make use of a bond originator to secure the best interest rate for you.
She concludes: “Remember, the most important point to consider when you want to invest in property is still: location, location, location.”
