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We are living in a luxury home – is it a good time to sell?

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Q: We are thinking of selling it in order to downscale. We are not that positive, though, about the state of the housing market. Should we sell anyway and possibly cut our losses or will the market improve?

A: At 45.49%, the largest percentage growth in the number of formal bond grants approved for the 12 months ending August 2021, were for homes with a purchase price of more than R3 million.

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There’s been a further 38.7% increase in the number of formal bond grants for homes of between R2.5m and R3m. While much of the bond activity recorded last year after the easing of lockdown restrictions in June was from first-home buyers, we are seeing that buyers at the upper end of the market are also making the most of the low interest rates.

BetterBond’s applications for the 12 months ending August 2021 show an almost 4% increase in purchase price and an increase of just over 5% in the purchase price for first-home buyers. The FNB Property Barometer says much of the extended mortgage credit is being used to fund the middle-to-upper price segments. – Carl Coetzee, chief executive of BetterBond

Q: As a landlord, I have been under financial pressure due to the state of the rental market. I have managed to hold out but am considering selling my properties. This is not something I want to do but I feel I may have little choice. Do I have any reason for hanging on? A: Tenant arrears and vacant rental properties are showing signs of recovery. If you can wait it out a little longer, the housing market (and property inflation rates) will continue to recover. Bowing out and placing rental properties on the market could have an adverse result, especially if sales stock floods the market. – Paul Stevens, chief executive of Just Property

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