News 30 March 2014.
Category News
Agencies in the majority of the metropolitan areas are reporting continued stock shortages in the rental market up to R12 000 and the sales market all the way up to R3 000,000.
This has created a situation of demand exceeding supply. The demand for purchasing property is heavily driven by the growing number of 1st time buyers taking up the opportunity offered by some of the country’s major banks which have once again produced a product specifically geared for that market.
Ooba one of SA’s largest mortgage originators, reports considerable increase over the previous year in the uptake of mortgages and although this is partly due to the banks restructuring their lending criteria mechanism it is also due to the growing desire of the majority of South African’s to own their own home.
Property 24 article advises:-
Your first step before entering into the property market should be saving towards a deposit.
Buying your first home requires planning and saving.
A deposit is very important as it gives potential home buyers the boost they need when applying for a home loan.
If you have a deposit to put down, the Banks will take this into account and your affordability score will rise.
Additionally, your monthly home loan repayments will be lowered and depending on the relevant Bank’s criteria, you could be able to apply for a higher bond if you wish.
Saving towards a deposit is a simple concept although it can seem difficult depending on your financial situation.
However, it is like any investment plan; it takes time and patience. Start by drawing up a budget of your monthly expenses and deciding how much you can afford to save per month.
You may have to make cutbacks on certain items, but in the end being able to put down a deposit will result in lower instalments and less interest over the loan period, making paying off your loan more manageable.
Budgeting tip: A general guideline is to aim to have 8% of the property value available as this will likely cover registration costs.
Author: Dormehl
