It’s a buyers’ market | Home Loan Advice

You’re in the market for a new home. And according to property experts everywhere, you’re in luck. Indeed, talk to any agent anywhere in SA and you’ll be told – with absolute justification – that this is a classic buyer’s market. In other words, now is a really good time to buy a home and/or invest in property.

The reasons are simple:

The market is somewhat depressed, sales are slow (especially in the upper price range) and genuine sellers are keen to dispose of their properties and move on. Which means that buyers now have serious bargaining power.

The average first-time buyer’s purchase price has seen consistent growth over the past six months, due mostly to sustained lower interest rates combined with the ongoing easing in lending conditions. Rising housing costs and increased municipal and utilities tariffs, along with the changing economic and racial demographics among home buyers, are now influencing demand at the lower to middle end of the housing market.

The banks coming back to the party

A significant factor in the present market is the fact that South Africa’s banks are playing a little less hardball over financing home loans. There was consistent improvement in banks’ lending criteria in 2012, which has obviously had a positive impact on the effective approval rate. The reduction in interest rates of 650 basis points since 2008 has improved affordability and markedly reduced the cost of servicing a bond. These record low interest rates, coupled with subdued property price increases, a more relaxed attitude by the banks and lower deposit requirements will continue to prove beneficial to potential homeowners.

Is this really a good time to invest in property?

This might be a case of stating the obvious, but property should be an investment that will continue to grow in value in the years to come. Potential homebuyers and/or investors in South Africa should always research an area thoroughly and consider the following when purchasing property:

• Always look at the surrounding areas – what sort of infrastructure exists and what is the crime rate in the area?
• Make sure you’re going to be comfortable with the daily commute to work and the distance and time you will spend on the road each day.
• Try to purchase property that is relatively close to good schools. This advice applies even if you don’t have school-age children. When it is time to sell, strong school districts are often a top priority for home buyers, thus helping to boost property values.
• Always be on the lookout for facilities that can create unwanted noise or disturbances in the area – pubs, nightclubs, restaurants, service stations, shopping malls and so on.
• Potential buyers should start their property search online as property websites list properties for sale throughout SA. The big win here is the convenience of the entire operation – prices, areas, details of the dwelling and photographs all help guide you in your ultimate choice.
• An experienced and reputable estate agent has access to invaluable market information long before the public: he or she will know a great deal about homes that are new on the market and comparable prices. Working with a good agent will make the search process much easier.

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

At Mortgage Plus Bond Originators we will apply on your behalf and negotiate the best home loan options between all the major financial institutions and we guarantee you the best home loan interest rates throughout South Africa. In addition to these home loan benefits, we will also negotiate discounts on your bond registration costs. So let us secure you the best home loan deal out there!

Mortgage Plus are what South Africans call Bond Originators or mortgage brokers. Before there were any bond originators like Mortgage Plus cc, you had to go through the process of applying for Home Loans or Mortgages with every single bank individually. You had to go to their office during regular hours. This took extra days and hours of trying to shop for a home loans with interest rates you could live with.

When you hire a bond originator like Mortgage Plus, things work very differently. We will often come to your home, even after normal business hours and take you through the home loan application process and give you the property buyer the best possible home loan advice. This means that you don’t have to spend hours going through the same Home Loan Application process over and over again. “One application for all the banks throughout South Africa”

Mortgage Plus Bond Originators have signed contracts with all of the bigger banks on South Africa as well as many of the smaller independent banks. The thing that is good about this is that when you get the okay from multiple banks, you can choose which one you want because by being able to compare rates and terms you can pick the one that offers you the very best terms.

Mortgage Plus bond originators do all of the negotiating with all of the lenders in order to get you the best home loan deal possible. When all is said and done, the originators can usually get between a 0.5% and 1.0% lower than the current bond prime rate of 9% .

Estimates say that the bond origination industry will save their clients around 5% per year in rate concessions. The Banks In South Africa all know that they have to be very competitive in the home loan market. Mortgage Plus Originators won’t reveal what has been negotiated but will give each of the Banks one final time to bear the best home loan interest rates and terms for the consumer.

It is also a good thing that regardless of all the red tape the National Credit Act causes, Mortgage Plus Bond Originators still manage to take your home loan application through the process of getting approved in just about half  the time it would normally take you if you were approaching the lender or bank directly.

So you not only save on interest rates and get better mortgage terms, but you also save time and we all need to save as much time as we can.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za