Is now a good or bad time to buy property?

[Foxhound5366]

I realise this question is a lot like "Is now a good time to have a child?".

I've found a great deal on a one bedroom apartment in a desirable estate (only R860 000) and I'm convinced that new developments in the area will increase the property value.

I just keep wondering about intangibles: interest rate changes (I'm budgeting on getting prime at 10.25%), politics in South Africa, the chances of an atomic bomb dropping on Pretoria...

Anybody else bought recently who's happy with it, or wishing you hadn't?

 

[Grubscrew]

It is always a good time to buy.

I personally think about buying property as a primary as hedging your monthly housing costs. My bond payment on a house I bought almost four years ago is now about 45% cheaper than the prevailing rent in my area for what I have.

 

[rpm]

Depending on the area and who you are buying from - a developer in a new development, or an established home or apartment directly from the owner – you should be able to negotiate a discount. The price you see in the advertisement is the maximum price the seller wants, not the real price.

The South African property market is currently depressed, especially in the higher end of the market. There is political and economic uncertainty, which means consumers are not spending, especially when it comes to big investments. This gives buyers more negotiation power.

Not sure about the area or the property which you are talking about, because that market segment has more demand. But if you decide to buy, negotiate.

 

[Thor]

I'm looking to buy mainly because I see a lot of people struggling and I've seen some places going for a lot less becuase they need the money.

But like rpm pointed out, the location is of utmost importance.

 

[Polymathic]

In general the market is slower because of the recession which makes it a buyers market.

 

[biometrics]

First six months of next year is when I'm buying. Let the bad times sink in a bit more. :twisted:

 

[Foxhound5366]

Not sure about the area or the property which you are talking about, because that market segment has more demand. But if you decide to buy, negotiate.

Yeah, I don't think that will fly in my case, because it's a brand new apartment directly from the developer... all the apartments have exactly the same selling prices (based on their square meterage), and the desirability of the Estate is high enough that the developer won't want to negotiate. They sold ten apartments yesterday alone ... and there are only three one-bedroom apartments like the one I'm looking at left.

I've checked dozens of other similar apartments and there's just nothing else even close to what I'm getting here in this price range, so I'm happy enough with that. To sweeten the deal the developer is throwing in brand new kitchen appliances for free, which also takes some of the sting out of it.

Bugger it, I've signed the OTP and will drop it off tomorrow. The finance application will be the interesting part of this.

 

[Foxhound5366]

It is always a good time to buy.

I personally think about buying property as a primary as hedging your monthly housing costs. My bond payment on a house I bought almost four years ago is now about 45% cheaper than the prevailing rent in my area for what I have.

Sounds good I'm a good few years off from a house still, but maybe in five years I can sell this apartment to get a bit of a deposit on a standalone house. That's *if* it escalate in value like I'm hoping, but I've got a good feeling about it (famous last words right?).

 

[IzZzy]

I just bought a place - 500k discount. Great interest rate. Times are good if you have weathered the storm so far

 

[chrisc]

Yes, any time. But do your homework. A house nearby was advertised for R3m, too much I thought. 6 weeks later it is now R2.6m, more like it. I will wait a bit more and see. In 2015 I got a house that had been on the market for 9 months. The asking price was R2m, I eventually paid R1.4m and made the seller pay for a new wiring job

 

[Foxhound5366]

I just bought a place - 500k discount. Great interest rate. Times are good if you have weathered the storm so far

R500K discount? That sounds like the five finger discount, lol.

Did you make somebody an offer they can't refuse, complete with a horse head in a bed?

 

[biometrics]

R500K discount? That sounds like the five finger discount, lol.

Did you make somebody an offer they can't refuse, complete with a horse head in a bed?

A year ago a house I was interested that was listed for R2.8m sold for R2.3m, they were emigrating to NZ and had run out of time. I often see asking prices drop 15% after a month or two in my town.

 

[Username:]

It is always a good time to buy.

I personally think about buying property as a primary as hedging your monthly housing costs. My bond payment on a house I bought almost four years ago is now about 45% cheaper than the prevailing rent in my area for what I have.

Good post. Have you considered real-estate as a career ?

 

[Grubscrew]

Good post. Have you considered real-estate as a career ?

Well I hope so one day.

 

[IzZzy]

R500K discount? That sounds like the five finger discount, lol.

Did you make somebody an offer they can't refuse, complete with a horse head in a bed?

Right place at the right time. Was also quite a bespoke offer. Place was also listed for 6 months before we snapped it up

 

[Thor]

I can see it with places here - some of the flats I was looking to buy in Tygerfalls/waterfront is now going for 1.1 - 1.6 it was 1.9 - 2.3 in 2015/16 so I am also thinking of just waiting a little bit more until this reccesion starts showing, I think there is more hard times to come going into 2018.

IMO, 2018 will be a buyers market. (location dependent)

 

[Cius]

It is a buyers market right now, seems to be a lot of houses on the market and not enough buyers and this from more than one estate agent I know.

Regardless I agree that it is always a good time to buy rather than rent (unless you know you are moving soon). I bought a place in late 2010, 7 years later my bond repayment is less than half the price of renting the same unit. Once I finish the bond off in 2 years time I will never pay rent or bond again I suspect and that is for the next 40 to 50 years of my life. I may do renovations etc but I still think it works out a lot cheaper in the long run than renting indefinitely.

 

[chrisc]

In Cape Town southern suburbs it is still a sellers market, but there are many greedy buggers about, trying to sell a R2m house for R2,5m and wondering why it does not move

 

[SauRoNZA]

R500K discount? That sounds like the five finger discount, lol.

Did you make somebody an offer they can't refuse, complete with a horse head in a bed?

Can you afford at least 150% of the bond payment? And are you willing to pay that?

Then there’s no bad time for you to buy.

If you can barely afford the bond payment then the time of purchase is almost irrelevant.

Will you live in it? Or rent it out?

 

[saturnz]

I just bought another property. Should get transfer by October.

But in saying that I won't buy outside of Cape Town.