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
    • 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.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us