• My Nearest City
South Africa

Roy Lazarus: Property Remains a Sound Long-Term Investment

Property news of late is awash with contradictory market performance projections. It seems impossible to envision the full impact of COVID-19 pandemic on the economy. However, despite the industry’s vastly different views on the post-lockdown property landscape, all unanimously agree that property remains a sound long-term investment.

That’s the word from Park Village Auctions’ Director, Roy Lazarus, who says that buyers from any side of the spectrum—first-time homeowner or experienced investor—stand to benefit from the record-low interest rate.

Lazarus: “Property investment, when entered into with the long-term in mind, has and always will be a sound choice. Right now, the odds are stacked in the buyer’s favour. The interest rate is at its lowest in almost 50 years, and the exemption threshold on transfer duties raised to R1 million. Not mention the Rand’s steady improvement.

“It’s a prime time for first-time homeowners to get a foot in the door in the property market. Veteran investors know all too well how property retains and gains value over time. Just last week [08 June 2020] Fortress Reit reported a spike in interest from potential buyers.”

Fortress Reit is a JSE-listed property group known to hold assets in logistics, commuter-orientated retail centres, and industrial and office properties.

“We, too, have received an influx of enquiries from familiar faces at our commercial property auctions.” Adds Lazarus.

Lazarus offers advice to first-time buyers who may be excited at the prospect of having a lower monthly bond repayment than their current rental:

“Affordability is key. Be sure to factor in the costs for utilities, rates, taxes, and maintenance.

“The interest rate will eventually go up and, with that, your bond repayments will too unless you choose to fix your interest rate.

“Remember that property investment is for the long haul, you have to play the long game to see handsome returns. With that, property terms dictate that seems expensive today is ‘cheap’ tomorrow at the rate that property prices increase. ”

Park Village Auctions Member of Institute of Estate Agents of South Africa. PVA’s Property Division specialises in the valuation and disposal of properties including commercial, industrial, agricultural, sectional title and share-block properties; residential and industrial townships; deceased, insolvent and sequestrated estates. 

For information about properties that are on offer or to be auctioned, visit www.parkvillageauctions.co.za