Six reasons why 2020 is a great year to buy property

South Africans enter 2020 with one of the best property buyer's markets in years - and the reasons to buy are compelling.

​The residential property market in SA is currently oversupplied in most areas, meaning price growth is likely to remain flat in the 4% range at best.

Sellers would therefore need to keep their asking prices market-related or risk not attracting buyer interest.

Here are 6 reasons why 2020 is a great year to buy property:

Oversupply
Most areas are still overstocked, so there are still plenty of excellent buys in the market.

Negotiating power
It's a buyer's market, meaning prospective buyers can negotiate strongly.

Waiting periods
Sellers who have been holding out may be more ready to sell.

Borrowing conditions
The flat interest rate and July rate cut has contributed to low borrowing costs and favourable mortgage lending conditions. Related to the above, banks are keen to lend, and first-time buyers are finding bonds of up to 105%.

Flat prices
Price growth has barely kept track with inflation and will likely remain flat for some time, which means buyers can find homes at "last year's prices". However, property does generally appreciate in value, meaning prospective homeowners can start small and renovate or customise to suit their needs.

Income potential
Homeowners can earn income from their properties by house sharing or renting out a room, flat, or cottage, or even renting out the entire property, while still retaining the asset and benefiting from the potential capital growth.

Article referenced from:
https://www.fin24.com/Companies/Property/6-reasons-to-buy-property-in-2020-20200107