Owning a home gives you roots, freedom over your living space, and a sense of pride. It's truly the South African dream. While 2020 has been a tough year, there's great news if you want to climb the property ladder. It's still a buyer's market right now. The increased housing stock and low demand are giving you the upper hand. You can easily find a Bloemfontein home that matches your budget and lifestyle. Here are some of the factors working in your favour.
Record-low home loan rates
In July, the repo rate was slashed again, bringing it down to a historic 3.5%. This brought the prime lending rate down to 7%. With this cut, you'll have less of a challenge in qualifying for a home loan. Plus, you'll pay your new home loan at a much lower interest rate. For example, if you took on a bond of R1,000,000, (over 20 years) you'll pay R7 752 each month. This is a significant saving of R1 898.
Raised zero-transfer fees threshold
Thanks to the National Treasury, you now have a sweet incentive to get in the property game. In February, they raised the zero-transfer fees threshold. If you're buying a property costing R1 million or less, you'll no longer have to pay a transfer fee duty. Previously, only properties priced at R750,000 and below were exempt from this payment.
Rise in 100% home loans
If you want to take advantage of the attractive home loan rate and zero-transfer fees threshold, you can. Banks are motivated to help first-time buyers. Ooba, the bond originator, reports banks have introduced the 100% home loan. This allows you to get a home without paying a deposit. Some banks have taken this a step further with 105% home loans. It's ideal if you need to pay additional property-related charges upfront.
FLISP subsidy ceiling increased
The Finance Linked Individual Subsidy Programme (FLISP) is a housing subsidy for first-time homebuyers like yourself. The subsidy is paid to your bank or financial institution and helps to reduce your monthly loan instalments, giving you greater purchasing power. Those who qualify can now get a subsidy of up to R870,000 - a big jump from the previous average home loan amount of R680,000.
Good value-for-money suburbs
Many Bloemfontein suburbs provide access to good schools, shopping centres, healthcare facilities, and restaurants. As many neighbourhoods are less crowded than bigger cities, they're appealing if you're looking for a bigger property with the opportunity to have a home office or study space.
They're also proving to be good for investment. The average sale price for many Bloemfontein erven and section titles have increased since 2011. These include areas like Langenhovenpark, Universitas, Dan Pienaar, and Pellissier.
Affordable Bloemfontein homes
The City of Roses boasts affordable homes priced at R700,000 or less. Presently, Century 21 Bloemfontein has 41 properties and homes for sale on our website. Of these, 11 fall within this range. Properties include vacant land, apartments, sectional titles, and freestanding houses. Here's a snapshot of the Bloemfontein homes you can make your own.
- 3-bedroom house in Mandela View: This is a new home set in a sectional title. It's perfect to raise your family with enough yard space for the kids to play. Price: R640,000.
- 2-bedroom townhouse in Langenhovenpark: This property boasts both starter home and buy-to-let potential. It has an open-plan dining/lounge area with a door leading into a neat little garden. Price: R650,000.
- 1-bedroom apartment in Arboretum: Comfortable living doesn't have to break your budget. This home has one bedroom, one bathroom, and a kitchen in tip-top shape. It is well located near shopping centres and popular schools. Price: R410,000.
Buying your first home is an exciting but daunting journey. Century 21 Bloemfontein has your back when it comes to making a real estate decision. Our SMARTER. BOLDER. FASTER.™ property professionals will guide you through the process. View our properties for sale and make contact to get started.