With the South African interest rates at its lowest in 30 years, the property market has become very favourable for young- as well as first-time buyers. Furthermore, they have the added advantage of buying a repossessed property on auction, where they can get their hands onto a property for below market value.
Compared to interest rates during 1998 and 1999, where the interest rates changed frequently, the interest rate is now stable and low. This is good news for first-time buyers, since they can also get onto the property ladder.
On the other hand, with the many repossessed properties they can choose from, they have a great opportunity of getting their perfect first home.
Whenever deciding to buy a repossessed property, buyers need to keep in mind not to overspend on a house, and need to buy within their buying abilities. This is done to provide for any future escalations in the interest rate.
During the first quarter of 2012, the percentage of first-time buyers has increased to 25%, compared to 24% of the previous quarter. It is the second consecutive quarter it has increased, and is significantly higher than the 12% in the third quarter of 2008.
The activity of young- and first-time buyers is a clear indication that the market conditions are improving significantly.