Property News Trending

In a recent Pharma Dynamics survey, conducted among more than 3,000 South Africans nationally between the ages of 15-50, over 62% said they live in constant fear of missing out (FOMO). Symptoms include jaw clenching (41%), the inability to put one’s cellphone down (30%), excessive SMSing (24%), compulsive sweating (18%) and even Tweeting when on the toilet (11%). Whether it’s the fear of spiders, crime, heights or being turned down for a home loan, fear can paralyse. In the South African real-estate sector it paralyses buyers and prevents an Offer to Purchase from being signed. The perception of an unstable economy may make the fear of losing one’s employment justified.

Fortunately, for first-time buyers the fear of being able to maintain bond repayments is partly allayed by risk-sensitive lenders whose responsibility it is to ensure that the loan is not only legislatively compliant with the National Credit Act (NCA) and Consumer Protection Act (CPA) but also will not, at some point in the future, constitute ‘toxic debt’.

Overcoming the paralysis – the fear factor – can be financially rewarding, as was evident from the television series of the same name. Recent research by Knowledge Factory indicates that purchasing your primary residence now, in a down market, can be rewarding in the long term. Current rental yields are not particularly encouraging for buy-to-let investors. However – for fear of missing out – many continue to expand their portfolios by picking up bargains from distressed sellers.

With Mangaung looming, politicians are keen to create patriotic optimism with promises of job creation, additional gap-housing programs and a stable economy. However single-digit nominal house price growth, low interest rates and sufficient stock in popular areas is not enough to kick-start cheerfulness in the real-estate economy. Healing requires time and the fragility still evident in both the micro and macro sectors must worm its way through the current cycles.

Nevertheless thousands of property professionals are utilising the information supplied by reliable property data portals to navigate sellers to a market-related price. Educated buyers – for fear of missing out – are leveraging banks’ higher risk appetite and grabbing never-to-be-repeated offers from property developers. Developers have sweetened housing deals with promises to pay the home insurance for a year or bond repayments for 3 months.

Real-estate agents – for fear of missing out – are making sure that each mandate is showcased on SA’s premier property websites so that prospective buyers and tenants can see what is on offer.

The Reserve Bank (SARB) took even experienced economists by surprise with its rate cut last week sighting a generalised slowdown in the global economy amid the continuing risks posed by the Eurozone and declining commodity prices. Until recently restraint has been the global watchword, although some emerging markets notably Brazil, Israel and Czech Republic have lowered interest rates further. Our current interest rate of 8.5% is at historical lows – last seen in August 1972. The rate is now considerably lower than that suggested by the Taylor Rule.

There is good reason, therefore, for property owners with mortgage bonds to benefit from the rate cut and clean up their balance sheet while low rates persist. History shows that, under the right conditions, private-sector deleveraging leads to renewed economic growth and then later on down the line, public-sector debt reduction. GDP growth in South Africa is expected to rise to 3.6% in 2013, subject to global recovery taking place and (hopefully) an orderly resolution of the Eurozone clutter. With those prospects in sight and a climbing growth curve, no one will have to miss out.

Dieter Deppisch

Property Sector Analyst

Knowledge Factory 

Leave a Reply

The 3 Worst Reasons To Buy A Home
Avoid These Most Common Pitfalls When Buying Or Selling Property
Be Careful Of Sophisticated Property Scammers When Buying Property
4 Basic Scenarios That Bring On Buyer’s Remorse
Avoid These Debt Hazards To Keep Your Home
SA Property Market Remains Safe Haven Asset For Investors
What To Do (And NOT To Do) When Looking To Sell Your Home
How Do Your Pets Affect The Selling Of Your Property?
4 Important Questions To Answer Whether You’re Ready To Buy A Home
4 Minimum Insurance Considerations For Body Corporate
6 Quick Tips When Buying A Home In An Estate
How To Sell Luxury Real Estate
How Hiving Living Emerges As New Housing Trend
City Or Suburbs: Where Should You Buy A Home In South Africa?
Property Practitioners Bill – Why Should The Consumer Give A Hoot?
The 3 Worst Reasons To Buy A Home
Avoid These Most Common Pitfalls When Buying Or Selling Property
4 Home Buying Obstacles To Overcome
Be Careful Of Sophisticated Property Scammers When Buying Property
4 Basic Scenarios That Bring On Buyer’s Remorse
Applying For A Home Loan? Key Is A Good Credit Report
4 Important Questions To Answer Whether You’re Ready To Buy A Home
6 Quick Tips When Buying A Home In An Estate
City Or Suburbs: Where Should You Buy A Home In South Africa?
Property Practitioners Bill – Why Should The Consumer Give A Hoot?
4 Top Reasons To Buy a Home In The Summer
When Is The Right Time To Buy Property?
Make an Informed Decision When Buying a Fixer-Upper
10 Common Mistakes First-Time Home Buyers Make
8 Greatest Concerns Keeping Property Investors Awake
What To Do (And NOT To Do) When Looking To Sell Your Home
How Do Your Pets Affect The Selling Of Your Property?
How To Sell Luxury Real Estate
Property Practitioners Bill – Why Should The Consumer Give A Hoot?
Why A Good Sale Actually Starts With A Good Sale Agreement
What Are The Tax Implications Of Selling Your Primary Residence?
5 Unexpected Expenses When Selling Your Home
How To Get Ready To Sell Your Home In Spring
All That Twitters Is Not Sold
5 Expensive Mistakes Made By Home Sellers When Selling A Home
Does An Open Mandate Delay a Home Sale?
8 Tips On Selling an Empty House
Neglecting Home Maintenance Will Damage Sale Price
The Do’s And Dont’s of Selling Your Home
4 Clear Signs It’s Time To Sell Your Home
4 Minimum Insurance Considerations For Body Corporate
Looking For A Rental Property? Make Sure You Are Rental Ready!
Know The Lowdown On Letting Out Your Property
How Much Should You Spend On Rent A Month?
#SmartHomes: The No.1 Tenant Amenity Today Is Wi-Fi
Demand For Rental Properties Rising Due To Low Confidence Levels
What About Pet Ownership In Sectional Title Schemes?
Why Creditworthiness Is Just As Important For Tenants
Factors To Consider When Letting Out Property
New Landlords Need Experienced Agents
The Perils of Rising Consumer Debt For Landlords
First-Time Tenant? What You Need To Know
Average residential rental values on the increase
Is It Possible To Terminate A Lease Agreement Without Recourse?
New Generation Digs Now On The Rise
3 Helpful Tips For a Stress-Free Moving Day
Divorcing And Need To Sell? 3 Possible Options
5 Mistakes To Avoid When Relocating
7 Tips For Packing And Moving Quickly
Moving? Things To Think About!
Maximising Small Spaces
7 Tips To Help Your Children To Adapt To The Move
What To Do With Your Home When You Have To Relocate
Moving With Pets Can Be Tricky
Estate Agent Moving Tips
Telltale Signs You Need A New Home
Seven Signs You Need A New Nest
Über Wealthy On The Increase And On The Move
Applying For A Home Loan? Key Is A Good Credit Report
SA Property Market Remains Safe Haven Asset For Investors
What Are The Tax Implications Of Selling Your Primary Residence?
5 Unexpected Expenses When Selling Your Home
8 Greatest Concerns Keeping Property Investors Awake
Running Behind On Your Home Loan Repayments? Here’s What To Do!
5 Financial Tips To Stay Afloat As a First-Time Homeowner
First-Time Home Buyer? How To Avoid Tax And Get Up To 44% More Space
Repo Rate Cut: Encouraging News For Home Buyers
Is Investing In Property During The Recession Still A Good Idea?
4 Hot Tips For Investing In Student Accommodation
Make Your Bond Work For You
Energy-Saving Tips For Your Home This Winter
Costs To Consider When Investing In Property
Smaller Properties Yield Great Investments
5 Reasons You Should Work With a Real Estate Agent
Is Hosting Your Property On Airbnb Legal?
How To Protect Your Commercial Property Investment
Commercial property still important asset class for private buyers
Know The Risks Before Building Airbnb Castles In The Sky
Green Buildings Catching On In South Africa
Digital Disruption And The South African Commercial Real Estate Market
Can You Run A Business From A Sectional Title Home?
What’s Driving Change In The Commercial Property Sector?
5 Ways Commercial Property Space Planning Can Save You Money
Investing In Commercial Property an Attractive Option
3 Obvious Signs That It’s Time For Office Relocation
3 Things You Need To Know Before Buying Vacant Land
Price Correction In Commercial Property Market
South Africa: Evolution of Industrial Properties