Navigating the property market during lockdown
Category Market Advice
COVID-19 hasn't just impacted your lifestyle. With the lockdown, your property goals may also be affected. If you're buying or selling, what do you do now? It's a tough time but there are opportunities if you're smart. By understanding the current property market and working on a strategy, you can get through it successfully.
It's a buyer's market
Thanks to property trends and developments, it's a favourable time if you're looking to invest in the local real estate market.
Property stock levels are higher than they've been in a while. According to the latest FNB Property Barometer report, the higher-end market, in particular, remains in excess supply. This is great if you're searching online for new properties and want to pick up a deal from an eager seller.
As a buyer, you can enjoy the lowest repo rate South Africa's had in the last 47 years. The South African Reserve Bank made a surprise cut last month taking the repo rate down to a record low of 4.25%. This makes it easier for you to qualify for a home loan and monthly home loan repayments more affordable.
If it's your first step onto the property ladder, you'll be happy to know the zero-transfer fees threshold has been increased. You'll be exempt from paying transfer duty fees if your property is R1 million and below. If you're set on a property valued between R1 000 001 and R1 375 000, you'll only have to fork out transfer duty costs of 3% of the property value.
Foreign investors can also put their best foot forward. As the rand weakens against the dollar, those overseas can get more bang for their buck. An investment in the local property market is now more attractive.
As part of the lockdown, the Deeds Office was closed in April. This put thousands of transactions on hold. Lockdown Level 4 has allowed this office to reopen. Conveyancing firms have also returned to work. This is a welcome relief for buyers wishing to put in an offer on a property and those who are in the process of property acquisition.
Tips for buyers
Yes, this period works to your advantage. It's still important to make a move on your property goals. Real estate agents and homeowners are still selling during the lockdown and locking down sales.
Many properties will be discounted so you'll need to do your research. Look at the selling points of each property on your list and check out what their neighbourhoods offer.
While you can't visit a property in person, do check if the homeowner can give you a virtual tour. This will help you evaluate if the property meets your expectations.
An experienced real estate agent can make all of this much simpler. They can find homes that match your needs and budget and help you negotiate. Savvy agents can tell how motivated a seller is, ensuring the negotiation works in your favour.
Sellers, don't despair
You can still come out smiling during this period. As many buyers may choose to search after the lockdown, you can even capitalise on the pent-up demand.
As it's a buyer's market, you are competing with other properties for sale. It's important to make sure your house is priced correctly so you don't deter potential buyers. An experienced agent can assist by evaluating similar properties for sale in your area and ensure you sell at a competitive price. They'll also get your house on property portals and social media so you can maximise the offers you get.
If you're homebound with free time, there's no excuse not to get your home in order. Sprucing up your garden, decluttering, and adding a dash of paint can enhance your property's appeal.
Finally, avoid feelings of frustration. The market may not be on your side so don't agonise if your home isn't selling as fast as you'd like. Be open to negotiations and exercise patience.
As a leading real estate company, De Lucia Group can help you through this period. We have years of buying and selling experience. Speak to De Lucia Group today or call Michael De Lucia directly on 082 493 1089.
Author: De Lucia Group
