Goooooooooooooooooooood Morning South Africa......
For those of you visitors who aren't native to South Africa, we used to have a TV show in the mornings (the apartheid days) where we all used to sit around the television and wait for the first morning show to start at 6:00 am (i think) called "Good morning South Africa", just thought I'd add my little "Gooooooooood morning Vietnam" twist to it...!
Before I carry on with my "5 safest buys in a economy that's taking a beating" post, I just wanted to say that I'm tired of people feeling sorry for themselves. I'm tired of people being unhappy in these gloomy times and I think it's time that people realised that even if it's a GLOBAL meltdown of world economies that we might be experiencing, there's always light at the end of the tunnel, and I think it's times like these that we all need to stick to friends and families and see the positive side to life! MONEY is not EVERYTHING!
So, smile, be merry & we're going to try and help you do that by giving you 5 tips for buying properties in a tough economy. Remember, when economies are down, people need money, this means bargaining skills and patience are the keys to scoring that ultimate real estate investment.
We have one advantage to our interest rates being so high. Those people that bought houses that they couldn't actually afford, are the people that are going to have to downscale (no offense to anyone but it's the truth). It means they're going to have to sell, or their properties are going to be repossessed. However, with times like these the banks aren't granting home loans. This is resulting in a massive influx of houses going on auction.
TIP 1: Keep your eye our for auctions, BIG BIG BARGAINS.
Think about your property before you buy it, think about the location. Everyone needs schooling. So why not buy around close to a school or educational facility like a varsity or college? It means you can save money by allowing your kid to walk to school. It's also a very safe buy because generally, prices of house around schools don't decline. I bet a piece of real estate next to Harvard or Cambridge is worth a fortune :)
TIP 2: Buy close to a school or educational facility.
Deposit, Deposit, Deposit... Make sure, that you have enough money to pay a 10% deposit PLUS cover the registration and transfer costs on a property. With banks being as tight as a ducks backside at the moment, it's imperative that you put down a 10% deposit. In fact, most banks are probably going to end up offering 90% loans by the end of the year.
TIP 3: Put down 10% deposit and cover bond + registration costs
World Cup 2010, tourism boom!!! Where are the stadiums? Where are the tourist hangouts and places to be for travel industries throughout South Africa. Do I need to say more on this topic? Let me give you a hint, Cape Town - Seapoint & Greenpoint seaside apartments. You will not get a better return on rental investments anywhere in the world. Greenpoint stadium is right up the road, Waterfront is right down the road, and it's central and on the seafront. I'm buying!!!
TIP 4: World Cup 2010 rental market
Use a bond originator to get your home loan. The silliest and most simple mistake you can make when applying for a home loan is to not use a bond originator. The service is free, the admin is ZERO and they'll apply to all the banks on your behalf at NO COST. It's really a no brainer. They know the tricks of the trade and WILL fight for your loan as it's their living!
TIP 5: Use a bond originator when buying property
Hope this helps.