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Property experts answer questions about buying or selling property in this tricky time.

 

Buying or selling a home always requires research and careful consideration. In these unprecedented times, however, making these life-changing decisions can be more difficult. Our experts offer insight to help property buyers and sellers make the best decisions.

 

Q: I have found a home that I love, and am so tempted to buy it, but it is priced at my maximum budget. I’ve been told this is not a good idea, but since I really love the home, would it not be worth it?

A: You can be tempted to buy a home that might stretch your budget but overextending yourself is never a good idea as you risk losing your home if the unexpected happens and you fall on tough financial times. You’ll also have less wiggle room in your monthly budget for other bills and expenses. – Claude McKirby, Lew Geffen Sotheby’s International Realty

 

Q: The repo rate has just been cut again but, in practical terms, what does that mean for me as a soon-to-be homeowner?

A: On a R1 million bond at the current prime rate of 7.25%, monthly repayments have gone down from R9 400 a month to R7 900 a month – a difference of more than R1 500 or 17% a month. That’s meaningful, especially if you consider that it’s an after-tax saving. If you also factor in the petrol price reductions over the past few months of almost R4 a litre, consumers will have some additional disposable income. The rate cuts will also mean lower repayments on all other forms of credit, including car finance, personal loans and credit card balances, which will bring further relief to many households currently in financial distress due to the Covid-19 lockdown. – Herschel Jawitz, Jawitz Properties

Read more: Experts answer your property questions