New micro-living apartments allow first time buyers easy access to the property ladder

The micro-living trend has arrived in South Africa and is making it possible for easy access to investing in property.

1 On Albert in Woodstock Cape Town is a block of micro apartments that, once completed, will range in size from entry level 21 square metre studio apartments, at a cost of R1,095 million, to 75 square metre two-bedroom units, at a cost of up to R2,650 million for the bigger apartments.

Rob Stefanutto, Group Managing Director of Dogon Group Properties, the sales agents for the development, explains that these prices, which are inclusive of transfer duty, equate to a monthly bond installment that is in line with, if not lower than, current rental figures for the area. 

Affordable, attainable bonds for first time buyers

“Those earning a gross income of between R18 000 and R25 000 per month should qualify for finance through Nedbank, who have come on board as partners to offer first time buyers innovative finance that includes 100% bonds, reduced interest rates, discounted registration fees, no initiation fees for those earning less than R22 000 per month, and discounted attorney fees.

Theko Mafulako, Regional Sales Manager for Home Loans at Nedbank, says that the provision of housing is a vital component of social transformation and empowerment efforts across South Africa.

“At Nedbank, we understand the need to own a home - and the barriers that first time buyers face. We thus welcomed the opportunity to partner with Dogon Group in the Western Cape in order to help buyers secure their first home in the 1 On Albert development.”

“The deals being structured for 1 On Albert fit in very well with Nedbank’s mission of enabling home ownership in South Africa - and more importantly, for those buying their first homes.”

According to Stefanutto, micro living units have been popular internationally for several years and we are now following this trend in Cape Town.

“Millennials are looking for location over square footage. They want to be close to the city centre, close enough to walk, bike, or rely on public transportation. However, with cities becoming increasingly over-crowded there is not only a shortage of housing, but also the cost of properties has sky rocketed to such a point that young people cannot afford to buy their first property and get onto the property ladder – forcing them to rent on an ongoing basis,” says Stefanutto.

Recognising this, 1 On Albert, which is the first offering in a collaborative partnership between Dogon, AJ Developers, Power Construction and Gardner Property Solutions, has been designed to let the consumer buy their first home.

GP Wentzel, one of the first time buyers to purchase a unit at 1 On Albert, says that he had been looking for a property for over a year and jumped at the opportunity to purchase at 1 On Albert when the development was announced.

“1 On Albert has all my friends in property buzzing with excitement due to the location in the upcoming suburb of Woodstock, the great concept, and above all the incredible investment value to the first time buyer. This was my chance to finally kick off a dream to own property in Cape Town.”

Travis Munthree, another first time buyer at 1 On Albert says that with most newer developments in prime locations starting at exorbitant prices, many young professionals are concerned about being able to enter the property market in Cape Town.

“Young professionals often cannot meet the criteria to afford good property and are forced to pay high rentals in the CBD. The 1 On Albert development has offered an innovative approach to finance, and property design. It is a great way to empower young individuals to start growing their wealth by substituting similar rental in high demand suburbs with bond re-payments for their own home. The developers of 1 On Albert should be commended for understanding the need of the Cape Town market and tailoring a product to meet it.”

Omphile Matsomela says that he opted to purchase at 1 On Albert because of the price and location offered. “It is seldom that one finds reasonably priced property in a centrally located area in Cape Town, and for myself as a young working adult this opportunity to invest in my first home was not to be missed!”

Minimal investment leakage, maximum profits

“The key to the value chain in real estate is to get on the property ladder as early as possible and 1 On Albert is providing the missing link to the property value chain,” says Stefanutto.

Stefanutto further explains that another benefit of these micro living units for cash strapped young buyers are the low monthly levies and rates – a cost which, in the case of many other developments, creates a barrier for budget conscious first time buyers.

A significant development for Cape Town’s young property buyers

“1 On Albert allows a whole new segment of customers to enter the property market through upmarket entry level units.”

All the apartments at 1 On Albert, which were designed by award winning architects Louis Karol and the interiors of the apartments designed by leading hotel room designer Grant Gillis of Delta Interiors, will feature top end SMEG appliances, flat screen smart TV’s and uncapped, unshaped 100megs per second fibre internet – to name but a few of the features. The development will also feature communal recreational spaces, shops, a food court, laundromat, heated swimming pool and more - all part of a new conceptual design in living known as integrated living solutions.

“Construction will begin on 1 On Albert in February 2018 and 70% of the units have now been sold,” concludes Stefanutto.

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