select
|

Just a little lending unlocks whole Midrand market

So says Julie Davison-White, co-owner of the high-profile Aida Midrand franchise, who notes that the vital key to this shift is bank lending to first-time buyers to acquire homes priced at around R350 000 in areas such as Tembisa, Kaalfontein, Ivory Park and Ebony Park, to the east of the N1 freeway.

 

“First-time buyers with good credit records are now able to get 100% bonds to buy these properties, and of course there is no transfer duty payable on homes costing less than R500 000, so there are lots of sales now taking place in these areas.

 

“And that is enabling the sellers of those homes to come and buy properties in Midrand, which they are doing in ever-increasing numbers in suburbs such as Noordwyk, Vorna Valley and Halfway Gardens, to the west of the N1.

 

She says the properties most in demand among the incoming buyers are freestanding or stack simplexes in secure sectional title complexes, at prices in the R450 000 to R550 000 range – the owners of which are then free, in their turn, to upgrade to clusters and freehold homes in the R650 000 to R900 000 price range.

 

“In other words, the market has changed back to its normal dynamic and completely altered the picture of the past two years, during which we sold large numbers of distressed properties in co-operation with various banks, and in very many cases saw the sellers of those properties leave the market altogether or at best become tenants.”

 

Davison-White says that buyer numbers in Midrand are also being supplemented now by people choosing the area for its strategic location between Johannesburg and Pretoria. “For example, people who live in Pretoria and currently commute to Johannesburg every day would like to avoid having to pay the new tolls shortly to be introduced on this route, and of course cut the hours they spend in very heavy traffic.

 

“However, Johannesburg has its own traffic congestion problems, and Midrand definitely has the price advantage over areas that would otherwise be the target of such buyers such as Sunninghill and Fourways. It also has several excellent schools and top-class shopping centres within easy reach of home – not to mention its own Gautrain station.      

 

“Consequently, we are expecting further steady growth in demand here over the next year, and an increase in sales of houses in the R850 000 to R1,5m category, provided that these are well-priced by the sellers and that the buyers  have cash to cover deposits of between 10 and 20%.”

 

Issued by Aida National Franchises

Aida head office: 012 682 9600



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 21 Nov 2017
      As more and more South Africans look to invest in property abroad, Spain is offering them one of the best deals in global real estate.
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 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.
        
    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