The time to buy investment properties is now
Although we live by the philosophy that any time is a good time to buy a good investment property, the recent home loan growth means there is a great opportunity for you to grow your investment property portfolio.
South African banks continue to show confidence in our property market and are currently approving home loans at a rate we haven’t seen in years! In the opinion of FNB property economist, Siphamandla Mkhwanazi, if this growth continues, the residential property will receive a nice boost.
Mkhwanazi says, “The progressively faster pace of growth in mortgage advances this year could be a positive outlier for future growth. While the property market has underperformed in recent years, the growth in mortgage advances this year has provided some support, injecting much-needed liquidity into the market.”
Mortgage advances have outpaced average house price growth in South Africa since June 2011. But what does this mean for you and your investment property portfolio? Well, for one thing, it means you should throw the door wide open to the opportunity that is knocking.
Let’s consider the good news for property investors with this home loan approval growth.
• More home loans available to buy investment properties
• Economic growth (good for us all)
• Increased employment levels
• Lower interest rates
• Constructive lending
• An increase in residential property transaction volumes
• Banks are willing to finance bigger proportions of the purchase price
• Smaller deposits required from banks
Timing is everything, and when the iron is hot, you better strike. So, our only advice to you is to take advantage of the increased home loan advances and buy!