Transfer duty exemption and competitive mortgage set to boost market sentiment
The recent hike in the transfer duty threshold to R1.1 million has brought a smile to homebuyers' faces, particularly first-time buyers who are keen to enter the market.
The positive buying sentiment is further boosted by the competitive offerings from mortgage lenders, with high approval rates and low deposit requirements, making it easier for buyers to secure favourable terms.
Despite the rise in interest rates denting affordability, the market's weak price growth over the past two years (including the COVID-19 era) ensures that first-time buyers can still strike good deals and find fantastic value for money.
Does the Transfer Duty Exemption Make It a Good Time to Buy a House?
Seeff Property Group reports that the market is still somewhat well-balanced, with chances for both buyers and sellers. Sales for the year's first quarter are tracking nicely compared to the previous year, and the rental market is expanding as demand rises and landlords report positive rental growth for the first time in two years.
Recent property data indicates a slowing in price appreciation, with just about a 2% growth in 2022 and 4.2% in 2021, compared to 3.5% in 2022 and 4.2% in 2021. This means sellers may be more likely to compromise on their asking prices while the market is still active.
Despite recent interest rate increases, the South African property market is resilient and offers a solid investment opportunity if you’re keen to buy and rent for some passive income. First National Bank (FNB) reveals that numerous factors, such as lifestyle changes during the pandemic, semigration, and consumer preferences, keep the market active
Furthermore, the availability of financing, the competitive home lending market, and the transfer duty exemption make it the perfect moment to invest in real estate.
Whether you're seeking to buy or rent, take the opportunity provided by the transfer duty exemption to purchase prime real estate market; Seeff’s expert Property Practitioners are here to guide you. Get in touch with us to find and buy your dream home.
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