Now could be an ideal moment to invest in property, according to insights from Jooma Properties. While there's never a clear signal announcing the market's lowest point, current indicators suggest it’s a promising time to buy. The recent drop in inflation to 4.6%, the lowest since mid-2021, strengthens the case for potential rate cuts, fostering a positive outlook.
The broader economic landscape also looks promising. The Government of National Unity appears poised to implement changes that could stimulate growth, driven by a younger, reform-minded leadership. This renewed energy in government, combined with recent stability in the energy sector—evidenced by a reduction in loadshedding—suggests that economic recovery is on the horizon. A stable energy supply is crucial for boosting GDP growth, which can lead to more jobs, increased wealth, and higher demand for real estate.
At Jooma Properties, we’ve observed that the property market is heavily influenced by positive sentiment. People are more inclined to make long-term investments, like buying a home, when they feel confident about the future. For the first time in many years, there’s a growing sense of optimism about the country’s prospects.
The anticipation of falling interest rates adds another layer of confidence. Purchasing property when interest rates are expected to decline allows buyers to secure favorable terms, knowing that future costs may decrease. Currently, interest rates sit at 11.75%, and if they enter a downward trend, it’s an excellent time to buy.
Moreover, property prices in many areas have remained relatively stable over the past 5-7 years, even in higher-end markets. This means that purchasing now could allow buyers to acquire property at prices similar to those from years ago. As the market recovers, property values are likely to appreciate, offering potential gains in the future.
Jooma Properties believes that the current market conditions are particularly advantageous for buyers. Banks are still offering loans with relatively low deposit requirements, and qualifying buyers may benefit from interest rate concessions. Historically, those who purchase property just before a market upswing have seen significant returns on their investment. On the other hand, waiting until the market is on the rise could mean paying a premium.
How to Determine Your Budget: Tips from Jooma Properties Check Your Debt-to-Income Ratio: Start by calculating how much of your income goes toward debt payments. The remaining amount will help you determine how much you can afford to spend on a home loan.
Pro Tip: If possible, pay off smaller debts quickly to increase your available income for a mortgage. Evaluate Lifestyle Costs: Consider your monthly spending on non-essential items like entertainment, gifts, and personal care. These expenses can fluctuate, making it essential to budget accordingly.
Set Your Priorities: If certain aspects of your lifestyle, such as travel, are important to you, consider compromising on the size or location of your home to maintain those activities.
Follow General Guidelines: A common rule of thumb is that your housing costs should not exceed 28% of your gross monthly income, and your total debt payments (including housing) should stay below 36% of your gross monthly income.
The broader economic landscape also looks promising. The Government of National Unity appears poised to implement changes that could stimulate growth, driven by a younger, reform-minded leadership. This renewed energy in government, combined with recent stability in the energy sector—evidenced by a reduction in loadshedding—suggests that economic recovery is on the horizon. A stable energy supply is crucial for boosting GDP growth, which can lead to more jobs, increased wealth, and higher demand for real estate.
At Jooma Properties, we’ve observed that the property market is heavily influenced by positive sentiment. People are more inclined to make long-term investments, like buying a home, when they feel confident about the future. For the first time in many years, there’s a growing sense of optimism about the country’s prospects.
The anticipation of falling interest rates adds another layer of confidence. Purchasing property when interest rates are expected to decline allows buyers to secure favorable terms, knowing that future costs may decrease. Currently, interest rates sit at 11.75%, and if they enter a downward trend, it’s an excellent time to buy.
Moreover, property prices in many areas have remained relatively stable over the past 5-7 years, even in higher-end markets. This means that purchasing now could allow buyers to acquire property at prices similar to those from years ago. As the market recovers, property values are likely to appreciate, offering potential gains in the future.
Jooma Properties believes that the current market conditions are particularly advantageous for buyers. Banks are still offering loans with relatively low deposit requirements, and qualifying buyers may benefit from interest rate concessions. Historically, those who purchase property just before a market upswing have seen significant returns on their investment. On the other hand, waiting until the market is on the rise could mean paying a premium.
How to Determine Your Budget: Tips from Jooma Properties Check Your Debt-to-Income Ratio: Start by calculating how much of your income goes toward debt payments. The remaining amount will help you determine how much you can afford to spend on a home loan.
Pro Tip: If possible, pay off smaller debts quickly to increase your available income for a mortgage. Evaluate Lifestyle Costs: Consider your monthly spending on non-essential items like entertainment, gifts, and personal care. These expenses can fluctuate, making it essential to budget accordingly.
Set Your Priorities: If certain aspects of your lifestyle, such as travel, are important to you, consider compromising on the size or location of your home to maintain those activities.
Follow General Guidelines: A common rule of thumb is that your housing costs should not exceed 28% of your gross monthly income, and your total debt payments (including housing) should stay below 36% of your gross monthly income.