Nadia Marais, Owner Namar Properties
Is now a good time to buy a property in Port Elizabeth and the Surrounding Area?
Here at Namar Properties, we are used to our clients seeking our advice on all things property in Port Elizabeth. However, there are two questions that we are being asked more now than ever before:
- Can I buy property at the moment?
- Is now a good time to invest in PE property?
The answer to both questions is a resounding yes!
Can I buy property at the moment?
Most importantly banks are operating in lockdown so arranging finance to purchase your new property is still readily available. And searching online from the comfort of your home for Port Elizabeth property is super easy using our website search function and viewings at properties you are interested in can be arranged by our team, ensuring the correct safety procedures are in place.
Is now a good time to invest in PE property?
According to Namar Properties owner Nadia Marais “If you can, now is an excellent time to get into the property market and take advantage of declining property prices in certain segments of the market, attractive interest rates and an expected surge in rental demand”.
“If you can, now is an excellent time to get into the property market and take advantage of declining property prices in certain segments of the market, attractive interest rates and an expected surge in rental demand“
Here are our 3 main reasons we believe that now is a good time to invest in property.
1. Potential for a significant return on investment
“If we take lessons from the past such as the Global Financial Crisis in 2008, property investors that didn’t hesitate in taking advantage of the then fall in house prices have been rewarded with some of the best gains in property value we have ever seen” said Nadia.
Our view is that this will repeat itself with the possibility of an even quicker return with the expected U shaped economic recovery.
2. The lowest interest rates in almost 50 years
In a positive response to the expected damage the COVID 19 pandemic will have to the economy the South African Reserve Bank (SARB) has made three separate interest rate cuts in the first half of 2020. March 1%, April 1% and another 0.5% in May. This takes the prime rate to 7.25% – the lowest it has been since 1973.
This is great news for property owners and investors, making their monthly repayments much less than before the crisis. The other factor to take into account in financial planning is that oil prices are expected to stay low for the near future, this will help keep inflation in check which may allow the SARB to make further interest rate cuts if needed.
It has been identified that property investment will play a key role in helping the nation on its road to economic recovery so we expect that interest rates will remain favourable for property investors.
3. Rising demand in rentals is helping a resurgent buy-to-let market
There are more Millennials entering the property market than ever before and, according to recent research from financial services provider Momentum, only 40% of Millenials are interested in purchasing property leading them to be dubbed “Generation Rent”.
This, combined with that fact that due to the economic downturn some people will need to put on hold their plans to buy property will see a sharp increase in the demand for rentals
So, in summary, a short term decline in property prices, lowest interest rates in almost 50 years combined with an expected increase in the demand for rental property makes us confident that now is one of the best times to invest in a property in Port Elizabeth or the surrounding area.
Get in contact with a friendly team for expert advice and to arrange safe viewings of our listed properties.
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