Top players in the industry give advice
For buyers and sellers transacting over the next few months, the advice from property experts is simple: This is a buyer’s market, so if you don’t have to sell, don’t, says Herschel Jawitz, chief executive of Jawitz Properties.
Buyers must budget correctly for their bond repayments and factor in a 1% or 2% increase in their interest rate charges, advises Harry Nicolaides, chief executive of Century 21.
Sellers need to be realistic. If you are taking a hit on your current sale, there is opportunity in the onward purchase. Everything is relative, says Richard Hardie, chief executive of Knight Frank South Africa.
Understand your needs and gauge them against the market activity in your desired areas is the advice from Richard Gray, Harcourts Africa chief executive.
Sellers should guard against holding out for unrealistic prices as it will take time before a market upturn, according to Samuel Seeff, chairman Seeff Property Group.
Prospective buyers are encouraged to save as much as they can so they are in a position to pay a substantial deposit when applying for a home loan, says Mike Greeff, chief executive Greeff Properties.
Property buyers must not overpay because, in the shorter term, prices may not increase as much as they have in the past, says Andrew Golding, chief executive Pam Golding Properties.
Prospective buyers must work wisely with their money now so they are ready to purchase should we enter a full recession and should property prices drop, says Adrian Goslett, chief executive of Re/Max of Southern Africa.
Buyers must buy a little lower and pay off as much debt as they can while interest rates are favourable is the advice from Tony Clarke, managing director of the Rawson Property Group.
Buyers and sellers should not make emotional decisions, but rather look objectively at their own financial risk and their mobility options, says Paul Stevens, chief executive of Just Property.
Homeowners who are already feeling financial pressure should consider selling sooner rather than later to avoid defaulting is the advice from Chris Tyson, managing director of Tyson Properties.
Prospective buyers should be fully aware of their financial positions and live within their financial means, warns Jacques du Toit, Absa property analyst.