UNDERSTANDING THE PROPERTY MARKET'S UPS AND DOWNS IS VITAL FOR SUCCESSFUL PROPERTY INVESTMENT
Category Property Ownership
The property market is constantly going through cycles. The market is influenced by politics, crime, inflation, and interest rates, just to mention a few factors. Like everything else, property sales are fuelled by demand and supply. When there is an oversupply (a lot of houses available for sale), buyers are spoilt for choice, and the prices are pushed downwards.
"The market is still fairly resilient in the face of recent interest rate hikes, but sellers are cautioned to sell sooner than to hold out for a higher price, as we're in a rising interest rate cycle. Interest rates are expected to peak around 12% towards the middle of next year. Prices will be under pressure as the rates rise," says Bryan Biehler of Huizemark Property Group.
"In an uncertain market, fuelled by increasing costs - interest rates and inflation increases, sellers and buyers should work with knowledgeable, experienced agents to guide them through the property sales and buying process. Sellers who work closely with their property practitioner generally sell quicker and at a higher price with fewer hassles", he adds.
Recent data released shows that more young people are entering the market than before. In fact, 40% of buyers are currently under the age of 36. These buyers tend to apply for 100% bonds, which means that they require much less money to whet their toes in the property market. The most vibrant sector relates to properties under R1 500 000 as demand continues to soar. There is nothing quite as exhilarating as stepping over the threshold of your very first home, but young buyers should be cautioned that their bond repayments will increase in line with increasing interest rates. When your home becomes unaffordable it will spoil your enjoyment thereof.
"Buyers should work with an agent to guide them into making informed decisions and with a bond originator to get the best-qualified advice from a personal financial perspective," says Biehler. "Extra effort and qualification will create fewer collapsing deals and ensure peace of mind. Sellers will benefit by working with an agent who comprehensively pre-qualifies their buyers."
As one of the oldest real estate companies in the country, the Huizemark Property Group has weathered the many storms that regularly face the property industry. Not many other brands have had the privilege to blow out 60 candles on their birthday cake! Huizemark has consistently pioneered new and better ways for its agents to provide uncomplicated property solutions for buyers and sellers alike. "With the support of a credible brand the agents will be able to assist with the necessary property disclosures, changing property legislation and be an objective 3rd party to achieve a mutually acceptable transaction", says Biehler.
Author: Adrie Barnard
