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Low prices buoy sales volumes in Stilfontein

“In Stilfontein it is still possible to buy a three-bedroom ‘mine house’ in good condition for between R350 000 and R450 000,” says Pierre Ludick, co-owner of the local RealNet franchise.

“Consequently it has become very popular with first-time buyers from Klerksdorp and also with university staff and Defence Force personnel from Potchefstroom, which is only a 25-minute drive away on the N12 but where homes are very much more expensive due to the rapid expansion of the university and increase in the number of students requiring accommodation.”

“However”, he says, “even at these low prices, and even if the prospective buyers receive State housing subsidies, we find that the banks are extremely reluctant to grant bonds without a deposit of at least 10% of the purchase price.”

This means that to be safe, those keen to buy in Stilfontein need to save around R40 000 before entering the market, plus about R20 000 for bond initiation and registration and the legal costs of transferring the property.”

On the upside though, Ludick notes, those who do this will reduce their monthly bond repayments, “which can be very important for first-time buyers on tight budgets, especially if interest rates rise”.

Meanwhile in Klerksdorp, he says, there is rising demand now among young professionals for two and three-bedroom townhouses priced at around R1m. “These buyers generally have very busy schedules and appreciate the fact that such units are low maintenance while also being subject to lower rates and taxes than suburban homes.

“We find that there are also many travelling representatives in Klerksdorp buying into secure complexes so that they can be sure their families are safe while they are out of town.”


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