The house hunt is on again, in full swing. Hopefully we will have some property in our names by the end of this month. Time will tell. We signed another offer to purchase last night. The last one was unsuccessful. What the people here do not seem to realise is that the property market is in a slump.
The credit act and the global bank crash has had a profound effect on the lending practices of banks here in SA. I.e. less people can afford loans, and the banks are stricter and more loathe granting them. And, as demand for houses decreases, the supply increases. And, that, friends and (soon-to-be) neighbours, is why the general property prices have fallen.
A turn around is expected by around next year April. Some analysts argue that this is an overly optimistic view. In the meantime, people need to realise that what they paid at the beginning of the year, or 2 years prior, is not what they’re gonna get now. Back then the market was in an upward turn, fuelled by the bubble of granting home loans people can’t afford. The credit act has helped shield SA from the brunt of the credit crunch, but no one could have predicted the rise in interest rates (10 times in the last 2 years).
So, what you could afford back then, already stretching your budget to the max, in keeping up with the Joneses, has become the bane of your financial existence now.
This also explains why repossession of property has climbed. Banks have to take and auction what clients can’t afford to maintain.
It seems that the “nesting” effect is kicking into gear for me lately. I find myself organising and reorganising my meagre cupboard space. My current domain is the hubby’s room in his parents’ house. I have half the cupboard and double the drawer space.
Yesterday, when I got the call that we are gonna put in an offer to purchase a home, my imagination went just wild at the prospect of picking out colours and decorating my first ever home. This has been dampened somewhat by the news that we will in all likelihood only be able to move in at the end of January of next year.
I’m sure everything will work out in the end. Patience is a virtua.
There will be another baby scan tomorrow. I wonder what she looks like these days. Just a couple weeks before she swims out to say hi. Hope we’ll have somewhere to put her when she does!
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2 comments:
If one can afford it, is it now a good time to buy a house?
So how is it to live with the in-laws? Do you find it difficult or easy? Especially with them being such a high profile family these days. (Maybe a public forum like this is not an appropriate place to talk about your parents-in-law... maybe you can email me the answer.)
35 weeks... you can just about start to count the days!
House prices are lower now than they've been in a while, so I'd say so. It's important to still note the LOCATION of the house. That is and will always be the determining factor in house buying. You wanna have the crappiest house in the nicest neighbourhood. ^_^
Living with the in-laws is okay. Dis mar net sy ma, suster (laas maand begin werk) en broer (matriek).
Politics is a bigger deal in the house - lots of tv time go towards that and the news.
otherwise things are mellow. my life hasnt changed much since I moved, other than me being happier. ^_^
His dad is rarely here. So, I remain, as always, largely unaffected.
^_^
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