According to Tony Clarke, MD of the Rawson Property Group, the surge in activity is due to a series of events contributing to nearly irresistible, once-in-a-lifetime investment conditions.
Indeed, with the prime interest rate now at a mere 7 percent, a 100 percent bond on a R1 Million property could cost R7,753 per month – over R1,700 less than in January this year. This brings it within the affordability range of buyers earning around R26 000 per month. However, Clarke cautions buyers against extending themselves to limits of their personal finances.
He said, “Investors can rest assured that the favourable finance conditions are likely to stay for a while. Lowering interest rates has been an essential step for our government to stimulate economic growth after the extreme effects of the coronavirus on our economy and unemployment rates. Unfortunately, growth and recovery will be slow, but the silver lining of that for investors is that interest rates are unlikely to start climbing again any time soon.
Even before hitting the market, Clarke suggests sellers contact an experienced and active local agent to provide an updated valuation – or even virtual valuation – on their home. This is an invaluable opportunity to pick an expert’s brain not only on realistic sales prices but also how best to position and market your property to appeal to the right kind of buyers.