select
|

Here’s why downsizing is gaining popularity

If you’re planning to sell your large family house and downsize to a smaller property, now’s the time to make your move, says Jan Davel, MD of the RealNet estate agency group.

“The prices of large homes have shown much greater growth in the past year than those of small or medium-size properties, and owners in many areas are finding that it is not only more convenient and secure to move to a smaller home, but that there are immediate financial benefits as well,” he notes.

“According to the latest Absa Housing review, the average price of large houses (220sqm to 400sqm) has risen 6,2% in the past year to R1,94m, while that of medium-size homes (140sqm to 220sqm) has risen only 4%, to R1,22m. And there are even bigger discrepancies in some areas that are giving further impetus to the downscaling trend – and to inter-city relocations.”

Davel says that in Port Elizabeth, for example, the average price of large homes has risen by 27,2% over the past 12 months to R1,86m, while that of medium-size properties has actually declined by 6,5% to just R814 000. “Consequently, owners of large homes here may well be able to use the proceeds of their sale to buy a medium-size home for cash and still have some money left over, especially if they have owned their existing home for a long time and built up their equity.”

Similarly, he says, downsizing is set to gain momentum in the southern suburbs of Johannesburg, where the average price of large homes has risen 11% to R1,73m in the past year, and the average price of a medium-size home has risen only 3,5% to R972 000.

Meanwhile, the Absa figures also show that Cape Town is currently the most expensive city in which to buy property, with an overall average home price of R1,72m for the past 12 months. The average price for the northern suburbs of Johannesburg was higher, at R1,78m, but the average for the city as a whole was only R1,45m.

By contrast, the average price in Pretoria was R1,51m and that in Bloemfontein R1,46m – which indicates, says Davel, that many of those considering a move out of Johannesburg for work or personal reasons would also be well-advised to consider downsizing somewhat unless they want their monthly bond repayments to increase.

“On the other hand, if you are selling a big house in order to retire, it might be a good idea at this stage to research moving to another city or province where the proceeds of your sale will go further in the purchase of a new small or medium-size property.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK