What will your property be worth in 12 or 24 months?
SA Property News:
Two years ago Home Owners were enjoying the benefits of fairly prolonged property boom in South Africa. In 2004 property prices were increasing at more than 35% every year, interest rates were at record lows and demand for houses for sale was out weighing supply.
Fast-forward two years to 2006 and you’ll see a new picture in the local property market. While property prices continue to increase, according to ABSA latest property price index, the rate of increase has slowed dramatically. House price growth is now only at about 13% and many property experts say the rate of growth will continue to drop.
Why is the growth of your property value slowing?
Well, the recent interest rate hikes have forced many would be buyers into the rental market as mortgage repayments are now higher and expected to get even more expensive rates continue to rise.
Herschel Jawitz, CE of real estate group Jawitz Properties, told the BusinessDay that he expected the recent interest rate hikes to “further the continued slowing down in the residential market”.
From a buyers perspective, you may being to find more bargains appearing in the property market as investors begin to sell their rental properties.
Jawitz said the recent hikes would continue putting speculators in the buy-to-let investment market “under pressure” because the capital gains “were no longer enough to offset issues around negative cash flows and low yields”.
Category : Property News