There are various views on the current property market, but there is always that thought that when times are tough, it is time buy.
But are times actually tough?
Well, no doubt the South African economy is not in as good a shape as it could be but there is still a good demand for the less expensive properties both to live in and to invest in.
With the current low interest rates, it is actually cheaper to own than to let.
Like I have said before, today’s interest rates are as low as they were when I came into the market in 1975.
This week the Reserve Bank decided to keep the interest rates unchanged but I am not sure how much longer they will stay like that.
I however believe when they do rise, it will be slow and low.
No doubt, if you are letting you should consult your estate agent to do a few figures for you.
Not only is it always better to own than rent, it is especially important now because interest rates are very low.
It is the ideal time to buy and make a real effort to pay off your bond or at least pay as much as you can before rates start to rise.
From an investment point of view, remember that you make two profits from property.
One is the increase in the selling price over time and the second is the income that you get from letting out.
Simply ask anyone who bought a property 20 years ago and find out what it is worth today.
I bought my property for R18 000 in 1975 and it is worth R1.5 million today.
Do you really think that I could have saved that sort of money in cash even over such a long time?
For me, the answer is no.
It’s not easy to save money over such a period without being tempted to use it.
Perhaps this is the right time to change from being a tenant to being an owner.
⦁ Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.