According to property developer MSP Group's CEO, Riaan Roos, the 450 basis point interest rate cut since December 2008, has bolstered confidence in the residential property investment market.
"Property investment works in cycles - we are at the end of the downturn and sharp investors know, to buy now. This is where fortunes were made in the past and will be made in the future," says managing director, John Coetzee.
"In 2008 when most developers were slowing activity and downscaling due to the global financial crisis, the MSP Group announced a successful BEE equity deal which positioned the Group as one of largest property developers in Southern Africa. This allowed it to capitalise on the negative market conditions," says Coetzee.
The Group's strategy has focussed strongly on securing prime development opportunities which represent good value propositions.
"We have seen a sudden surge in buyer and investor interest. Investors are now able to purchase brand new properties for highly competitive prices," says Coetzee.
He says first-time buyers should now be able to enter the property market due to low price points and a declining interest rate. Coetzee sites one of the MSP developments Broadlands Village in Strand as a perfect entry-level purchase with some banks offering 100% finance through packages aimed at first-time buyers.
"We are hopeful that the major banks will further relax their criteria regarding their lending policies particularly towards new home owners," says Coetzee.
MSP intends to roll out two new residential projects in June and July. "We have spent months planning these projects and both are well-positioned - one being within minutes from the Sandton CBD and the other in Somerset West," says Coetzee.
"This is a buyers' market. The tide is turning and both first-time buyers and investors must take full advantage of the current market conditions, whilst they can," says Roos.
For more information contact Martin van Rooyen on 083 452 6909 or send an email.
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