2021 was a very good year for the property industry, we over-recovered after lock-down. It was not a good year for the global economy though. Many homeowners reassessed their requirements as the pandemic brought the global economy to a halt on a previously unseen scale. However, that may be good news for people who are interested in buying a new home.
First-Time Buyers: Now Is the Time to Buy
Why is it such a good time for first-time buyers to investigate the possibility of getting their dream home? Home loan application statistics show that even Millennials and younger individuals are buying property.
There are several excellent reasons why many people are becoming first-time homebuyers:
The interest rate on home loans is at a historical low. It's creating an opportunity for many South Africans to enter the property market for the first time. In fact, the rates are lower than it’s been in nearly 50 years, and while it may not last indefinitely, experts predict that 2021 will remain one of the most affordable years for first-time buyers.
With the option of buying a home being cheaper than renting a home, it’s no surprise that those same experts believe that first-time buyers will continue to drive the property market through 2021.
Should You Buy or Rent?
It’s a tricky question to answer, and it depends on your needs as a prospective homeowner. If you’ve already decided that you want more space or a family-friendly home, now is the best time to take advantage of low interest rates and a flooded residential market. However, as tempting it may be to buy your perfect home in 2021, it’s just as important to consider the future financial impact of such a decision.
Even though the market favours buyers, it doesn’t mean that you must take out a loan to buy a new home. Eventually, the market will recover, and that may have an unforeseen financial impact. It’s also essential to consider utility, mortgage, and tax costs.
Another factor to consider is erratic service delivery and sustainability. It’s a lot easier and more affordable to take a smaller house off-grid than it would be to do the same for a large suburban home. However, it’s not impossible.
Yes, it’s an excellent time to buy your perfect home. That said, take the time to consider if renting might suit you better. A significant investment, such as purchasing a property, shouldn’t be a snap decision.
Things to Consider When Buying a Home
If you’re preparing to buy your perfect home this year, there are a few things you might want to consider. It may seem as simple as choosing one that looks right, but it’s essential to think about your current and future requirements before making a final decision.
Here are a few things you should look at when you’re searching for your dream house:
Environment and Amenities
As a buyer, you should consider both in-house amenities and those in the surrounding area. For example, furnished homes with fibre and solar capabilities are becoming a lot more popular. Why? Because you won’t have to worry about service interruptions or high furnishing expenses.
Similarly, the amenities available in the surrounding area is also something to consider. Urban regions used to be popular due to the availability of shops, schools, and entertainment. It also cut down on long commutes. However, large cities are losing their appeal, both as a living and a working environment.
New trends see buyers looking properties around coastlines and in areas that have a rich natural environment. Homes in eco-estates and secure housing communities are finally becoming more affordable, and the attractive prices make them even more appealing to prospective homeowners.
Living Space
If there’s one thing we learned during 2020, it’s that we either need space or we need access to areas outside of our homes. Long periods of lockdown have made most people painfully aware of how cramped our lifestyles have become. Now, it’s fast becoming one of the essential criteria that prospective buyers consider.
With the market favouring buyers, it’s a good time to look for larger homes with more living space and affordable price tags.
Urban, Suburban, and Working from Home
The need to be close to urban areas and offices are diminishing as more businesses realise how much they can save by permanently employing staff in work-from-home positions. Consequently, many urban metros are experiencing a max exodus. Now, prospective owners look for suburban and coastal properties that offer more space at a lower cost.
Experts believe that, as relief measure wind down, more sellers will enter the market looking for urgent sales. Larger suburban properties are more affordable than they’ve been in many years. As a result, young couples and families are considering purchasing a home where it may not have been possible before.
The change in the working environment has led to people appreciating the need for increased living space, home offices, outdoor and entertainment areas, and in-house features and amenities. Homes with plenty of private space and large communal areas are fast rising in popularity, as are those with big and private gardens.
Historically, these types of properties aren’t the most affordable – which is why many first-time buyers are taking advantage of the opportunity while prices and interest rates are low.
Should You Buy Your Perfect Home in 2021?
Although it’s a buyer’s market, it doesn’t mean you must buy a new home. With low interest rates, a flooded market, and a wide selection of properties, it’s a good time for first-timers to take advantage of the situation. However, it’s a significant decision that’ll have a lasting impact, so consider it carefully.