When will properties be on special?

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Gtx Gaming

Gtx Gaming
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Stocks are down, when can I purchase a house for cheap? lol

I would guess I would need to wait interest rates to be hiked due to inflation that will be caused by weaker rand?
 
Very unlikely, there is a chasm between buyer and seller expectations. My suggestion is to monitor properties that you like and wait for price reductions. But at the most you will see is a 20%, which brings it almost realistic prices. And no its not the agents fault. Sellers can be very demanding with their price expectations
 
Wait for Covid-19 to settle in, there will be plenty empty properties on sale
 
Just go offer what you want to pay. Eventually someone will say yes.
 
Gtx Gaming said:
Stocks are down, when can I purchase a house for cheap? lol

I would guess I would need to wait interest rates to be hiked due to inflation that will be caused by weaker rand?
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Property is already down for the past year or more from my observations, press on it is just kept on the down-lo.
 
Gtx Gaming said:
Stocks are down, when can I purchase a house for cheap? lol

I would guess I would need to wait interest rates to be hiked due to inflation that will be caused by weaker rand?
Click to expand...
I see you can buy a distressed seller's house on the FNB app now
You should check it out (if you're an FNB customer)
 
It depends.

There may be desperate sellers (with large bonds), but they may not want to suffer losses. You are still stuck with the bond amount outstanding even if you sold the property
Elderly who has paid off their bonds will only sell if downsizing, and this crisis will mean little to them.

Generally you may have to wait for the interest rate to shoot up to 20% for you to be able to buy, but then you will also be charged 20% interest rates, unless you are a pure cash buyer.

Unfortunately this will have little effect on the under R2 million rand market, as those are the easy sellers. (ie grannies downsizing, etc. ) It will be more in the R2-5 million market where the people will suffer. As most in that range will sell, to buy a more affordable sub R2 million house.

In some areas, sub R2 million houses currently sells in 3 days average.

Then there is also low cost housing being built in Pinelands. Bachelor for R950k, 2 Bedroom R1.89mil. Let alone the price growth where century is pushing prices to R5 million.

Yip I would suggest you need to stretch to buy soon. Perhaps look Oostersee side.
 
The problem with some distressed sellers or buying at an auction. You are liable for all outstanding debt on that property. So if they ran up rates bill of R100k. You would first need to pay that off. It may seem cheap, but in some cases it's really more costly. You also dont have any guarantee protecting you as you buy the house voetstoots with all defects.
 
Think with the global panic, and the local panic because of ewc, eskom, etc. etc., Now might be a good time to buy low.

Corelli said:
The problem with some distressed sellers or buying at an auction. You are liable for all outstanding debt on that property. So if they ran up rates bill of R100k. You would first need to pay that off. It may seem cheap, but in some cases it's really more costly. You also dont have any guarantee protecting you as you buy the house voetstoots with all defects.
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High risk high reward
 
Gtx Gaming said:
Stocks are down, when can I purchase a house for cheap? lol

I would guess I would need to wait interest rates to be hiked due to inflation that will be caused by weaker rand?
Click to expand...

Interest rates are only going to go down, not up.
 
Gtx Gaming said:
Will check out.

Still can't find decent house for under 1.25Million in parow lol
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For that budget you won't get a decent house in just about any location.

You are looking at atleast 1.5m for a 3 bed place on a 500m2 erf
 
The demand (due to urbanisation) in major cities has increased. Supply has pretty much stayed the same, and rent & property prices have also stayed more of less the same IMO.

The only place you can find "real" specials are on upper end homes currently, cuz no one wants to buy them. I have seem quite a few homes in the R7m - R30m price range staying vacant for years on end and prices reducing by massive margins.

Middle class homes in the burbs are a pretty safe bet still for both buyer and seller and I cant see prices drastically reducing unless you have a seller with unique circumstances.
 
The growth has been in the sub R1 Million market.
In areas near me they are building several developments, one I know is only going to be for rental based on some Dutch Business Model apparently, one is going to sell for just shy of R900000 per unit plus costs.
Below R1 Million and there are no transfer fees I have been told.

While there is no growth there, but coastal properties outside the major cities like Cape Town are extremely cheap at the moment and have been so for some time. I don't think this situation will last too much longer so possibly time to jump in. Homes that would cost you R2 or R3 Million to build are selling for huge discounts to replacement costs. Many of these homes were built during the late 70s, 80s and 90s and were built well with good materials at that time. With some modernising and maintenance you can transform these gems into your second property, holiday home or retirement place for a fraction of what it would cost to build today.
Interest rates are purported to be coming down again this week and it's still a buyers market. In 2 or 3 years time you will look back and say, why didn't I take the plunge.
In my view there are a couple of caveats here. All municipalities, DA ones included are sucking property owners each year with finely tuned utility bills in their favour which exceeds inflation. Rates are regulated but everything else we have to suck up. Even holding empty plots costs a chunk of change each month. We had a plot along the garden route and there were availability charges for everything, including the fire department. It's ridiculous. The other problem is security with coastal properties. The informal settlements around these places are growing exponentially and crime with it. Be sure to have a good alarm system if you take up a coastal property in a good location.
 
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deweyzeph said:
Interest rates are only going to go down, not up.
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You see there is the predicament. Interest rates will now go down, to allow people to cover the costs, but afterwards companies would have lost billions, and will start retrenching. They are already looking into it. People will be jobless, it will end up in a depression, then the currency will devalue more, South Africa moves into Junk, and interest rates will skyrocket as will inflation.

At the moment we are in the quite before the storm.

But like I said. The sub 2 million market will hardly see a special. The plus R2 million market is where there are bargains.

You may find areas like Bothasig, Edgemead, Monte Vista, Parow North, Oostersee at bargain prices. But if you look on property24, even a lot of these areas are on the way up.
 
Corelli said:
You see there is the predicament. Interest rates will now go down, to allow people to cover the costs, but afterwards companies would have lost billions, and will start retrenching. They are already looking into it. People will be jobless, it will end up in a depression, then the currency will devalue more, South Africa moves into Junk, and interest rates will skyrocket as will inflation.

At the moment we are in the quite before the storm.

But like I said. The sub 2 million market will hardly see a special. The plus R2 million market is where there are bargains.

You may find areas like Bothasig, Edgemead, Monte Vista, Parow North, Oostersee at bargain prices. But if you look on property24, even a lot of these areas are on the way up.
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Indeed that areas I am looking at, there some decent properties in brackenfell which I don't mind, but such mission to get on the N1 :(
 
Corelli said:
You see there is the predicament. Interest rates will now go down, to allow people to cover the costs, but afterwards companies would have lost billions, and will start retrenching. They are already looking into it. People will be jobless, it will end up in a depression, then the currency will devalue more, South Africa moves into Junk, and interest rates will skyrocket as will inflation.

At the moment we are in the quite before the storm.

But like I said. The sub 2 million market will hardly see a special. The plus R2 million market is where there are bargains.

You may find areas like Bothasig, Edgemead, Monte Vista, Parow North, Oostersee at bargain prices. But if you look on property24, even a lot of these areas are on the way up.
Click to expand...

Is property24 a good place to advertise, I mean do people with money search there for properties. We are looking to sell a commercial property in the Cape Town CBD and are considering using property24 as well.
 
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