Sales have increased in Brits thanks to lack of municipal services such as water and electricity supply available for new property developments.
The lack of service capacity has also put upward pressure on rentals in the North West town and boosted sales of cheaper properties, says Amelda Scheepers, co-owner of the local RealNet franchise.
“Due to increased mining activity around Brits, we have been experiencing high demand for homes to-let for some time,” says Scheepers.
She says currently there is a marked shortage of rental properties with no relief in sight because no new stock of flats or townhouses is able to be built.
Tenants in Brits can now expect to pay at least R4 000 per month for a two bedroom flat and about R6 000 per month for a three bedroom sectional title townhouse.
As result, she says many people in Brits are opting to buy their own homes rather than renting.
“These potential buyers are especially targeting three-bedroom family homes priced at R800 000, which puts their monthly bond repayment at some R6 500 if they pay a 10 percent deposit.”
She says an increasing number of applicants are able to qualify for home loans because they have taken the trouble to pay down their debts and clean up their credit records over the past couple of years.
“We also pre-qualify all our buyers and are even getting a few 100 percent bonds now.”
Scheepers says her agency is handling an increasing number of buy-to-let transactions, as investors see the potential in the town’s tight rental market.
She adds that investors wanting to cash in on the property market in Brits will need to move fast, because the stock of cheaper flats and houses suitable for letting is also becoming depleted and prices can be expected to start rising soon.