select
|

Kimberley infrastructure problems put homebuyers out in the cold

New housing development in Kimberley, the capital of the Northern Cape, has come to a standstill and first-time buyers are being shut out of the market.
 
Kobus van der Walt, owner of the Aida franchise in the city, says there is huge pent-up demand, and that buyers are “queuing up” to get their hands on any units that do become available now in housing projects that were approved before December 2008, when a moratorium was imposed on any new development in the city.
 
“This is certainly the case, for example, with the Cassandra and Riviera developments, where we currently have around 40 new townhouses for sale. These 100sqm units are priced at between R585 000 and R599 000 and are attracting very strong interest and multiple offers.”
 
And yet, he notes, it is difficult to finalise sales in this price category because of the banks’ extreme reluctance to approve 100% home loans. “The 104% loans that are spoken about apply only to people with a household income of less than R15 000 who are purchasing a home for less than R450 000.
 
“Other young people and first-time buyers who don’t have the cash for a deposit of at least 10% and transfer costs are thus caught in a vice currently, between a lack of new stock at the right price and lack of finance for units at higher prices.”
 
Not surprisingly then, Kimberley’s most active market sector currently is the middle-income suburbs, where the average house price now stands at around R900 000 – and where many of the sales taking place are to second and third-time buyers who are able to pay cash or put down sizeable deposits.
 
As to the future, Van der Walt says the current situation as regards first-time buyers is unlikely to change much until the moratorium is lifted – which will only be when the local authority has spent hundreds of millions of rands on repairing and upgrading the city’s bulk infrastructure, especially its overworked and dilapidated waste-water and sewage treatment plants.
 
 
Issued by Aida National Franchises


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
        
    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