Is buying property always a good investment?
Conventional wisdom supports the thesis that buying property is always a good idea, and there’s a lot of truth to that, but what if your current financial situation comes a little too close to bearing the additional strain?
South Africa is currently a buyers market as the economy faces a slowdown in the face of the land expropriation statement by the ANC and an otherwise improving but still troubled market space. This does also spell opportunity for savvy property buyers with some real estate going for less than it would have otherwise; but, does this mean that everyone with a steady income should be seeking to make a purchase at the moment?
It’s always essential to delve deeply into your financial situation and coming up with a firm idea of how much of a deposit you would be able to put down and what monthly installments you would be capable of. It often helps to come up with two sets of amounts, a preference and something which may not be as desirable but would be manageable. Bear in mind that the banks may see things differently and make offers which you didn’t expect. At least with this preparation done you will know which offers you feel comfortable accepting.
Whether now is the time for you to buy property depends greatly on what your plans are. If it’s your first real estate purchase then it’s important to know that it’s a long-term investment. Very rare are the occasions when one can buy and sell immediately for a profit. Most of the time it takes years for the investment to mature. If you’re planning on living in the house then it will also limit your job opportunities somewhat by location.
But, if your finances are in order and you’re ready to make a purchase, then there probably are no better investments than those made in real estate. And with the market showing signs of recovery there are fantastic deals to be had, such as the property for sale in Vereeniging.
