By Anja van den Berg
Buying property is never a decision to be taken lightly and can have long-term ramifications. Real Estate Agent Jabulile Lefu of JL Properties answers the most common property questions concerning buying during tough economic times like these.
Advantage: It is a buyers’ market due to low-interest rates. According to home loan consultants, this is set to continue for at least 18 months. It is now cheaper to buy than to rent. Generally, a buyer’s market means that many buyers are looking to purchase, which is a favourable seller position.
Disadvantage: Uncertainty of employment and income. The COVID-19 pandemic has led to several people losing their jobs.
Buyers should do their homework thoroughly before signing on the dotted line. Consider the following:
Lefu says that it isn’t advisable to buy property on a fixed interest rate term. Your monthly repayment stays the same throughout the agreed period. Yet, the fixed rate will revert or be reviewed once the term ends, which is sometimes after one to two years. “The reviewed rate is always higher,” Lefu adds.
Source:
East Coast Radio: https://www.ecr.co.za/lifestyle/house-home/covid-19-pros-and-cons-buying-property-during-tough-economic-times/
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