Waiting to Buy A Home Could Cost You
| If you aren’t a home owner yet, you may be hoping to buy a home in 2022 or beyond. This may be because you believe that the market conditions will be better. You will, in all probability, ask yourself two questions: Where will home prices be in 2023? What will bond rates be in 2023? Nobody knows where home prices will be in 2023. Besides, some of the banks are forecasting that home prices will appreciate next year. Here is a simple example. Assume that property appreciates by 6% over the next year. A home that sells for R2 Million today would then have a value of R2,120,000 by the end of 2023. Over and above financial benefits, one must think of the security and stability of owning a home. When thinking of when to buy, the financial benefits of doing so now are far better than waiting for 2023. One can see that at current interest rates, there is a window of opportunity for buyers to buy now. So don’t wait for a lower bond rate, as it could cost you more. |
