Buy-to-let investors target Lydenburg homes

Investors in the buy-to-let market are now active in Lydenburg in response to the rising demand for rental accommodation.

Harcourst Lydenburg is sellinng three-bedroom, tow-bathroom townhouses in this complex close to shops and schools at prices from R710 000 to R780 000

Pieter Minnaar, principal of the Harcourts agency in the scenic Mpumalanga town at the foot of the Long Tom Pass, says almost 40 mines are currently in operation around Lydenburg, and that mine employees make up two-thirds of local tenants.
"Mining is a risky industry and hugely dependent on economic conditions. Consequently, shafts open and close according to market demands, with a concomitant ebb and flow in employee numbers. This results in a fast turnover of mining tenants and keeps the local rental market very buoyant," he says.
And this lively market is attractive to buy-to-let investors, who are currently targeting properties in the lower price ranges. Fixer-uppers are popular, but most stock in this sector has now been taken up and renovated, Minnaar says.
“However, two- and three-bedroom homes in security complexes that sell for R600 000 to R1m now readily find tenants at rentals of R6000 to R12 000 a month.”
Minnaar says that on the whole, the market is significantly more active than a year ago and that the town is also attracting increasing numbers of buyers who work in outlying areas. "Those who work in surrounding towns such as Steelpoort settle their families in Lydenburg because of its schools and shopping and medical facilities. Many such buyers are prepared to commute daily to their workplaces up to 80km away."
Home prices in Lydenburg start at around R600 000 for smaller sectional title units, while full-title properties generally sell for between R1,2m and R1,4m.
Two new town extensions - The Heads and Sterkspruit - have been established on the eastern and western sides of Lydenburg thanks to the growing demand for housing, and although stands of between 600 and 800sqm in these areas are much smaller than those in the older parts of town, home prices are on a par with older properties.
Minnaar adds, though, that financing remains a challenge for local buyers, with about half the applications made for home loans being declined by the banks.

Find more property for sale in Lydenburg

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us