According to a Fitzanne Estates property agent 2019 is a good year for first time home property buyers. He noted, “2018 was a challenging year for the property market in South Africa, but so far 2019 is looking more positive.”
He explained that during the last quarter of 2018 the property market activity was hampered by economic challenges, political uncertainty and the increase in the prime lending rate to 10.25% which contributed to the slow property growth.
Better News For First Time Buyers
He said, “Although general market conditions for the first quarter of 2019 are not showing significant changes , competitive bank lending conditions and slow property price growth show a better opportunity for first time homebuyers who want to enter the home market.”
A local property analyst reflected on the demand of residential property, “ We now have a lower demand in the residential property market but despite this demand banks are competing strongly against each other making loans more affordable and accessible.”
He added, “A Real property price growth that is negative means that the property market is affordable as wages increase by more than the property values. Property prices that are cheaper and favourable lending conditions are beneficial to first-time home buyers.”
What is the best time home property buyers to enter the market?
Rhys Dyer CEO of Ooba a home loans provider explained the best time for home property buyers to enter the market.
“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.
While applications to Ooba by First-time Buyers increased by 3% year-on-year, our 100% bond applications showed an almost 7% increase over the same period.
“Although this is indicative of the demand for 100% bonds from first-time buyers, we are also seeing more second-time buyers successfully applying for 100% bonds. Buyers are finding it increasingly difficult to raise a deposit due to the challenging economic conditions and banks are more prepared to offer customers 100% bonds,” adds Dyer.
What is the #1 tip for first time home property buyers?
A Fitzanne Estates property management agent the most important tip for first time property buyers in South Africa, he said, “We advise first time home property buyers to shop around to get the best home deals available. Potential homebuyers must use free home loan comparison services that are available online for free.”
Rhys Dyer concluded by adding, “Prospective homebuyers should take advantage of this positive lending environment. Given the competition, amongst banks for new customers. We pre-qualify our buyers to make sure they shop in the correct price bracket, allowing them to confidently negotiate a satisfactory price knowing that getting bond finance is a mere formality.”