select
|

Hot demand for affordable family homes

Affordability will remain the name of the game during 2012, says Mark Brickles, Broker/Owner of RE/MAX Ultra Select, which operates in regions Grassy Park, Strandfontein, Zeekoevlei, Muizenberg, Ottery, Lansdowne, Rondebosch East, Plumstead and surrounding areas.

Brickles believes that family homes in the areas he services, which are marketed to the middle-class man in the street, will be in the greatest demand during 2012, particularly those homes that are for sale under the R1.5 million mark.

“In my opinion the affluent areas are still unaffordable for many potential home buyers and the top end market will remain sluggish due to affordability. Family homes that offer more bang for the buyer’s buck will be sought-after by property investors,” says Brickles.

He says that Cape Town’s southern suburbs below the main road, M5 and railway line will be the areas in which buyers will be able to find these affordable homes. An area such as Rondebosch East, for example, can reflect a difference in price of R1 million or more in most cases, to a very similar property in Rondebosch, even though these areas are only separated by one road.

According to Brickles, the reason that demand for well-priced family homes has increased is due to the fact that they offer buyers the greatest value and lowest cost per square metre. Often buyers looking to buy a small two-bedroom flat of between 50m2 and 60m2, will only pay between R200 000 and R300 000 more for a three-bedroom family home on a 500m2 plot in the same area.

“I believe these homes are currently undervalued because although many middle-class buyers were interested in these properties, they have been unable to qualify for mortgage finance over the last few years due to high debt levels, which in turn has led to an oversupply. Now that many of these buyers have significantly reduced their debt levels and are once again eligible for finance, judging by the first few weeks of 2012, they are flocking back to the property market and snapping up these bargains,” says Brickles.

Adrian Goslett, CEO of RE/MAX of Southern African, says that since financial institutions have slightly relaxed their lending requirements over the last few months, there has been a higher home loan approval rate, with as many as 50% of all homeloan applications being approved. This, coupled with steady, low interest rates and a number of affordable homes available on the market, will see more buyers entering the property market.

Offering some advice to buyers entering the market, Brickles says that due to the increase in demand for property, buyers should arrange for a pre-qualification on their finance to save time. “This will give buyers an idea of what mortgage they qualify for, and help them determine what monthly repayments they will be comfortable with. It will also narrow the search down to the properties within the buyer’s price range, as well as avoid possible disappointment should the buyer find a property they like but cannot obtain the finance for,” Brickles concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    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