Older buyers invest in Pretoria East

Older buyers with cash to invest are finding good value in older suburbs to the east of Pretoria.
So says Dr Willie van der Merwe of the RealNet Watermeyer office, who  reports that retirees and buyers approaching retirement are targeting properties in suburbs such as Silverton and Lydiana.
“They are either downscaling or are buying property as part of their retirement portfolio,” he says, “and they are buying now because they expect the market will turn in the near future, which will probably see prices rising. They have also done their homework and are choosing properties in areas where residents have started their own street patrols and make use of very sophisticated security systems.”
Van der Merwe adds that confidence in the area has been boosted by the completion earlier this year of multiple staff residences at the British Embassy in Brummeria, as well as the extensive upgrading of the Watermeyer Park shopping complex currently underway.
“Prices are attractive right now and compare with prices last seen two to three years ago. But contrary to many opinions, I don’t think that prices have necessarily ‘fallen’. It is rather a case of the market correcting the practice of loading loans, which was widespread during the boom.
“At the height of the boom, many buyers applied – and qualified – for bonds that included all related purchase costs, such as transfer and registration fees. When these properties were registered, the bond amount was misrepresented as the purchase price, which was patently not the case.
“Equally, there is fierce criticism of banks’ current stringent valuations of properties. Bank values are often 10 to 20% below asking prices, but this, in my view, contributes to correcting a market distorted by the practice of price loading.”
He adds that properties sold on auction also influence the market because lower prices achieved put downward pressure on prices of property sold on the open market. “All these factors combine to make property in the area a very attractive proposition for cash buyers,” he says.
First-time buyers, on the other hand, have a tougher time even if they qualify for 100% bonds because asking prices are higher than the values banks see.
Older buyers are targeting properties in the price range of less than R1m, while younger buyers are showing interest in townhouses under the R500 000 mark.
Issued by RealNet

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us