If you are wondering what the benefits are of buying property when interest rate cycles are high, you have certainly come to the right place. There are so many sources to confirm the benefits of buying property when interest rates rise, here is one.
Here Are The Top Reasons Why Buying Now Is A Very Good Call:
- Lower sales prices: Higher interest rates often lead to house price reductions, and certainly in certain areas. A buyer’s market often decreases the demand for properties. This may often result in lower property prices certainly in certain parts of Randburg. Now is the brilliant time to negotiate a good deal at more affordable prices.
- Savings returns: If you’ve been saving money in interest-bearing accounts, higher interest rates can mean better returns. You can potentially use these savings as a larger deposit when buying your dream home. You could cover some of the costs when you buy as well.
- Stable Investment: Climbing interest rates can often lead to more stability in the real estate market. A buyer’s market is a normal cycle and prices will go up again. Property values may come down a little in your favour now but prices will go up again. Property is still a good long-term investment.
- Rental income: With a higher interest rate, some potential property owners may opt to sell and rent a property. This stimulates the rental market.
- Financing costs: Home loan providers may be more inclined to lend money during a higher interest rate cycle, because they earn more interest on their home loans. Secure a good rate today and we can assist with that.
- Inflation hedge: Real estate is often considered a hedge against inflation. When interest rates are higher due to inflation and other factors, property values will rise again over time. Higher interest rates do tend to correct pricing in the market however painful that may be if you are selling a property in Randburg.
Are You Searching For Your Dream Home At Competitive Prices?
There are so many reasons to buy property now. As a seller that may not mean that you will get the price you wanted originally and you may need to consider a price drop, but this is a normal property cycle that corrects the market.
Demand For Property Is Lower And The Market Is Competitive
Demand is generally a little bit lower, and buyers have more choices for properties as market activity slows down and property sales take longer to sell.
Your Dream Home Is A Click Away
If you are shopping for your dream home, now is a good time to buy. Buy your dream home with KW Select. Your dream home is just a click away. Click here to view all the dream homes KW Select has on the market at the moment.
