Women should start in­vest­ing in prop­erty

George Herald - Private Property - - Property News -

With Au­gust be­ing Women's Month in South Africa, there is no bet­ter time for women to think about buy­ing homes of their own or be­com­ing prop­erty in­vestors, says Ger­hard Kotzé, MD of the Realnet es­tate agency group.

"One rea­son is that there are cur­rently more prop­er­ties for sale in most ar­eas than prospec­tive buy­ers and that prices are ac­cord­ingly very ne­go­tiable," he says. "In fact, more than 90% of sell­ers cur­rently have to drop their ask­ing prices by around 10% to achieve a sale, so there is a good chance of be­ing able to pur­chase more home than you ex­pected for the money you have avail­able."

An­other rea­son to buy now, he notes, is that it is rel­a­tively easy to ob­tain a home loan. "Of course you need to have a steady house­hold in­come and a good credit record, but the banks are cur­rently keen to lend to home buy­ers and are of­fer­ing good in­ter­est rates.

"This is es­pe­cially true if you have al­ready saved up a de­posit and if you ap­ply through an orig­i­na­tor like Bet­ter­bond, which is cur­rently able to get ap­proval for 80% of the home loan ap­pli­ca­tions it sub­mits."

Thirdly, says Kotzé, there is high and grow­ing de­mand now and in the fore­see­able fu­ture for rental prop­er­ties, "which makes this a good time for women to be­come prop­erty in­vestors and start ac­quir­ing rental homes that will pro­vide them with cap­i­tal growth along with an in­de­pen­dent in­come stream".

Look­ing be­yond the cur­rent eco­nom­ics, he also says that a sur­vey con­ducted by Pri­vate Prop­erty last year showed that women are in fact al­ready the ma­jor de­ci­sion­mak­ers when it comes to prop­erty pur­chases, with 51% mak­ing the de­ci­sion by them­selves or on be­half of a part­ner.

"Women also out­num­ber men when it comes to sin­gle buy­ers, ac­count­ing for an es­ti­mated 10% of to­tal home pur­chases com­pared to 7% made by sin­gle men, and we re­ally hope to see this trend ac­cel­er­at­ing now as more women in South Africa move into top govern­ment and cor­po­rate po­si­tions or set up their own suc­cess­ful busi­nesses.

“Prop­erty own­er­ship is after all one of the strong­est ex­pres­sions of fi­nan­cial in­de­pen­dence - and the sense of em­pow­er­ment and per­sonal se­cu­rity which that pro­vides."

Is­sued by Realnet

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