Property Trends 2012

 Property Trends 2012 

There is reason to believe that 2012 will be a good year for the property market in South Africa especially in comparison to other countries which were harder hit by the recession.

Buying Property 2012

House prices and interest rates are at an all time low increasing affordability and in some areas making it even more affordable to own property than to rent, with homes prices declining and residential rentals rising. With interest rates at 9%, if a buyer has a 10% deposit and the property is under R750 000, it will be cheaper to buy than to rent. This is great news for potential first time home owners. The lending volumes however will remain the same as in 2011. making it difficult to obtain finance. Most banks are currently credit-scoring potential borrowers to make provision for a 1 or 2% interest rate increase in the future. This is a good thing for those who are approved for loans as it creates financial resilience to stay afloat should such an increase occur.

Renting Your Property 2012

Rental prices are steadily rising due to demand for quality properties especially in the northern suburbs of Johannesburg. However owners must still be cautious not to over price their rental properties.  Area plays a big role in market related rental prices, if the price of your rental property in Morningside for example is priced the same as a similar property in Hyde Park, you are overpricing. If you are using a reputable rental agent, it is their responsibility to price counsel you and ensure that the price of your rental property is market related and easily achievable. Quality rental homes offered at the right price will move quickly.

Selling Your Property 2012 

There is renewed stability in the market as sellers are starting to accept current price realities in the South African property market. If you are considering selling your property in 2012 it is recommended that you seek the services of a qualified professional agent who will be able to guide you in terms of  a realistic market related price. In 2012 estate agencies will become reluctant to take on overpriced sales. Reasonable demand remains in the property market and sellers who accept price realities and utilise the services of a professional agent, should have no problem to sell within a reasonable time at a reasonable price.

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