SA Property – Rent, Extend Repayments, But Don’t Sell!
South African – Property Market Overview
Rent, Extend Repayments,
But Don’t Sell!
Due to the interest rate increases during 2008, many homeowners are finding themselves under tremendous financial pressure, and may be considering selling their existing properties due to this. However, the advice from the property experts is to hold onto your existing property or at the very least to try and stay in the property market.
Historical trends have shown that property always bounces back, and by selling under pressure could result in your not being able to get back into property when the market improves and prices once again begin to rise.
If necessary, ask your bank to extend your bond repayment period, or arrange to pay only the interest portion of your bond. However, it is vital to not miss any bond repayments so as to avoid undermining your credit rating.
Wherever possible, try and cut living expenses. Moreover, you must avoid adding to your debt, especially if you opt to consolidate your debts into your home loan account in order to benefit from the lower rate of interest
SA Homeowners are not alone in facing tough times!
Hard-pressed South African homeowners at least have the consolation of knowing that they are not alone in battling with a declining property market and that inevitably conditions will improve.
Tough local conditions in South Africa are now mirrored by the rest of the property world. This is driven mainly by poor business conditions, credit restrictions, high interest rates, mounting inflation and declining consumer disposable income.
With the introduction of the National Credit Act, South Africa is possibly more stable in this regard as this has helped the country avoid the direct effects of the sub-prime mortgage crisis.
South Africa potentially also has millions of South Africans who aspire to first time home ownership. In this respect, with positive ripple effects throughout the economy, in the coming years, South Africa could see an unprecedented housing boom, and with all things being equal, the property cycle will turn.
Economists predict the start of an improvement late next year, so homeowners should use every option they have to stay in a market that has persistently demonstrated its resilience over time.”
Courtesy: Agent – The Official Publication of the Estate Agency Affairs Board
“Redressing the Past, Building the Future and Guiding the Real Estate Business towards Professionalism”