One of the largest transactions we may ever make during the course of our lives is the purchase of a home. Some of us may even be fortunate enough to experience this landmark event a handful of times. Whatever the case may be, there is usually one key question that we all ask ourselves as we embark upon the journey to homeownership; is this property a good investment and what will it be worth in 5, 10, or even 20 years?
Property is an asset
With the Covid-19 pandemic here to stay for the foreseeable future and interest rates at their lowest levels in half a century, conditions remain extremely agreeable for savvy first-time buyers in the under-30 age group. They are eagerly jumping at the chance to exit rentals in favour of homeownership, especially as it is now possible to pay less for a mortgage bond than a rental property. This is the first step towards building financial wealth early on. Over time, financial discipline and market appreciation, the investment will yield a return and is considered to be an asset.
Building wealth
With working from home now more the rule than the exception, we are seeing established homeowners in the 35 to 55 age group taking advantage of this status quo to improve work-life balance by purchasing properties containing integrated living and working spaces that are better geared towards the new remote reality. This accounts for increased property investment in sought-after properties which can provide the required amenities and lifestyle in desirable locations across South Africa while yielding a capital return.
Is now a good time to invest in residential property?
Despite the prevailing economic climate, surprisingly the property market is showing resilience and even signs of improvement. Pent-up demand seen earlier this year has held and while market appetite slowed slightly during the recent lockdown it is anticipated to revive and escalate towards the end of this year.
Nonetheless, as with any investment, the answer lies in increasing your knowledge and understanding of the residential property sector and making sound decisions to reap the financial rewards.
Leadhome Properties, your trusted advisor for all property-related information, continues to innovate by combining a ProTech and ProTouch approach to sell property 31% faster.
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