Serious first-time buyers should do their research and aim to purchase before the second half of 2019. This is according to advice by regional director and CEO of RE/MAX of Southern Africa, Adrian Goslett, who said that this is because the property market in general is likely to be off to a slower start in the first half of the year, and that it is likely that sellers will be more open to negotiations than they would be in a more thriving market.
“My advice for repeat buyers who purchase in 2019 is not to skip the process of shopping around for the best possible deal on a new home loan should they require one,” he said. “Last year, the Monetary Policy Committee predicted interest rate hikes to be on the cards for 2019, so securing the lowest possible interest rate on your home loan upfront will prove helpful when interest rates climb.”
Goslett this week predicted that, based on market performance for the second half of 2018, the real estate market that was shifting beyond the reach of entry-level buyers and in favour of the middle-income buyer.
“I predict that this trend will further entrench itself in 2019, making it even harder to find properties priced below the R400,000 entry-level price bracket as the year progresses,” Goslett said. “To get the best possible price, buyers should do their research and make sure they know what houses are selling for in that area – not just what they’re being marketed at – so that they put forward the most reasonable competitive offer.
“Similarly, first-time renters should not rush into making any decisions before they’ve done their market research. Many suburbs experienced lower demands for rentals last year. So much so that landlords were often forced to lower their rental amounts in order to secure new tenants. All tenants should, however, keep in mind that there might well be an uptake in the market in the second half of 2019. It would be prudent for tenants to budget for rental increases towards the end of the year.”