select
|

Property buyers value lifestyle over value-growth prospects

Location, price and security are generally the "big three" for homebuyers, and that will no doubt continue to be the case, but the definition of what makes a great location appears to be changing, says Shaun Rademeyer of BetterLife Home Loans.

"The focus used to be on potential investment returns, and buyers would scramble to buy in areas which had proved themselves to deliver above-average property value growth, or where prices had continued to rise even when the economy was not doing so well.

"Now, however, lifestyle factors are coming to the fore. Buyers will, for example, target a certain school they wish their children to attend and then buy a home close to that school. Or they will choose to buy in an area close to work so they don't have to spend hours commuting, or perhaps in an area that is close to the beach or has a lively nightlife and so offers them great leisure facilities," he notes.

"In short, the way they envisage actually living in their new home and community has in many instances become more important to them than the returns they stand to make when they sell that property.

"And this is of great relevance to home sellers and their agents because it presents an opportunity to target buyers based on their interests and preferences."

Rademeyer says the shift in priorities may well have something to do with the fact that first-time buyers are currently much older, on average, than their parents were when they bought their first homes, and so do not expect - or want - to move as often as their parents did.

"Many first-time buyers now are already in their mid-30s, and in many instances they are buying a ?forever? home in which they intend to raise their family and bequeath or sell to their children when they retire. So it?s no surprise that they are looking for locations they feel will offer them all the facilities they need in the long-term, as well as a community they can relate to."

What is more, SA is not the only country where this is happening, he says. A recent survey by Better Homes & Gardens and the Meredith Corporation in the US, for example, showed that the level of purchase satisfaction for home owners depends significantly on the surrounding community and lifestyle priorities including:

• Ease of commuting by car - 38%
• Access to health and safety services - 34%
• Family-friendly neighbourhood - 33%
• Proximity to shopping centres - 32%
• Access to cultural activities - 21%
• Public transportation access - 19%
• Nightlife and restaurant access - 18%
• Golf-friendly area or easy access to golf courses - 6%

"And from the point of view of home sellers, it helps to know that the above priorities can influence buyers so that they and their agents can make the most of those that apply to their properties when compiling their advertisements."

Rademeyer says sellers usually focus on the specific details and features of their homes, and forget to paint a bigger picture for prospective buyers.

"But factors like easy freeway access, great local schools, friendly neighbours, a local nature reserve, a beach nearby or lots of trendy shops and restaurants within walking distance of home can make all the difference now to whether a buyer chooses your home over a similar property in another area."


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 18 Oct 2017
      Submitted an offer and having it accepted by the seller is exciting, but it is certainly not the end of the property sales process. There are a few more obstacles that need to be overcome before the home can change ownership and the keys are handed over. Failing to overcome any of these hurdles could result in the deal falling through and you starting the journey from the first step.
    • 17 Oct 2017
      It is relatively straightforward to make a good property investment when the economy and housing market are booming. As the old saying goes - a rising tide lifts all boats. However, says Sandra Gordon, Pam Golding Properties senior research analyst, when the economy is struggling with low growth – as South Africa’s currently is, there are still opportunities for investments
    • 17 Oct 2017
      In recent years, residential property investment has been highlighted for its value as an income stream when the property is bond-free, especially for those owners in their retirement years.
    • 17 Oct 2017
      As technology improves, so does the level of property scams that do the rounds, and while every precaution seems to be taken, there will be yet another thing that fraudsters find to dupe people out of large sums of money, warns Johnny Henkes of law firm Henkes Nolte-Joubert.
    • 16 Oct 2017
      With Accelerate Property Fund owning a large portion of business right land and partnering with the Fourways Precinct, residents in this (and surrounding) areas can almost be assured that the plans for the improvement and development of the area will increase residential property values exponentially in the coming year
    • 16 Oct 2017
      You have done your homework thoroughly, researching the market and current trends in the area and gaining a clear understanding of the renovation process you have in mind. You are not discouraged by the time and dedication required nor the plethora of possible minefields, and you decide to take the plunge. What next?
    • 16 Oct 2017
      In the past, if a sectional title scheme appointed a managing agent, the trustees would still have to be actively involved in the decision making and management of the scheme. The Sectional Title Schemes Management Act (STSMA), however, makes allowance for a new type of managing agent – the executive managing agent - which could almost be seen as putting the scheme under voluntary administration.
    • 13 Oct 2017
      The violent storms that have swept South Africa over the past week have left many people with one question on their minds: “I wonder if my insurance will cover the damage?”
        
    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