2022: Still a great time to buy property

While the historically low interest rates of 2020 have started to rise, would-be property buyers should not be deterred. Jawitz Properties examines a few of the factors making 2022 an ideal time to buy property, including a healthy appetite for risk on the part of South Africa's banks, all the advantages of semigration and the proven resilience of property investments.

A healthy appetite for risk among South Africa's banks

The good news - especially for those looking to buy their first property - is that various South African banks are currently willing to offer home loans of up to 105% of your purchase price. While these 105% loans are only available if you're buying property for R1.8 million or less, they can provide a lifeline for first-time buyers. It is important to be aware of the monthly costs of a 105% home loan, but this offering is a significant factor making 2022 a favourable time to enter the property market.

Anyone applying for a home loan needs to be aware that different banks could potentially offer you different rates - and some banks may accept your application even if others have rejected it. The best way to apply for a home loan is to do so through a bond originator. This way, you fill in one set of paperwork and your application is sent to all the banks to ensure that you get the best possible deal. Using a bond originator also means you get the best possible advice on matters such as gathering the necessary documents, clearing your credit record and ensuring that you start your property hunt with a clear understanding of how much you can afford.

While 100% and 105% loans are available, buyers should remember that saving up a deposit will likely mean getting access to preferential interest rates.

Semigrating can give you lower rates, more space and more natural beauty

If you're already a homeowner and you're considering becoming a repeat home buyer, you're not alone. The pandemic has shown us just how important having space at home is, and it has also led to an unprecedented number of people working from home and therefore needing home offices. Over and above this, it has led people to make their dream of moving out of big cities and into smaller towns and idyllic homes - particularly along our beautiful coastline - a reality.

The semigration trend remains strong in 2022, and among those who do need to be near an office, properties that offer lifestyle facilities like gyms and workspaces are sought after. Sectional title properties - and especially those located within estates - remain exceptionally popular among both semigrators and those moving within South Africa's urban hubs.

Other factors currently driving the property market

In line with global trends, South African banks are providing credit as part of a strategy to support economic growth. Here are some other reasons why 2022 is still an ideal time to buy property:

• While the interest rates have risen, each increase has been 25 basis points, which adds only approximately R150 to the monthly repayment on a bond of R1 000 000. These small increases are unlikely to deter a determined property buyer if they are considered in context.
• The transfer-free threshold is still R1 000 000, meaning that if you buy property for less than this, you will not need to pay transfer duties.
• Many employers have embraced the flexible working environment that COVID-19 necessitated, meaning that an increasing number of people are no longer tied to an office. This means that property sales will continue to thrive, especially in coastal cities and towns.
• Even in the light of a pandemic, property has emerged as a strong, resilient investment.

The first step towards taking your first step - or your next step - on the property ladder is to find a #RealPartner who will guide you through every step of the process. You can trust the Jawitz Properties team to help you find your next investment. Contact us today.