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Six reasons to invest in residential property in 2020

Category Buyer Advice

There are more reasons than ever to invest in residential property in 2020. But many potential homeowners might be missing out on this once-in-a-decade opportunity because of their fears and uncertainty about the future of the economy, and the property market in specific.
The cost of home loans are the lowest and most affordable they have been in 20 years, but some investors are not yet considering property as the best way to invest their money right now.
If you are looking for a wise investment, but you're scared to spend on property, you need to keep these great reasons in mind for doing so today:

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.

You'll have your pick of more properties than ever to suit your taste and needs, from compact lock-up-and-go homes to luxurious houses for large families.


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.

The actual value of the property also increases yearly and at a higher rate than inflation, meaning your investment continues to grow.


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

You might be worried that South Africa's current rollercoaster economic situation will negatively affect any investments you make now, including investments in property.
But when it comes to residential property, there's something that will never change: no matter what happens to the economy, the value of your home will always grow faster than inflation.
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.


Don't snooze and lose

Still wondering whether property is the best way to invest your money in 2020? Consider this simple fact: if you are in a position to invest and you're certain of a stable income, then this year is a better time than ever before in your life to put your money into property - whether you'll be living in your house or renting it out for additional income.
Take a look at the great investment opportunities NS Property Solutions offers here. You can also find out how we can help you get more bang for your buck here.
Ready to start your property investment journey? Contact us today.

Author: NS Property Solutions

Submitted 30 Jun 20 / Views 2555