“Do whatever you can to hold onto your property for as long as possible” warn SA real estate agents
If you own a property do whatever you can to hold on to it as long as you can and if you have to sell, its vital to price your home correctly, warns Private Property’s Lea Jacobs.
“Although no one is absolutely certain what’s going to happen now that the country has been downgraded to junk status by two of the world’s leading credit agencies, it’s pretty obvious that things are going to change – and not necessarily for the better,” said Jacobs.
She particularly warned against panic selling and overpricing your home in order to recoup debts. Instead she urged potential sellers to weigh up the pros and cons and try to ignore any short-term gains.
“Life may be good in the immediate aftermath of selling a home. You may be able to pay off some if not all of your debt and live comfortably, but it’s unlikely (unless you are very strong willed and work according to a strict budget) that this will last indefinitely,” said Jacobs
“Remember, if you are planning to lease a property, rents will also increase as interest rates go up. What we are trying to say is hang onto your property for as long as possible.”
If downgrading in some form or another is not an option Jacobs recommended first looking at a more affordable car, cutting back on entertainment and food costs or re-evaluating your insurance and health needs.
“Basically do everything in your power to protect your biggest investment, namely your home.”
“If there comes a time when it becomes apparent that you simply can’t afford the bond repayments, speak to the bank about extending the loan period, thus reducing the monthly repayment. If that’s not an option and you have to sell, make sure you price the property realistically.”
“Call on different estate agents to give you a valuation (we recommend basing the selling price on the average of at least three opinions). Ask how the agent arrived at the recommended figure and why they would advise you to sell for that amount.”
“Make sure you get your priorities straight by holding on to your biggest and most valuable asset – your home – for as long as you possibly can,” said Jacobs.
Read: The pros and cons of investing in student accommodation in South Africa
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