Now is the time to buy that luxury house. Here is why:
So, 2020 did not quite turn out the way you planned, right? That is probably the understatement of the year. Yet, this does not mean that your planes need to be derailed, or that you cannot find some great opportunities waiting for you amongst all the turmoil and uncertainty. While this sweeping statement could apply to a number of things in your life, it is certainly very pertinent to any aspirations regarding the property market. If you were hoping to buy that luxury house this year that you have been dreaming of, conditions may actually be in your favour.
While things have changed abruptly in the property market, there are still familiar factors at play that work together to make it more favourable than usual to buy a luxury house right now. Below, we take a brief look at some of the highlights of the market for those who are looking to purchase a house in the luxury end of the market:
- It is a buyer’s market
This basically refers to a situation where there are more properties available on the market than there are active buyers in that market. This obviously counts in your favour when you are planning on buying a luxury house, as there are more options to choose from and these options are more competitively priced.
- Online sales act in favour of the serious buyer
The lockdown regulations have necessitated agents and sellers to take their marketing endeavours online in order to reach potential buyers. Not all buyers have, however, followed yet and started buying online, while many have postponed buying a luxury house for the time being. This means there are fewer buyers in the market to compete with.
- Some sellers are pressed for time
Because of lockdown and the initial strict regulations and uncertainty from all parties involved, there has been an extended period of inactivity in the property market. Because of this, a number of sellers are to offload – they want to sell their properties and move on. This usually also means that they are willing to negotiate.
- Property offers safe harbour in economic tumultuous times
Property has mainly proven to be a stable and reliable investment, especially over long-term periods, and especially when the economy has gone through volatile times. So, if the fluctuations of the stock market currently do not appeal to you, it is worth looking at the bargains that are currently available on the market as sound investment options.
- The lowest interest rate in almost five decades
There have already been three cuts in the South African repo rate this year, bringing it down to 3,75% – the lowest it has been since 1973. This is significant. Not only does this make credit (and thus bonds) more affordable, but it also means that a buyer can now shop for a luxury house in a typically higher bracket.
- Favourable exchange rate
The rand has taken a battering over the last couple of months, losing significant value in comparison to many leading currencies. This means that those buying with certain foreign currencies can now get so much more for their money. In fact, it is possible to pick up a luxury house at an excellent price right now.
Partner with experts to find the ideal property
While the luxury house market in South Africa is highly in favour of buyers right now, you still want to make sure that you get a good deal and invest in quality. That is what Fine & Country South Africa is here for. Our highly professional agents are experts in the local market and can guide you towards the best deals available at the moment.