For first-time property buyers in South Africa, stepping into the market is an exciting yet daunting experience. With fluctuating property values, regional market differences, and unique legal requirements, the process can be complex. Antonie Goosen, principal and founder of Meridian Realty, shares his insights on what new buyers should consider to make informed and sustainable decisions when entering the property market.
READ | Looking for a home that ticks all your boxes? Try Property24 Alerts
According to Goosen, one of the most crucial elements for first-time buyers is to consider the long-term implications of their purchase. “Buying property isn’t just about meeting your current needs; it’s also about considering how the home will fit into your future plans. This includes its potential resale value and how easily it could attract buyers down the line,” he says.
While first-time buyers may be focused on affordability and functionality, he advises them to think ahead about what they may want from the property in five or ten years. “Think about how your family or career needs might change, and try to choose a property that offers room for growth,” he adds.
Location is a critical factor in determining a property’s long-term value. he emphasises that buyers should prioritise established or developing areas with good access to amenities, quality schools, and safety features. “Location is one of the most influential factors in determining a property’s value,” he explains. “A well-situated home not only enhances your living experience but also offers stability in property value.”
Moreover, Goosen suggests examining future development plans for the area. “Infrastructure upgrades, new business hubs, or public transport routes can boost property values, while new industrial zones may have the opposite effect. Do your research or ask your estate agent about upcoming developments that could impact the area’s appeal.”
READ: Navigating property investment for wealth building: Benefits and pitfalls
For first-time buyers, understanding whether a property is fairly priced can be challenging. Goosen advises using comparative market analysis and working with a reputable agent. “An experienced agent can help you assess comparable properties in the area and offer valuable insights into pricing. This way, buyers can ensure they aren’t overpaying in a competitive market,” he notes.
While online tools provide price estimates, Goosen reminds buyers that these figures are not always reliable. “In-person assessments by agents are often more accurate because they account for the property’s unique features and condition,” he explains.
Though selling may be years down the line, Goosen encourages first-time buyers to consider factors that will make a property attractive to future buyers. Features like energy efficiency, good security, and functional layouts can have lasting appeal regardless of market trends. “These qualities tend to remain important to buyers and can enhance your home’s resale value,” he notes.
READ: How to ensure you make a good property investment
He also highlights the importance of budgeting for additional costs that extend beyond the purchase price. “Many first-time buyers forget about transfer fees, bond registration fees, and ongoing maintenance. Planning for these from the start prevents financial strain and ensures you’re fully prepared for homeownership.”
Finally, he suggests working with a knowledgeable estate agent who understands the intricacies of the local market. “A good agent can offer invaluable guidance, helping first-time buyers avoid common mistakes and making sure they find a home that aligns with their budget and needs,” he says.
In summary, first-time buyers in South Africa can set themselves up for success by considering long-term implications, prioritising location, ensuring fair pricing, and seeking expert guidance. “Property is one of the most reliable ways to build wealth,” says Goosen. “By making informed choices, first-time buyers can find a home that meets their needs now and continues to benefit them in the future.”
READ: Tips for beginner property investors
Arnold Maritz, Co-Principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs and False Bay, shared the main advantages of real estate investment.
Cash flow: Unlike many other investments, real estate has the ability to generate cash flow, either in the form of profit once you’ve paid off your mortgage or as rental income, whether from an income-producing flatlet on your primary residence or from separate properties. Cash flow from real estate is also far more stable and predictable than most other businesses.
Ability to appreciate: Generally, the value of properties appreciates with time which means that the longer you’ve owned property, the more it will be worth, making it the ideal nest egg.
Tax concessions: As a real estate operator, you’re able to deduct items such as interest and maintenance over time as business write-offs.
It gives you leverage: By consistently servicing the mortgage, you have the opportunity to tap the equity that you have built up and if you own multiple properties or buildings with several units under one roof, you have the option to cash out at any time.
Loan pay-down: When you buy a property with a mortgage in order to rent it out, your tenant is paying at least part of the monthly bond repayment, which means your property is essentially a savings account that grows automatically without you investing very much more – if anything at all.
Hedge against inflation: When inflation increases, so does your rental income and often your property value as well. In other words, when the cost of living goes up, so does your cash flow.
Want all the latest property news and curated hot property listings sent directly to your inbox? Register for Property24’s Hot Properties, Lifestyle and Weekly Property Trends newsletters or follow us on Twitter, Instagram or Facebook.
Print
