If you’ve set your sights on buying the house of your dreams in 2019, you’ll be pleased to hear that current buyers’ market conditions look set to continue for at least another 6 months. That doesn’t mean you should just sit back and wait for the perfect opportunity to come to you, though! Tony Clarke, MD of the Rawson Property Group, says proactive purchasers are far more likely to make successful property investments. Here are his tips on putting your best foot forward!
Plan for a deposit, even if you don’t have to
According to Rawson Finance, lenders are granting 100% loans in certain circumstance, but Clarke says smart buyers are putting down deposits this year, anyway.
“Putting down a deposit – traditionally around 10% of the purchase price – helps to minimise the risk your bank is taking by granting you a loan,” he explains. “This can have a significant effect not only on their likelihood of granting you finance, but also on the interest rate they’re willing to offer you.”
Rawson Finance National Admin Hub Manager, Leonard Kondowe, confirms that buyers with deposits have been known to qualify for interest rates as much as 2.5% lower than those asking for 100% bonds. That can literally save you hundreds of thousands of rand over the course of a 20-year loan, and turn a middling investment into a real winner.
Don’t forgo prequalification
Don’t be fooled into thinking that getting prequalified is only essential when it’s a sellers’ market. Competition for specific properties can be fierce