February brings with it the National Budget Speech, and in the leadup to this crucial moment, property investors and professional property management role players are getting ready to roll with any punches that might be thrown. The past two years have been tumultuous at best, and although there is a general cause for optimism there are various factors to consider going into 2022.
Here are a few key forecasts by Pearl Scheltema, CEO of Fitzanne Estates, sectional title expert, professional property management professional, and trustee management trainer.
“The real estate industry is a lot like a gearbox – the various ‘cogs’ in the system all have an influence on one another. As such, the behaviour of South African property buyers, renters, and sectional title owners will all have an impact on one another,” Pearl explains.
More first-time buyers will continue to enter the property market
“Our prediction is that interest rates will rise throughout 2022, but only marginally so. I don’t believe that banks will burden current property owners with a 1% increase. We experienced a 0.2% increase last year, so I believe that the increase will likely only reach the 0.5% mark – if that,” says Scheltema.
According to her, the result of this is likely to be that first-time buyers will remain in a very good position to invest in property. Individuals who may only have been able to rent up until the interest rate reduction, might now very well find themselves in a position to buy.
“However, as a professional property management and real estate specialist, it is vital to communicate to buyers like these that there is risk involved. If someone is considering a purchase as a first-time buyer, I would advise them to budget very carefully. It’s not only the repayments to the bank you have to consider, there are other factors that also play a role.”
This includes things like property tax, services, electricity rates (which is poised to go up by at least 15% this year), maintenance, as well as levies to a body corporate, in certain cases.
“In cases where buyers plan well it is a wonderful opportunity to buy one or more properties. However, if things are not that well mapped out, it could potentially come back to haunt buyers who may not be able to keep up with all the financial responsibilities that come with property ownership in the long run,” Scheltema cautions.
With such a complex time ahead, it’s essential to focus on what can be controlled. Keep informed and surround yourself with a team of competent, knowledgeable professional property management experts who can guide and support you no matter where the market takes us.
Read more:
New Property Practitioners Act now in full swing
#Budget2022: What should we be expecting in the real estate industry? Part 2 Rental Industry
#Budget2022: What should we be expecting in the real estate industry? Part 3 Sectional Title Schemes
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Media contact: Cathlen Fourie, +27 82 222 9198, marketing@fitzanne.co.za https://www.fitzanne.co.za/
More about Fitzanne Estates
Fitzanne Estates (Pty) Ltd is a Property Management Company that can sufficiently administer your property investment to the benefit of the Landlord, the Body Corporate, and the NPC – Non-Profit Company. Services include Letting, Sectional Title Management, Full Title Management (NPC – Non-Profit Company) and Sales.
Website: https://www.fitzanne.co.za/
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