L&S Pr
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SILVER LININGS PROPERTY PLAYBOOK Silver Linings Property Playbook
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the beginning of the year, 2020 was dubbed “Twenty Plenty” by stockbrokers, due to record highs in stock markets across the world. The markets have changed significantly since then, but the moniker could aptly apply to the property market as there have been a significant number of opportunities.
FROM THE START of the national Lockdown on 27 March 2020, to the gradual easing of various customer-facing sectors, including real estate on 1 June, the property landscape has changed drastically. The rate cut, together with the current market conditions, an increase in the supply of properties & serious sellers with an urgency to sell, creates the perfect environment to buy property, and real estate agencies have already seen a flurry of activity. Below we have highlighted just how the property market has changed since the COVID-19 lockdown, and how buyers, sellers & investors can benefit from the changed landscape: • On 21 May 2020, the South African Reserve Bank cut the prime lending rate by 50 basis points to 7.25%. The cost of financing a property has not been this low since the 1970’s, making it the perfect time to invest. In the current market you will be looking at an 8 - 11 % gross rental return. This means the rental income should cover most, if not all, your bond repayments at the current rates. This coupled with capital gain will give you an excellent return on investment.
