Six reasons to invest in residential property in 2020

Six reasons why you should invest in residential property now:

1. It's more affordable to get a home loan

Interest rates are at an all-time low. That means that the monthly repayments on home loans are lower than in previous years, making it more affordable to borrow money.

2. Costs like transfer fees are cheaper

All the extra fees that come with buying a home, such as transfer fees, are more cost-effective across the board as government and service providers work hard to help South Africans transact under these harsher economic conditions.

3. There are more properties to choose from

More stock is available in 2020 than previous years as more homeowners make a move to larger properties in this great buyers' market or let go of their properties because they've lost their income.

4. Many newly developed homes offer all-inclusive pricing

In the last few years, Cape Town saw new developments springing up in conveniently located areas around the city. Many developers have made it easier, simpler and more affordable for consumers to become owners of these homes by including transfer fees and sometimes even bond registration costs in the price of the property.

5. Properties in the first phase of development are the cheapest they'll ever be

Several property owners have been striking it lucky in recent years by snatching up homes for low prices in their initial phase of development. Often the very same properties can cost more in the second phase of development, so look out for these bargains! Get in touch with us for information on great deals.

6. You get double the benefits when you rent out your place

When you buy a property and lease it, you receive a monthly income. This income increases every year with between 5% and 10%, which means you get more and more out of your property, without having to work harder for it.

How do you overcome the fear of investing in residential property in 2020?

Few other investment opportunities offer this same certainty. Not only that, but the income you get from renting out your house will almost always increase at a higher rate than inflation if you choose a fixed interest rate on your home loan.

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