Browsing the newsreel on the Private Property website in 2018 was not an easy process, but if you are still eager to buy property in Mpumalanga, then the latest updates provide some more hope, with first-time buyers the most likely to benefit from current circumstances.
The problems of 2018 are certainly not a thing of the past as yet, with political issues and economic concerns still dominating the news in early 2019. But according to experts in the market, although the first half of 2019 is not expected to offer drastic changes, there is optimism ahead of the second period of the year.
One of the major contributing factors is improved lending conditions. Banks are still eager to compete with one another in a bid to make their home loans more affordable and accessible. This is best seen by looking at ooba’s statistics, which showcased that the Average Deposit as a Percentage of Purchase Price sunk by 20% over the course of the last year. This means that deposits are now around 12%, as opposed to 15.5%.
“This is the ideal time for prospective first-time homeowners, including those without deposits, to enter the property market. 80% of our 100% bond applications in Q4 18 were approved compared to 72% in Q4 17,” said CEO of ooba, Rhys Dyer.
Then there is the negative real property price growth discussion, where salaries are growing at a faster rate than property prices. This leads to cheaper properties, and coupled with more affordable home loans, it allows buyers to dominate in the market.
For this reason, Dyer also warns that buyers should look at various offers before selecting their finance, as that will allow them to land the best possible deal.
