I know its a buyers market at the moment, but is it better to buy that property now, or wait till next year to buy? Interest rates are bound to go up again. Do you think property will be any cheaper next year?
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Property Market
- Thread starter Viper25
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Hoof-Hearted
Expert Member
If you had been planning on buying around now anyway... then take your time, look around for a bargain and buy now. There are plenty people out there desperate to get out of their properties at the moment.
when interest rates start to fall, prices are going to climb again
Make sure you can afford another 3% interest rate increase(just in case
) and remember most banks are going to expect a deposit plus you'll have to pay costs cash
when interest rates start to fall, prices are going to climb again
Make sure you can afford another 3% interest rate increase(just in case
) and remember most banks are going to expect a deposit plus you'll have to pay costs cashIf you had been planning on buying around now anyway... then take your time, look around for a bargain and buy now. There are plenty people out there desperate to get out of their properties at the moment.
when interest rates start to fall, prices are going to climb again
Make sure you can afford another 3% interest rate increase(just in case
Thanks for the advice. Yup, i have been looking around quite a bit. I have a deposit, but its not that huge.
onebrickshort
Senior Member
Sort of. But the market we are seeing is unprecedented. House prices (at least in the Cape) haven't shown much downward trend from the looks of the latest weekend property page prices.
I think part of the problem is that homeowners are hanging on because they have access bonds and if they sell they won't get another bond to the same value as their current one as easily.- if at all. Something like more than 40% of all new bond applications were declined by banks last month.
If I was a buyer, I'd stick around for another couple of interest rate hikes, when pressure will be at breaking point, then move in for the kill
Yup, heard on the radio that majority of bond applications are being turned down.
Also, the higher the interest rate, the lesser you qualify for. So its a tricky situation when you wait for interest rates to go up.
All in all, the market is really messed up right now.
Ou grote
Honorary Master
LancelotSA
Banned
This is merely a reflection of the sellers wanting too much.... have you also noticed how the same places are appearing week after week after week. As stated elsewhere they are forced into this position too as they are probably fully bonded and are needing to sell at those prices just to cover the outstanding bond.
Some people are in the dwang for over extending themselves. The reason for it being a buyers market is that a lot of these people are being forced to sell as they cannot afford the repayments now. It is a matter of sell or the bank is going to step in and take it back!
EDIT : To the OP just be careful this does not become you, so like someone said factor in another few percent interest rate hikes and see if you could still afford the repayments before buying...