At the end of the national lockdown, many South Africans will have gotten to know their properties better than the architects who designed them. For some, this time will lead to ways they plan to improve their homes, for others, it will leave them desperately wanting to never see the same four walls again. But how do you enter the buying market again after the lockdown?
The answer is, with extra care. While buying property is never something to step into lightly, the chances of making an impulsive decision once you’ve tasted freedom again are a lot higher than they were before. The best advice would be to treat the experience as if nothing has changed. For the real estate market, this may even be somewhat true.
The real estate market has proven time and again that it is able to recover from even the worst crises, whether it be financial, social or medical. The reason for the market’s stability lies in its properties’ stability. While stock markets crash and abstract financial concepts such as inflation crumble during a pandemic, properties continue to stand unaffected. And while stock trading is quite low on the priority list during a worldwide pandemic, such as the COVID-19 outbreak, a priority that is still at the top is the need for housing. The real estate market, by nature, prevails.
So once the lockdown is lifted, don’t rush things. Use the same diligent consideration in every decision and make sure you invest accordingly.
That said, there is one way in which the lockdown should influence your purchase. Use the negative experiences and shortfalls of your current (or soon to be previous) home to help guide you towards what it is you truly need and want in a home. An experience that may have seemed negative will help you to create a clear vision of what your next home should be.
Once the lockdown has lifted, precautionary measures may still be put in place, especially regarding social distancing, nevermind people’s own fears of entering society again. The future introduction of the Electonic Deeds Registration System, which was promulgated in 2019, will further assist the restoration of the property market even as the scare of the pandemic continues to loom over the country even long after the lockdown has been lifted.
This electronic platform will allow property ownership to be transferred without having to set a foot inside a cramped government office, effectively continuing social distancing and creating a more efficient conveyancing process.
So keep calm and plan your property comeback accordingly.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)