- Despite the succession of interest rate hikes, interest rates remain relatively low.
- We’re still in a buyer’s market because the increasing availability of properties keeps house prices down.
- Loadshedding means more people are looking for energy-efficient homes with renewable power sources.
Two years ago all the talk was about COVID and lockdowns, but people are finally moving on. Now it’s other factors that need to be taken into when investing in property.
Three key factors are:
- Interest rate hikes.
The property market in 2023: Soldiering on
Contrary to expectations, the property market remains a solid investment despite all these factors.
- Property prices are growing at a lower rate than inflation.
- Interest rates remain relatively low despite the succession of hikes (below the average of 13%-15.5%). Furthermore, experts believe that interest rate hikes may soon be coming to an end.
- Loadshedding has increased the demand for energy-efficient homes equipped with alternative energy sources such as solar panels.
We’re still in a buyer’s market
Lightstone, a provider of data analytics on the property market, forecasts a buyer’s market for 2023.
This is because the number of properties available is steadily increasing as developers cater to increased demand. This keeps prices down.
This remains a factor, as more South Africans adapt to the work-from-home lifestyle by migrating to more remote, scenic locations.
On the other hand, a lot of people are also returning to the workplace, moving to central areas in order to be close to business hubs.
This ensures that buy-to-let remains a profitable investment. Investors would be wise to invest in some of the new developments that have emerged in response to COVID. These developments are equipped with state-of-the-art facilities on-site and are especially appealing to young professionals.
Investment tips for 2023
To sum it up, investors will benefit by setting their sights on the following types of properties:
- Properties located in remote areas, especially coastal areas.
- Properties located in blocks that offer facilities such as a gym and workspace, as younger homeowners seek a balance between being in a city hub and also having a space that can combine the residential with commercial and recreational.
- Properties located on estates, as sectional title properties offer a sense of community, and safe outdoor areas that make the stay-at-home lifestyle more attractive.
If you’re interested in investing in property, or are looking to upgrade to a bigger home, ooba Home Loans can assist by submitting your home loan application to multiple banks, allowing you to compare deals offered by the banks, and choose the one best suited to you.
We also offer a range of tools that can make the homebuying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.
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