Now is the time to buy property on the KZN South Coast, where bargains currently abound.
That's the opinion of several Homenet principals with offices in the area, who note that properties in the popular holiday destinations of Margate, Pennington and Scottburgh in particular are offering "never-to-be-repeated" value right now.
Joe Foxcroft, principal of Homenet Hibiscus in Margate, says properties priced below R1,2m are currently in highest demand and that about 40% of sales on his books are investment purchases, many made with cash.
The flourishing rental market in Margate is boosting investor confidence, with rentals currently averaging around R4500pm for a three-bedroom house, depending on the view and locality.
In Pennington, property sales have tapered off somewhat but investor confidence is rallying says local Homenet principal Des Robb. Properties under R1m are moving well again and two new developments are poised to give the area a shot in the arm.
Pen Valley Estates is complete and already has a clubhouse up and running. Twelve homes have also been built and the nine-hole golf course is already open to golf fundis. Stands measuring 600sqm's are selling for R450 000 and fully developed stands for R1,6m.
The other development is Rovadale at which only seven stands measuring between 600 and 900sqm have been made available. Prices start at R350 000 and all services are already in place as well as an electric fence and gate.
'Another positive indicator going forward is the strong holiday rental market," says Robb. We were concerned that this segment of the market would slump but it has remained surprisingly robust. Most holiday lets for this year are fully booked and are being rented for between R700 and R1000 a day."
In Scottburgh, holiday lets have decreased but permanent rentals have increased, says Rudy Naiker, principal of Homenet Scottburgh.
Homes are letting for between R3500 and R4500 a month and those priced at less than R1m are also selling relatively well.
ISSUED BY HOMENET