The FNB House Price Index is at 6.4 % August 2013 for the greater Gauteng. The House Price Index has reflected a growth of 10-15% y/y for July 2013 in Pretoria East, depending on the type of property. The current interest rate is at 5%. This is a good time to invest in property in Pretoria East. One of the reasons for this is the development taking place in the East of Pretoria.
It is not a strong market overall considering the inflation rate. Where there is positive growth it is always a good indication of the investment prospects and returns on your investment.
Banks have eased up on their lending criteria, thus enabling a few more consumers to enter the property market.
The trend seen in previous years was what was known as a sellers market which led to over-inflated property prices. This in turn affected the realistic value of property. The demand for property has not decreased as much as is perceived as a result of the new credit act that was passed in 2007. Speculative investment has not been as widespread as in previous years which have brought property prices into a more realistic value.
The benefit of these realistic prices is reflected in a more constant market. The successful sale of a property will now take in the region of 17 weeks.
There is however a huge backlog with some deeds offices which could delay the transfer process. Inquire with the relevant deeds office as to what their backlog is.
The new recreational attractions in Pretoria East (a proposed casino, hotels, and retail outlets being developed), should see many visitors to Pretoria East.
When deciding to invest in the east of Pretoria, have a look on our website. We offer many properties on display, and can arrange the best bond rates and services.