THE PERFECT TIME TO BUY? MYLES WAKEFIELD EXPLAINS WHY IT'S NOW
The recent interest rate cut from 11.75% to 11.50% is a clear signal that the tide is turning for homebuyers. This adjustment, building on the back of the positive sentiment around the GNU and the cost of living decreasing to a far more palatable 4.4% per annum, creates an ideal opportunity for savvy buyers to invest in property while market conditions remain favourable.
Over the past few years, prospective buyers have faced rising interest rates and steep bond repayments. However, with rates now on the decline, affordability will improve, with buyers being able to secure more advantageous home loans at lower costs, and with property values remaining subdued across most parts of KZN, you're essentially buying at prices similar to those seen years ago-only now, with the added benefit of lower financing charges.
While this is the first rate cut of the cycle, many economists predict further reductions of 1% to 1.5% in the next 12 months. Historically, the property market warmed to rate reduction cycles, and we foresee similar trends to unfold in KZN. Acting now allows you to purchase at a great price before buyer demand increases, which could drive prices higher. Additionally, banks are competing for market share by offering low deposit requirements, making it easier for astute buyers to secure competitive rates.
The market is shifting. Don't miss this chance to buy while conditions are optimal. Invest now, benefit from the of lower rates, and watch your property value grow in the years to come.
Take advantage of this moment-your dream home is waiting!
19 Sep 2024
Author Myles Wakefield
