LOW INTEREST RATES A GIFT FOR BUYERS

DURING the Covid-19 pandemic, homeowners have been selling properties at around 30% below their market value.

Harold Kolnik, principal of Jawitz Properties South Peninsula, says this, coupled with low interest rates of about 7.5%, opened up a whole new market for sellers to sell to the many first-time buyers who could now afford to buy property.

“The greatest gift that Covid-19 gave to South Africa was the lowest interest rate in the past 56 years. This has clearly revealed the pent-up demand from our less fortunate citizens to acquire adequate, affordable housing and relief from overcrowded living. It would be tragic to allow this rare window of opportunity to slip away.”

He says high property prices prevent the previously disadvantaged from entering the property market, which adds to their hardship.

“It also leads to the growth of squatter camps, land invasions, crime and all the ills that accompany poverty.”

High prices had retarded the growth of a huge secondary economic development preventing the majority from becoming proud stakeholders and productive citizens, Kolnik says.

Many first-time buyers now qualify for home loans, thanks to low interest rates. PICTURE: COTTONBRO/PEXELS