HOUSES ARE CHEAPER fast expensive
Cheap houses at a rate blitsvinnige expensive. Lightstone Risk Management yesterday published its house price index, and accordingly, the average price of homes that are less than R250 000 cost, last year rose 42.6%. Houses with a value between R250 000 and R700 000 in value over the past year to March rose by 22.4%. Houses in the high-value luxury category, with 12.7% and 10.7% respectively cent. According to a statement showing that investments in the lower portion of the market all the more sense.
Mr. John Loos, eiendomsekonoom of First National Bank’s commercial open division, says in a statement how expensive houses are, the more people move down in the market to cheaper properties. Furthermore, rising interest rates chase people lower down the chain of properties, he says. He also mentioned the National Credit Act as a new contributing factor. According to him more and more people to smaller home loans forced. All of the inflation pressure on cheaper houses uphold. A unique aspect of Lightstone’s house price index, is his analysis of coastal properties to non-coastal properties. Lightstone measuring houses within 500 m of the coast is built separately from other houses. According to Su analysis coastal properties experienced less inflation pressure, with 10.3% for the year to March.
House prices in the rest of the country was in the same period, almost twice that of inflation experienced by 19.5%. S charge that is due to the pressure of high interest rates r on coastal properties instead. Tue properties are usually the second property and are not purchased to attend. Vacation properties are not a necessity and many potential buyers wait for better interest rates earlier before they buy, Lightstone’s statement reads. Loos s di trend will continue, with coastal properties will be less affected by inflation as metropolises, especially in Gauteng. Three of the Gauteng metropolis huisprysinflasie has accelerated somewhat over the years. Johannesburg average inflation of 18.3% from March 2006 to March 2007 showed 18.7% while Tshwane experienced. It is also the highest nationwide for huisprysinflasie metropolises. The good news is that Lightstone, like other huisprysindekse, a slowdown in the national inflation rate was detected.
Where Lightstone for the year to February, a 19.2% inflation is measured, it is for the year to March 18.8%. According to the statement, it is still well above the consumer price index and show that the housing market the interest rate skillfully. Lightstone’s index differs from others because it huisprysindekse herverkoopprys measurement of properties, rather than an average house price on the market.
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