Although many people only start thinking about home-ownership when they are ready to “settle down” or start a family, experts say it’s never too late to begin investing and planning for the future.
According to property expert Gerhard Kotzé in an article published on Get It Joburg East, it can really pay to get a start in the property market much sooner. While the idea of acquiring property might seem daunting to those in their early years, taking the plunge is said to have some serious benefits.
The first of these, noted Kotzé, is that a home is not only an investment, but also an appreciating asset. This means that the value of the property will steadily increase, and that owners who sell after a few years can confidently expect to show a positive return on their investment.
“The latest research by property data company Lightstone, shows that the average period of ownership among first-time buyers is 12 years, and after that period, owners will usually also have paid off a substantial portion of their bond and generated ‘equity’ in their home. The equity can then either be added to their profit on resale or used to fund other investments.”
“Building this equity by repaying your home loan each month is effectively the same as putting money into a savings account and getting paid interest at whatever your home loan’s interest rate is – which is usually a better rate than the banks pay on savings – and tax-free,” he said.
Kotzé also added that the longer buyers stay in their own homes, the more cost-effective ownership becomes when compared to renting. Read the full article here.
Need further clarity on property acquisition? You might want to give Pam Golding a call, the city’s best estate agent.