It's still a good time to buy property

By Staff Writer

The residential property market is recovering and showing increased pace in its price growth - according to First National Bank's (FNB's) Property Market Analytics.

The report said that April was the first month in two years to show a double-digit house price inflation and FNB property expert John Loos believes that, despite the rising prices, it's still more affordable to buy a home than it was about a year and a half ago.

Loos believes that the interest rate cut and some wage inflation - purchasing a home has definitely become easier. "Last year, house price deflation and ongoing wage inflation had the effect of making homes more affordable."
Loos added, though, that this is unlikely to last and the real growth in house prices will end this trend rather quickly.

According to FNB's house price index there was an increase to 10.1% in April, from 8.1% in March and the average house price was R790 087.

"It's still a relatively good buying time as there's still a lot of distressed selling," said Loos. "If your finances are in order, it's a good buying time."

Prospective home owners
have to keep in mind though, that electricity hikes, municipal rate increases and a growing concern about access to clean water will all have an impact on affordability. This then means that smaller and cottage type homes will be in higher demand than large, extravagant homes with extras like swimming pools and large gardens since these will use vast amounts of electricity.

Buying property can be quite tricky so read the Justmoney.co.za guide to home loans before you make the decision or, if you have already found your dream home and you need to apply for a home loan - simply fill in the form and a trained consultant will get in contact with you.

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