07 May 2013
Michael Zackon of the RealNet Brackenfell franchise reports that new semi-detached homes and apartments priced at around R650 000 are particularly popular among first-time buyers as well as local residents scaling down. Smaller gardens and the minimum upkeep of new properties are great attractions for both groups.
“Young buyers in the area are rapidly becoming aware of the long-term financial benefits of home ownership and are switching from renting to buying,” he says. “And because of the affordable prices in new developments, many young buyers can qualify for the necessary bonds so that transactions can be concluded in good time.”
Investors are also very active in this segment because of solid immediate returns. "Units in this range are easily rented out at between R4 000 and R5 500 per month because there is still strong demand for rental accommodation and investors stand to make excellent returns," he says.
Older properties in the R800 000 to R1.7 million price range are being targeted by buyers with families.
Zackon says family homes in older sections of the area offer three to four bedrooms, typically on large stands of up to 750 square metre. Properties at the lower end of the price range often need modernisation or renovation, but offer young families the opportunity of fixing them up to suit their requirements. Kitchen and bathroom renovations are popular and many families also build swimming pools.
Strong demand for undeveloped stands is a recent trend and supply is dwindling. Prices of stands of about 500 square metres range between R465 000 and R500 000 and Zackon says buyers tend to build large homes.
“Land costs average R1 000 square metre, which allows buyers to build a comfortable home for around R1.3 million. And these homes offer excellent prospects of capital growth because completed units are already attracting offers of around R1.7 million and up."
Eskom employees feature strongly in the Brackenfell market, he notes, and are viewed as desirable buyers because of subsidies provided by their employer.
Zackon adds that Brackenfell remains popular because of its central location relative to Cape Town's CBD, Stellenbosch, Paarl and Cape Town International airport. "The area has easy access to both the N1 and N2 highways, which makes it easy for residents to commute to surrounding towns, while enjoying the benefits of a quiet residential area with good shopping facilities."
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