The Home Buyer

by: Villa Jaiswar118
Total views: 9
Word Count: 515

The Property Price Boom
With the recent boom in house prices we experienced in South Africa over the last decade the private property owners, the estate agents and those lucky enough to get into the rush early, really made a killing in the property market. For many, the property boom came as a total surprise and now that it is over, or shall we say struggling to survive, some still wonder how it actually happened. As a matter of fact, the property price boom was the aftermath of historically low interest rates lasting over an extended period. Presently it is estimated that property in South Africa and for that matter, worldwide are highly overvalued.
Although it is not expected that property prices will decrease at the same rate as it has increased a few years ago, the markets are waiting with bathed breath to see what the outcome of this quite period we are presently experiencing is going to be. Many a property owner was caught unawares during the cooling off period and the big conglomerates as well as the single home owner are presently facing difficult times. After the cooling down of the over inflated prices of property that reached its peak in 1989, property prices over a wide spectrum are falling across South Africa and the world.
At present the Estate Agents start feeling the pinch as the demand for houses and other properties are at its lowest level. The recently announced rate hike and the soaring prices of other commodities of which fuel is the most important, does not bring any relieve to the falling property market. At the moment there is a very interesting situation unfolding in South Africa. The emerging middle-class are investing in property and riding on the back of these phenomena the market to a certain extent is surviving.
The continuant economic growth in South Africa can with safety be hailed the axes around which the property market survives. The majority of investors in the real estate market presently are the previously disadvantaged, now emerging as the new middleclass and taking full advantage of the situation. The rest of the property world is actually longingly looking back at a very fruitful decade of riches. Even the individual investors are struggling to survive and property owners who bought properties in the hay days of abundance are now looking for ways to survive. One of the largest buy-to-let companies in an overseas market has been placed under administration. Is this the beginning of the property market slowdown?
In South Africa there are still the issue of affordability, especially where the first time home owner are concerned. This is forcing many young couples to reorganize and instead of becoming first time home owners, they will rather go into the rental market. This not only affects the newlyweds, but has a huge impact on the elderly, who as a rule are dependent on a pension or the interests gained from their lifesavings. The continuous increase of daily commodity prices are a matter of great concern and still tougher times ahead can be expected.

About the Author

Villa Jaiswar is the Author of the Article South Africa Property for Sale. She is the CEO of PropertyHome Private Property in South Africa. Visit Property Home if you have Property for Sale in South Africa Real Estate Agents here.

Comments

Add Comment