How to start creating wealth through property in 2020
The dramatic improvement in home loan approval rates and the current buyers’ market have seen more first-time buyers entering the property market. What do these prospective homeowners need to know before they take the plunge?
The FNB Q3 Property Barometer (October 2019) makes for interesting reading. It quotes South African Reserve Bank data, saying “mortgage advances have grown at a progressively faster pace, recording 4.9% year-on-year in August – the highest growth since November 2010. In fact, since the beginning of this year, mortgage advances have outpaced average house price growth in South Africa for the first time in since June 2011. Transactions data shows that this has boosted transaction volumes, specifically in the R700 000 to R1.8 million and R1.8 million to R3.5 million price bands.”
Stian Senekal, of Just Property Midrand says, it is definitely easier for buyers to qualify for home loans at the moment. “We have noticed an estimated 80% success rate in our buyers’ bond approvals this past year and see a trend in clients qualifying for 100% bonds and many at an interest rate close to prime or even below the prime rate in some cases.”
Five tips for selling your property over the festive season
Traditionally, the holiday season can be a tough time to put your home on the market. Most people’s focus shifts to friends and family and getting away for a well-deserved break, so buyer activity isn’t usually particularly high.
According to David Jacobs, Gauteng Regional Manager for the Rawson Property Group, there are ways to make selling during the festive season work in your favour.
He lists these below:
1. Make the most of digital media
The advance of digital media like online property platforms and apps means buyers are connected to the property market all year round these days.
Regardless of whether they’re home or on holiday, they’re still actively monitoring listings and keeping tabs on interesting options. If you can capture their attention online, they may well make further enquiries, even if they weren’t planning on actively house hunting over the holiday period.
Around the world people are moving into gated estates, here’s why
One of the most notable features of urbanisation in recent years has been the surge in popularity of gated residential communities and commercial parks and, although often associated primarily with security, there is a lot more to the growing global trend than a peaceful night’s sleep.
Chris Cilliers, CEO and Principal of Lew Geffen Sotheby’s International Realty in the Winelands, believes that that these developments truly are a sign of the times for a number of reasons over and above the need for heightened security.
“This trend has been one of the most widespread global patterns of development over the past three decades and, transcending cultures, the rise of gated communities has not only been prolific in the Western world but also in countries like Egypt, Turkey and Russia.
“People who prefer living in gated communities are seeking certain values, be it a sense of community, prestige, lifestyle, convenience or security.” Cilliers says that convenience is a key factor in the appeal of these properties.
Pretoria’s lifestyle and precinct developments are booming
Demand for precinct and lifestyle living is seeing an increase in the number of new commercial and residential property developments in select areas in the City of Tshwane in Gauteng.
“The way people live, work and play has changed – more people are moving into secure spaces for lifestyle purposes, and developers are capitalising on this need for convenience and security,” says Ilma Brink, Pam Golding Properties Pretoria regional development sales and commercial property manager.
Property developers remain optimistic about the city’s prospects and continue to identify opportunities for developments, especially in Pretoria East. Brink says the trend towards “precinct development” has seen five commercial and residential developments come onto the market in Pretoria since 2016. These include The Club precinct in Hazelwood, the Six Fountains Residential Estate in Pretoria East, the Menlyn Maine precinct, the Loftus Park precinct, and the recently launched Atterbury’s Castle Gate next to the R21, currently under construction.