Good news for buyers: SA Interest rates at an all time low!

If you are considering the purchase of a property, then now is the time to act. The prime South African interest has fallen to a low of 10.0% - the lowest prime rate since 1988! This means lower bond repayments and of course and increase in affordability. We would however like to caution over-zealous property shoppers not to purchase for the maximum amount as the interest rate will shift in the future. It is inevitable. Remember that a home loan is a form of credit and should be used responsibly. Please consult with your banker or financial planner for professional and accurate advice regarding your personal financial situation.

There are also a number of other reasons as to why this is an opportune time to purchase property. We have recently recovered from a recession. Property prices are still low and the market is dominated by those looking to purchase property. Whilst good property deals still abound, this will not be the case forever. Property prices are set to increase within the next 12 – 18 months and the good property deals available today will be difficult if not impossible to source in the future. Property remains the ultimate investment vehicle and offer returns which beat the share market almost every other legitimate financial offering. Examples of this can be seen in high value areas like Sunninghill, Paulshof and other suburbs of Sandton. I remember selling two bedroom apartment units in these areas during 2004. The prices for such units averaged between R 300 000 and R 400 000. Today, it is virtually impossible to purchase one of these units for under R 750 000 – R 850 000. I challenge anyone to demonstrate a higher return on their capital on such a short space of time.

Investing in property is very lucrative, but requires a knowledgeable buyer or the assistance of a property professional to make intelligent property purchases. It is very important to purchase a property in a good area and at a market related price, ensuring that the property is in a good state of repair. If you would like professional advice in finding a property which is a sound investment, we would be glad to assist you. Chilli Property specializes in residential sales in the areas of Sandton, Midrand, Fourways and Randburg. Call us any time for a no obligation chat. We look forward to hearing from you!