Prospects for property buyers in 2021
As the year moves on and people are starting to review the start of their year and the choices that they have made up to this point, the property market may become a more lucrative option to consider investing in or making changes in. So, what prospects are there for first-time buyers?
House prices are bound to increase, but by how much?
A slow overall recovery of the housing market is expected in the year to come. This will be largely down to the still-volatile economy that is regularly disrupting the plans of young families and first-time home buyers especially. So even as housing supply is starting to diminish because of the influx of buyers, and the demand from first-time homebuyers stays constant, house price growth isn't expected to make drastic increases.
Last boarding call for first-time buyers
Interest rates will start to rise slowly but surely over 2021 and beyond. When the pandemic struck at the start of 2020, it changed the housing market completely and the repo rate was dropped to stimulate market activity. The repo rate still stands at its lowest point in decades, but that is bound to change as the months go by.
This means that this is the last boarding call for first-time buyers looking to make the most of the current interest rates available on the bonds being offered to them by the banks. Soon, it will not only be interest rates that are expected to increase, but house prices too. As the economy rebounds, houses will start to fetch higher prices, which means that new home buyers will need to take out larger bonds at a greater interest rate if they don't take the opportunity presented to them now.
What will buyers look for?
There seems to have been a turn in expectations from buyers over the past few months - especially as working from home has become a viable option for many. Many people have started to review the requirements they have of a home. These changes in living philosophies will probably make for a fairly active property market as people move to places that are more convenient and less-centrally located in relation to the major cities.
Some people may consider upgrading or downgrading their home environment, depending on the impact of the economy over the period of the pandemic, and also based on the changes in expectations and requirements as highlighted above. The coming years could see a revolutionary change in the way that new buyers choose homes - no longer basing their decisions on the size of the kitchen, or shape of the living room, but focussing rather on sustainable living, nearby amenities, and reliable infrastructure (especially with regard to internet technologies).
Renters turning into buyers
Because of various factors in the housing market, not least the affordability of homes under current conditions, renters are turning up in droves to become homeowners instead as the difference in price of renting and bond repayments has narrowed in the last year. Because of the economic downturn that has come from the pandemic, vacancies also abound, meaning that the renting market has taken a knock and investors may turn to selling properties that they are struggling to find occupants for.
At 3%.Com Properties we take you through the process and give you the best advice and accurate information as you require it. We hope to help you find your perfect home and take pride in becoming a homeowner. Lawyers selling property, it makes sense.®
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
House prices are bound to increase, but by how much?
A slow overall recovery of the housing market is expected in the year to come. This will be largely down to the still-volatile economy that is regularly disrupting the plans of young families and first-time home buyers especially. So even as housing supply is starting to diminish because of the influx of buyers, and the demand from first-time homebuyers stays constant, house price growth isn't expected to make drastic increases.
Last boarding call for first-time buyers
Interest rates will start to rise slowly but surely over 2021 and beyond. When the pandemic struck at the start of 2020, it changed the housing market completely and the repo rate was dropped to stimulate market activity. The repo rate still stands at its lowest point in decades, but that is bound to change as the months go by.
This means that this is the last boarding call for first-time buyers looking to make the most of the current interest rates available on the bonds being offered to them by the banks. Soon, it will not only be interest rates that are expected to increase, but house prices too. As the economy rebounds, houses will start to fetch higher prices, which means that new home buyers will need to take out larger bonds at a greater interest rate if they don't take the opportunity presented to them now.
What will buyers look for?
There seems to have been a turn in expectations from buyers over the past few months - especially as working from home has become a viable option for many. Many people have started to review the requirements they have of a home. These changes in living philosophies will probably make for a fairly active property market as people move to places that are more convenient and less-centrally located in relation to the major cities.
Some people may consider upgrading or downgrading their home environment, depending on the impact of the economy over the period of the pandemic, and also based on the changes in expectations and requirements as highlighted above. The coming years could see a revolutionary change in the way that new buyers choose homes - no longer basing their decisions on the size of the kitchen, or shape of the living room, but focussing rather on sustainable living, nearby amenities, and reliable infrastructure (especially with regard to internet technologies).
Renters turning into buyers
Because of various factors in the housing market, not least the affordability of homes under current conditions, renters are turning up in droves to become homeowners instead as the difference in price of renting and bond repayments has narrowed in the last year. Because of the economic downturn that has come from the pandemic, vacancies also abound, meaning that the renting market has taken a knock and investors may turn to selling properties that they are struggling to find occupants for.
At 3%.Com Properties we take you through the process and give you the best advice and accurate information as you require it. We hope to help you find your perfect home and take pride in becoming a homeowner. Lawyers selling property, it makes sense.®
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
20 Apr 2021
Author 3%.Com Properties