Several current indicators are providing sensible reasons to buy property on the Cape Peninsula right now, says Mike Greeff, chief executive officer of Greeff Properties, an exclusive Affiliate of Christie’s International Real Estate.
Buying now gives you an opportunity to fix your bond repayment amount at current rates. It’s unlikely that rates will drop in the foreseeable future as all economic indicators point to future increases, he says.
Greeff points to five reasons why buying now makes sense:
1. An important “tipping point” has been reached in the present market in that homes which have been sitting on the market for extended periods of time are finally selling.
Many of these homes entered the market with inflated price tags, but following a shift in sellers’ mindsets, have been remarketed at revised, realistic prices, he explains.
A number of extraordinarily valuable properties have sold in recent months in several areas of Cape Town, and while this has obviously been a boon to the respective buyers, there has been a positive spinoff for the market as a whole due to the increase in movement in the market, and therefore an increase in transactions, which has given the industry a massive injection of health, says Greeff.
“It’s a truism that sales beget sales, so the cogs of the real estate machine are turning nicely and this is important in that it also reduces fear of commitment among buyers,” says Greeff.
2. Right now would-be buyers are more confident about making informed decisions based on the economic lessons of the past six years, which strongly indicate that long-term investments are the direction to take.
“Buyers are definitely more at peace with the concept of long-term investments, and this makes it easier to take the plunge and buy the family home or get into the market for the first time with the intention of sitting tight and paying off a bond,” says Greeff.
3. With short-term returns to be found in the market, it is a good time to buy an inexpensive property in need of renovation in an affordable, sought-after area where stocks are short.
There are returns to be made as stock sells very quickly in these areas, such as Plumstead, Harfield, Mowbray, Diep River and parts of Kenilworth to name a few.
He advises investors to do their homework on prices in the area in question and to ensure that improvements do not result in over-capitalisation.
4. Buying now gives you an opportunity to fix your bond repayment amount at current rates. It’s unlikely that rates will drop in the foreseeable future as all economic indicators point to future increases, he says.
5. He says buying Cape property now is a good idea because Cape Town’s appeal is consistent and universal and currently at an all-time global high.
“Get a foot in the door now as demand from buyers looking to relocate from Gauteng and KwaZulu-Natal as well as a growing body of foreign investors will ultimately push up property values and this bodes well for anyone owning property in the region,” he adds.
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