More Property Bargains beginning to appear
Property News
While searching through the latest lists of Houses For Sale in your area you should begin to find a few more bargains. According to ERA South Africa CEO Gerhard Kotzé, property investors are having to sell their Rental properties as higher interest rates begin to reduce their rental returns.
A combination of overstock in the Rental market and higher interest rates have resulted in Property investors having to pay higher mortgage payments while at the same time having to lower the rental demands.
This could be the ideal time to keep an eye out for some real bargains. As many buy-to-let investors begin to feel the pinched of being over invested and having to manage high bond repayments you could swoop in and snap up a property that holds lots of potential.
For the investor, Kotzé suggests, holding on you’re your rental property during this rough period.
“…some investors are now being obliged to sell off their rental stock and bargains are beginning to appear — and therein lies a great opportunity for those who have the courage to sit out what I am convinced is a temporary slow-down of the rental market,†Kotzé says.
“There is still an over-supply of rental stock in certain areas and price brackets, so extreme selectivity is required,” he says.
“However, rising interest rates are sure to boost the demand for rental property and if they choose wisely now as regards price, location an security, investors can expect to see very decent returns even in the medium term.”
Category : Property News &Property Tips
Gideon - www.protego.co.za
Jun 17, 2008
For the investors the best course of action is definately to try and hold on to your portfolio if interest rates are strating to squeeze. Any property bought last year at market value and sold this year will in all likelyhood realise a loss when transfer duties and agent fees are taken into consideration.
If you need to sell then price agressively. It is a buyers market and no time to go ‘fishing” for a price.
For those investors looking to buy this is indeed a wonderfull time! Keep a look out for great value deals. When you see one – make an offer! The properties that are priced to sell still sell in this buyers market and fairly quickly I might ad.
Happy investing! Gideon