The current ongoing economic squeeze and other factors including the NCA and stricter bank criteria, are forcing home buyers to scale down their expectations. According to Kim Woods, Manager of Seeff Berea, there are many properties across the region that are priced at under R500k and represent good value.
Woods says they currently have about 47 properties for sale at under R500k. "These include a unit in a retirement complex for R450k, a couplet in Essenwood Road for R425k, a one bed unit in a modern complex with pool and 24-hour security for R470k and a 1.5 bed unit in an art deco building for R430k."
"We have found that this is the market that has been hardest hit, as investors who were purchasing this type of unit before are cautious. First-time buyers are now right out of the market as they have to have at least a 10% deposit plus their costs, so are deciding to rent instead," says Woods.
Silven Chetty of the newly opened Seeff branch in Richards Bay on the North Coast says properties ranging from student and bachelor flats to starter homes and homes on golf estates are readily available. For example, in the R500k price range, a buyer could pick up a two bedroom flat in Meerensee or a one or two bedroom unit with a lock-up garage in a secure complex in Richards Bay Central, a newly built-up area. Chetty adds, "In Brackenham, a popular middle-income suburb, ideal starter homes with two to three bedrooms are also available in this range."
With the distance from Johannesburg to Richards Bay only around 600 km, the town offers the perfect opportunity to own a holiday home at a reasonable price, he says.
Another popular holiday spot is Margate on the South Coast. Elsabe Els of Seeff Margate says they do not have many properties for under R500k but adds that "you can still get a one bedroom flat for that price".
"The bottom line is that the property market is a cyclical market. It may be down now, but it will pick up again – and people who did not take advantage of these good opportunities are going to kick themselves when the market turns," says Els.
Another bonus of buying properties for under R500k is that there is no transfer duty payable, if bought by a natural person as opposed to a cc, trust or company.
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