Page 11 - March 2021

The market is favorable
To everyone’s surprise, the effects of the
worldwide COVID-19 pandemic were not all
negative. With the world doing its best to
cope and recover from the negative effects
of the pandemic, the South African property
market has been rife with activity. This is
due to the repo rate cuts that were
introduced by the SARB (South African
Reserve Bank) in March, April, May, and July
of 2020.

These cuts have given many people the opportunity to reevaluate their affordability based on
the record low 7% prime interest rate, the lowest it has been in the last 5 decades.

These rates have resulted in property practitioners taking on an abundance of enquiries by
first-time buyers. The R2 Million and below property market seems to be flooded by not only
first-time buyers but also those looking to expand on their current portfolio.

For those looking to invest, sooner would be better than later, with caution. Do your research
and look at the area in which you are buying. Is it within the budget you have available to
you? Look at the tenants in the area you are looking to buy in. Are they good tenants? Are you
buying in an area with room for growth? Are you buying you forever home or buying to rent?
Will your rental income cover the bond? How much are you prequalified for? Do you have a
qualified real estate practitioner by your side?

If you are able to take the leap and get your investment property pre-mid-2021, your property
should see a huge increase in value as early as the third quarter of 2022.

Buy Safe, Buy Smart, Buy Seeff

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