Knock Knock!

It’s over.  The much talked about the election is behind us.  And it couldn’t have come a moment too soon.  Since December 2017 the country has been in a state of limbo and unable to deal with the economic pressures facing everyone.  For whatever reason, everything was said to have hinged on this election.  It became a reason for procrastination.  And now it’s a thing of the past.

The reality is that, whatever the outcome of an election, life will carry on.  It doesn’t matter who rules a country, every family needs a roof over their heads.  There will always be a need for property.  It’s true that property markets, like all markets, have their cycles.  Investors will tell you that the key is to buy low and sell high.

Well, guess what?  If you buy today, you’re buying low.  There is no question that the property market has felt some paid over the past few years.  Sellers who have needed to sell have done the right thing and listened to the market.  Property prices are exceptionally attractive in most markets.

Unlike most other downward markets (such as the Global Financial Crisis), in today’s market, you are able to obtain bank finance to purchase your property.  In fact, banks have a healthy appetite for home loan finance.  Interest rates are favourable and are expected to remain unchanged this year.

When you consider that prices are realistic and finance is obtainable, the only question that remains is “What are you waiting for?”  There’s no benefit to using the election as a reason to wait and see.  It’s come and gone.  Your opportunity to invest is here and it’s never been more attractive!  Think of the investors with foresight who bought in 2009/2010 and who sold in 2016.   Weren’t you sorry you didn’t?  Don’t wake up in 2021 and regret that you missed the boat.

Coincidentally, here in Brisbane from where I’m writing this, Australia is also poised for an election.  As in South Africa, many buyers have been holding off to see what happens in the election and the market is feeling it.  But as in South Africa, the election will come and go, and life will carry on.

Irrespective of political, economic, and social factors, if you have a need to upscale or downscale your property the best time to do it is now.  If you’re selling, then meet the market to get a result so you can move on with your plans in life.  If you’re purchasing, then make a fair offer and secure the property that you and your family require whilst taking advantage of the banks’ desire to finance.

If you’re an investor then, to be frank, I’m not sure there’s a more attractive investment vehicle than property at the moment.  Prices are realistic and you can gear your investment with bank funding.

This market has “opportunity” written all over it.  What will you do?  History shows you only benefit when you take the opportunities that present themselves.  Knock knock.

 

Steve Caradoc-Davies

General Manager
Harcourts International

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