Con­di­tions seen as ideal for buy­ing

Business Day - Home Front - - HOMEFRONT -

GOOD TIME One of the old­est max­ims in prop­erty deal­ing — sell when oth­ers are buy­ing, buy when oth­ers are sell­ing — is widely ac­knowl­edged to be right, and is widely ig­nored, says Ja­son Lee, Raw­son Auc­tions’ le­gal ex­pert and strate­gist. “Right now there could be no bet­ter time to in­crease your prop­erty port­fo­lio. The prices are down, many sell­ers are des­per­ate, the banks’ rates are low and rentals are good. What is more, the banks are now look­ing pos­i­tively at first time home­buy­ers and, more fre­quently than most peo­ple re­alise, are pre­pared once again to give 100% bonds pro­vided the ap­pli­cant has a clean credit record.” Those de­cry­ing the po­ten­tial of the cur­rent mar­ket, said Lee, are of­ten spec­u­la­tors who bought in the ris­ing mar­ket of 2006-2007, are overex­tended and now are un­able to sell at a rea­son­able price or to ser­vice mul­ti­ple bonds.

By con­trast, those who do buy now will of­ten find that from the out­set they can achieve dou­ble-digit or near dou­ble-digit rental re­turns.

With so many for­mer home own­ers now forced to rent and with only limited new stock com­ing off the pro­duc­tion line, rents can only rise fur­ther in the next year or two.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.