Mind the gap
The new Westcape Villas development in Mitchell’s Plain provides an excellent opportunity for buyers who fall within the gap housing market, says Charles Haigh, Broker/Owner of RE/MAX Elite, based at the Prospur Centre in the Western Cape suburb of Plumstead.
Haigh says that the development is a Cape Town Community Housing Company (CTCHC) project that is fulfilling a need for housing within the gap market. Gap housing is specifically designed for buyers who earn too much to qualify for the government housing subsidies, yet not enough to purchase a property on the broader property market.
“This development fits perfectly within this gap in the market, as they are well-constructed, affordable homes in the right location, which is in proximity to transport nodes and other local amenities within the area. The development caters for first-time buyers or families with a combined household income up to the R15 000 gross salary bracket,” says Haigh. “Up until now there have been very limited options for would-be buyers that fall within this category and most have been forced to stay within the rental market. Developments such as Westcape Villas will open up the market to these buyers and give them the opportunity to own their own property.”
According to Haigh there has been a lot of interest in the development with approximately 60% of the units already sold. This is remarkable considering the development has between 350 and 400 units planned for construction. “Units are selling fast and are likely to sell out completely in a very short space of time. This is once again to the fact that there has been such a need for these kinds of properties within the market,” says Haigh.
He adds that the properties in Westcape Villas are full-title homes, sold on a plot-and-plan basis. Plots within the development range in size from 90m2 to 128m2, while the houses range between 51m2 and 53m2. Each property is a two-bedroom starter home with tiled floors and carpeted bedrooms, ranging in price from R349 000 to R379 000 depending on their style or type. Haigh says that a double-storey, semi-detached home would sell for R349 000, for example, while a single-storey freestanding house would be priced in the upper-end of the range.
All the homes in the development are sold off-plan only, and successful buyers can expect occupation three months after their bond has been approved, with transfer complete around two months after occupation.
Adrian Goslett, CEO of RE/MAX of Southern Africa says that buyers who opt to invest in off-plan properties benefit the most from appreciation once the development is complete.
“The minimum earning requirement for potential buyers is R10 500 and they will need to have a clear credit record,” says Haigh. “Given the current market conditions, it is an excellent time to buy, and with strong demand in this sector of the housing market, these homes are likely to see a good return on investment in the future,” he concludes.