29 Oct 2012
An influx of first-time home buyers seeking well priced starter homes is proving a key driver of market demand for sectional title properties on the East Rand.
This is according to Nelson Ferreira, area principal for Pam Golding Properties (PGP), who says in Boksburg, Benoni and Kempton Park the most sought after price range for homes is from R450 000 to R750 000.
He says in Benoni there is a high demand for sectional title properties, mainly in the price band from R350 000 to R700 000, while Kempton Park and Boksburg are experiencing a similar trend.
“The trendy areas of Rynfield and Lakefield in Benoni; Bartlett, Beyerspark and Ravenswood in Boksburg; and Glen Marais in Kempton Park, are the most sought after as these locations are close to the Gautrain, R21 and R24 highways as well as the ‘buzz’ of the East Rand, including shopping centres, schools, gyms and other amenities.”
He says while the property price growth of secondhand, existing East Rand homes remains stable, the pace of sales in the sectional title market appears to be exceeding this trend.
Sectional title homes in this region are affordable, he says, they offer good value for money, and they are aesthetically pleasing yet functional, as well as being secure.
He says they note a current trend whereby more purchasers seem to be buying townhouses and apartments rather than freehold homes. “It is also encouraging to see that access to finance has eased somewhat, which is further positively influencing the success of sectional title sales on the East Rand.”
As a result of the burgeoning demand for sectional title units, PGP East Rand has launched a specialised sectional title division, trained through Paddocks in association with the University of Cape Town.
With combined real estate experience of 26 years, Nirosh Patel and Sally Wright are able to provide advice on any specialised aspect of the sectional title market. They are able to advise on body corporate rules and levies, special use and common use areas and mediate in the event of disputes.
Ferreira says in adding further value to clients they have also aligned their specialised service offering with Selection Estates (sectional title administrators) and specialist sectional title attorney Marina Constas of BBM Attorneys, who has trained their sectional title agents.
He says sectional title is a specialised and complex arena. It is necessary for an estate agent to be competent and have specific knowledge and expertise in this field of selling, he says.
Misunderstandings occur when a potential buyer has not been given information crucial to making an informed decision when buying into sectional title, says Ferreira.
“It is important that the buyer is provided with the conduct rules of the complex, a recent set of financials, and is informed regarding the monthly levy payments or any special levies in place.”
Ferreira says the rental demand for sectional title units is high across the areas on the East Rand and such units fetch healthy rental returns dependent on size, locality and offering, which may range from R4 500 to approximately R8 500.
This provides sound opportunities for potential investors seeking buy to let properties, he says.
The fact that first-time homeowners are dominating the demand in the sectional title market is further testament to the convenient location, as the East Rand is not only home but also in close proximity to schools and places of work.
Because of this, many buy property as a primary residence and purchasers are certainly mainly a younger generation, he says.
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