According to ooba, (formerly MortgageSA) slower property market conditions present the best buying opportunity in years for first-time buyers and upsizers.

Saul Geffen, Chief Executive of ooba, says that while there are fears in the property market from higher interest rates and a slowdown in price growth, buyers should recognise that these conditions are actually positive for those wanting to get on the property ladder and those looking to upsize.

“It’s a buyer’s market now out there, with much more realistic sellers. But the current level of fear in the property market is overblown as the situation is temporary and directly linked to interest rates. As soon as interest rates come down, which is expected in the last quarter of this year, price growth will accelerate with demand.

“After prices soared in 2003 and 2004 in particular, price growth is now falling into single digits but likely to pick up next year and especially towards 2010 when we may well see increases of over 15 percent.

“Like all investments, savvy people with a longer term time frames capitalize on these softer times to make purchases.”

Geffen notes that first-time buyers have had a tough time of it of late but now they have more power and should use it to negotiate a good deal.

“However, if you want to move onto the ladder, good preparation is important so you can move quickly. And that means getting pre-qualified for a home loan and keeping an eye on the market in the area you want to move to.

“The tip is to be well researched and haggle hard.”

Geffen also points out that it is also much more advantageous to move up the ladder in a slowing market, something that existing homeowners often overlook.

Article from: www.iafrica.com