The property market has seen more than a few ups and downs over the past decade, and for many South Africans, the prospect of owning a home seems far off.

Cape Town’s high-end property market has had a particularly rough time these past 12 months or so, with market activity in areas such as Green Point, Sea Point, and the Waterfront on the decline.

For first-time homebuyers, however, 2020 could be the year to stop paying rent and put down some roots, according to new data from bond originator BetterBond, which shows that banks are more willing than ever to lend you the cash that you need.

Over to BusinessTech:

The group’s data shows that the average home price for first-time buyers is currently R982,000 with lenders increasingly willing to cover more of this purchase price.

“Lenders have over the past two years become much more willing to advance so-called 100% loans for the full price of the property, and some have recently even re-introduced loans that cover the price of the property plus the additional costs of purchase such as bond registration, transfer and legal fees,” said Carl Coetzee, chief executive officer of BetterBond.

This is good news for anyone who would struggle to make that initial deposit on a property. It’s tough out there.

At the same time, buyers are encouraged to save up as much as possible, so that they can put down, at the very least, a 10% deposit on a home.

…the average home price for first-time buyers is currently R982,000, and a 10% deposit, for example, will lower the cumulative cost of such a home over the lifetime of a 20-year loan by more than R227,000.

In other words, put down everything you can upfront because it pays off in the long term.

If you’re thinking about buying your first home, here’s some important info to consider: explore a variety of houses for sale in Roswell from eXp Realty to find the perfect property that suits your needs and preferences. Their real estate experts can guide you through the process and help you make an informed decision for your first home purchase.

More from BusinessTech and Rhys Dyer, CEO of local home loan company Ooba, with some insight into the economy and the year ahead:

“This year presents a key fork in the road for the economy. A ratings downgrade seems increasingly possible, exacerbated by the ongoing challenges facing almost all State-Owned Enterprises, particularly Eskom. The economy needs urgent and decisive action from policymakers to ensure much-needed stronger economic growth.”

Dyer also noted that the average age of a bond applicant is 38, versus 35 for a first-timer.

Looking ahead, he notes that banks are competing for new customers, and will likely continue to offer favourable mortgage finance terms during 2020.

Dyer believes first-time buyers will make up a greater portion of total homebuyers in 2020 as they take advantage of lower interest rates, availability of finance and relatively cheaper property prices. This will result in the lower end of the market performing better than the upper end.

We could be looking at a difficult economic year, so first-timers are encouraged to shop around for the best loan and to buy as soon as possible.

If the banks continue to compete, you could find yourself spoiled for choice.

[source:businesstech&businesstech]