Time to buy property

LONG HAUL: ‘PLAY THE LONG GAME TO SEE HANDSOME RETURNS’

Advice is to cash in on the current record-low interest rates.

Property news of late is awash with contradictory market performance projections. It seems impossible to envision the full impact of Covid-19 pandemic on the economy. However, despite vastly different views on the post-lockdown property landscape, all unanimously agree that property remains a sound long-term investment.

That’s the word from Park Village Auctions (PVA) director Roy Lazarus, who says buyers from any side of the spectrum – first-time homeowners or experienced investors – stand to benefit from the record-low interest rate.

Lazarus said: “Property investment, when entered into with the long term in mind, has and always will be a sound choice.

“Right now, the odds are stacked in the buyer’s favour. The interest rate is at its lowest in almost 50 years and the exemption threshold on transfer duties raised to R1 million. Not mention the rand’s steady improvement.

“It’s a prime time for first-time homeowners to get a foot in the door. Veteran investors know all too well how property retains and gains value over time. Just last week [8 June], Fortress Reit reported a spike in interest from potential buyers.”

Fortress Reit is a JSE-listed property group known to hold assets in logistics, commuter-orientated retail centres and industrial and office properties.

“We, too, have received an influx of inquiries from familiar faces at our commercial property auctions,” said Lazarus.

He offers advice to first-time buyers who may be excited at the prospect of having a lower monthly bond repayment than their current rental.

“Affordability is key. Be sure to factor in the costs for utilities, rates, taxes and maintenance.

“The interest rate will eventually go up and your bond repayments will, too, unless you choose to fix your interest rate. “Remember that property investment is for the long haul, you have to play the long game to see handsome returns. With that, property terms dictate that seems expensive today is ‘cheap’ tomorrow at the rate that property prices increase.”

PVA is a member of the Institute of Estate Agents of South Africa. PVA’s Property Division specialises in the valuation and disposal of properties. – Citizen reporter

Property retains and gains value over time

For more information contact Park Village Auctions on 011-789-4375 or go to