Cape Town’s resilient property market is on the up again
The surge in first-time buyers entering Cape Town’s property market - a notable 3.3 times more than this time last year - augurs well for a gradual house price recovery in the next few months.
This is the word from Dr Andrew Golding, chief executive of the Pam Golding Property group, and according to FNB economist Siphamandla Mkhwanazi, the latest property barometer of sub-regional indices (August 2019) shows that first-time buyer activity has increased in Cape Town, largely because of the shift towards more favourable pricing.
FNB also reports that buy-to-let activity is also picking up - yet another factor paving the way for a market recovery. Currently, this sector of the property market accounts for 10.6% of total sales, according to FNB.
What to do after your final home loan repayment
The final repayment on your home loan is a long-awaited victory 20 to 30 years in the making. But, while most have us have been dreaming about this day from our very first repayment, most of us fail to consider what will happen thereafter.
According to Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, homeowners have one of two choices to make: either make the last repayment and close the home loan facility or continue to pay a monthly admin fee in order to keep the home loan facility open as a readily available line of emergency credit.
Opportunity in residential property market as construction sector falters
News headlines over the past 18 months or so have shown that the construction industry is under immense strain, with some of the biggest and most well-known construction companies among those who are in business rescue or liquidation proceedings.
This means that there will be fewer construction companies operating in the market, meaning less development, and the development that does happen will come at a higher price. This is according to Chris Renecle, MD of Renprop, who believes that the decrease in construction companies operating in the market actually presents residential property investors with some good opportunities.
“When the market turns which we expect to happen sometime in the next 12 to 36 months, the inflation on construction will be above the normal rate of inflation by virtue of the fact that there are fewer building service providers able to cater to the growing demand.”
What you need to know about buying and renovating an older home
While it has become a major trend to buy an older home for renovation or restoration purposes, some homes can be a nightmare to repair and to renovate despite being reasonably priced and being perceived as ‘offering good value for money’.
Trevor Sturgess, Seeff’s MD in Kibler Park, says buyers should watch out for tell-tale signs when it comes to older property that will either assist in picking up a good deal or biting off more than they can chew. It is extremely important to look for signs of leaks as older homes often have old water pipes that have rusted over the years. These pipes will eventually burst because of the water pressure, and a plumber would need to replace all the pipes. This can be both pricey and time consuming, says Sturgess.