New buyers urged to enter the property market

The Private Property website is a treasure trove of information for those looking to enter the market, so if you are planning on looking at property in Moot, then making this site a regular stop is a smart idea. A good example of this is the recent article detailing why 2019 could be the perfect time for new buyers looking to enter the market.

In 2018, entering the property market was a distant thought for most as they battled against price increases as well as reading about the political uncertainty and struggling economy. However, experts have taken note of some positive changes and discussed why they could prove significant to those who are eager to own property in South Africa.

The first point was the fact that banks are proving to be more competitive to land new business. Their eagerness to do this means that consumers are getting more accessible and affordable home loan offers. This was backed up by ooba, who said that they had seen a 20% dip in the Average Deposit as a Percentage of Purchase Price when looking at the numbers year on year – with it now resting at 12% as opposed to 15.5%.

“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.

Diving a little deeper, the issue of negative real property price growth also came to the surface. This essentially means that people are seeing their income rise at a higher rate than the house price growth, and leads to more affordable properties.

Considering the above, ooba recommend that you shop around for home loan offers as this will allow you to maximise your returns on any bargains you find in the property market.