Property firms will always tell you to invest in a house – but why in 2017?
If buying property is on your wish list for 2017, property group Seeff offers a few good reasons why this is a good year to invest.
Prices have stabilised
While price growth has slowed, we are not seeing prices drop and you are unlikely to get a better deal than what is on offer in the market right now. If you are looking to buy and are able to do so financially, then now is a good time to buy.
Motivated sellers will negotiate
Sellers who are serious about selling their properties will always be willing to negotiate. The banks are still extending loans to qualifying buyers and there are some good opportunities still in the market. So, there are plenty of reasons to invest in property.
Flat interest rate
The recent decision to keep the interest rate flat, means that you can still take advantage of a bit of interest savings. Be sure to always budget carefully though as we are in a challenging economic climate where economic growth remains slow and prices are climbing.
Buying is better than renting
If you are able to do so, buying your own home allows you to invest in an asset which, if you buy the right property in the right location, will appreciate in value over time. Paying off a mortgage loan is in many ways a forced saving and one of the most effective ways to build wealth. Property is a good long-term investment and while home ownership is not just about the investment potential, it is still a comparably safe way of investing money and, if you hold on to it long enough, it will generally appreciate in value over time.
Rental income potential
Many coastal and urban areas have high rental demand and even if you earn a rental income that is slightly lower than your bond repayment on such a property, you are still receiving a substantial contribution towards an additional asset that could for example serve as your retirement home at a later stage.
Security
Owning your own home creates long-term security for you and your family. It is critical to always ensure that you buy within your means and that you allow for interest rate fluctuations. Paying a deposit allows you to create an equity buffer in your property that should enable you to weather short term financial difficulties.
Read: Finally, some good news for home buyers in South Africa
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