Continue renting or take the leap into the Buyers' Market
With all thanks to 2020 and the Novel Corona Virus, COVID19, the South African Reserve bank cut interest rates 5 times in one year leading to a prime lending rate of 7%, the lowest level since 1966.
The lower interest rates as well as lower transfer duties are leading buyers, who previously could not afford to buy a property and opted to rent, to enter the property market, while cheaper borrowing costs from major banks are enabling buyers to purchase bigger or more expensive homes.
The same trend is now seen in the beautiful town of Hermanus as property sales are increasing at a rapid pace, especially in the middle-priced segment. This could be the time to give up that lease and start to pay off your very own bond on your own home.
"First-time Buyers are streaming into the market, accounting for 54% of Ooba's mortgage bond applications processed in the third quarter, a 10% increase compared to the third quarter of 2019. During this period, Ooba recorded a 50% increase on Q3 2019 in the volume of home loan applications processed, the highest level of volumes in 13 years," said Dyer chief executive officer Ooba
On average a rental in Hermanus of R10,000 could afford you a home to the value of approximately R1,300,000, depending on monthly income and affordability. This changes the outlook of most tenants.
Let's weigh up the pro's and cons;
Advantages to owning a property:
Advantages to renting a property:
For more current information about buying a property in the area you are renting, contact our friendly area experts at Hermanus Property Sales.
(https://businesstech.co.za/news/property/)