Why first time buyers have the advantage
According to experts there is some positive news to draw on if you are looking to buy property in Johannesburg in 2019, especially as a new buyer.
Staying up to date on the latest in the property market is as simple as browsing the news reel on the Private Property website, but over the course of 2018 this wasn’t pleasant reading – however, according to experts there is some positive news to draw on if you are looking to buy property in Johannesburg in 2019.
Although 2018 may seem like a distant memory right now, the problems that it brought are still an issue, especially political uncertainty and tough economic conditions, but experts believe there will be a turn for the better in 2019, especially for first time buyers looking to enter into the property market.
One of the reasons for this optimism is the fact that banks are still being highly competitive with one another. This means that banks are trying to make their products more affordable and accessible. Which is evident when having a look at information from ooba, it shows that the Average Deposit as a Percentage of Purchase Price has slipped down by 20% in the space of a year – meaning that buyers are putting down 12% now, instead of the 15.5% previously.
“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.
Then there is also the case of negative real property price growth, which means that people are seeing their earnings increase at a higher rate than the growth of the property price. This allows for more affordable property options, and when paired with the improved lending conditions, it means that buyers are in the driving seat.
Experts advise that in current circumstances, it is best to assess multiple home loan offers to ensure that you are getting the best option.
