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
Characters remaining

    Latest Property News
    • 23 Jan 2018
      Many people only start thinking about home-ownership when they are ready to “settle down” or start a family, which is why first-time buyers these days are generally in their mid-30s, compared to those in the previous generation who were usually in their mid-20s.
    • 22 Jan 2018
      Moving away from the city to a country or coastal town and a slower-paced life is a frequent new-year resolution for South Africans, but thorough research should be done before you break free from the hustle and bustle, because making the wrong move could turn out to be a very expensive mistake, and even more stressful for you and your family than staying in the “big smoke”.
    • 22 Jan 2018
      Cape Town is home to many breathtaking and historic homes, but House Invermark designed in 1969 by South African architect Gilbert Colyn, with inspiration from two modernist icons: the Glass House by Phillip Johnson and Farnsworth House by Ludwig Mies van der Rohe is in a class of its own.
    • 22 Jan 2018
      2017 was a challenging year for the South African property market in general, despite small pockets of thriving activity in areas like the Western Cape. As we head into 2018, Tony Clarke, Managing Director of the Rawson Property Group, casts his eye forward to property trends and market influences that could make their impact felt in the New Year.
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us