According to real estate professionals; we are currently in a buyer’s market, meaning, if your affordability profile is set up right, this could be an ideal time to buy a property.
Tuesday evening, Johannesburg – Speaking to Lloyd Hobson, National Sales Manager at Lead Home SA, The Best Drive‘s DJ Sabby and Altovise ask some pertinent property-buying questions for current and aspirational home owners.
Hobson shares that one of the reasons why right now is a great time to buy property, is that “base price has come down.”
“So is it the right time to buy a property? Absolutely,” Hobson shares.
According to Hobson, the market is experiencing an over-supply and that unrealistic sellers are being exposed during this time. Hence, in 2016, where you’d see 1000 Bryanston properties on the market, this time around you’ve got almost 1400.
What’s key to remember during this time is that sellers are not price-makers, they’re price-takers. This means that their aim is always to sell at a higher price, but this time around they are forced to sell at realistic prices.
Altovise asks Hobson what the “key factors for first-time buyers to consider are, especially during this time?”
It is not possible to “view” properties at the moment. You can do a pre-qualification at this time. Also shows you what your credit score is. Get your ducks in a row. Do your research
“What’s critical for any buyer, is to make sure they understand their affordability,” Hobson responds.
Hobson suggests that this is the perfect opportunity to do your research and check your affordability via a pre-qualification. That way you can plan accordingly, and see just what you can afford at the moment.
If you already have a bond, you can also look for another property as “it all depends on the banks. They check your exposure and how stretched you are on a personal capacity, so if you can afford another one, you can get it,” Hobson adds.
Hobson also notes that home loans are often about 30% of your gross salary (monthly).
- Is it the right time to buy a house?
- Is it legal to buy a property during the lockdown?
- What’s the key thing a first time buyer must know when it comes to buying a house during this lockdown?
- For someone who already has a bond, what’s the best deal right now when it comes to interest rates?
Listen to the answers and the FULL discussion: