The current financial crisis in which South Africans find themselves presents a unique opportunity for millennials and first-time buyers who might now be able to find their dream home at a price they can finally afford. As an additional incentive, at just 7%, interest rates are at the lowest level since 1973. This makes it easier for first-time buyers to afford the repayments on their home finance.
SEE | SARB holds rate steady, as 'KZN leads property market recovery'
Whether you are looking to enter the property market for the first time or downscaling, these suburbs across SA have something for you:
Gauteng
R1.5m can secure you a three or four bedroom property in certain Gauteng suburbs. From Alberton to Morningside, Brakpan and Roodepoort, here's where to look...
Alberton
Nadia Aucamp Broker Manager at RE/MAX All Stars operating in the Germiston & Alberton areas in Gauteng, says in the sectional title segment you can pretty much buy in any area in Johannesburg or Alberton, the options of a two- or a three-bedroom unit are certainly available.
In Alberton when it comes to full-title suburbs like Albertsdal, Mayberry Park, Verwoerdpark, Brackendowns and certain parts of Brackenhurst are good family option. Complexes with a higher number of units are able to offer lower levies and this is found to be a big deciding factor when determining where and what to buy.
"In Brackensdowns for R1.385 million, you can snap up a three-bedroom, two bathroom property on a stand size of 966sqm with a pool.
"In Albertsdal for R1.495million your options increase to a four-bedroom, three-bathroom property with a stand size of 1 028sqm.
Morningside
Morningside is a sought-after area mainly because it offers a range of properties from entry-level apartments in secure complexes with standard facilities like swimming pools and clubhouses.
Most buyers in the sub-R1.5 million price range have been predominantly renting and now are taking advantage of the lower interest rates being offered.
"This buyer population has not paid levies and rates/taxes before and are hard-pressed to keep their monthly spend close to what they’ve historically paid as tenants. They tend to be put off complexes where levies are higher than R2 000," says David Naidoo, Pam Golding Properties Morningside sectional title property specialist.
A 55 sqm, one-bedroom apartment with one bathroom and covered parking in these complexes start from around R700 000. A two-bedroom apartment with one bathroom around 60sqm sells for around R850 000 but these complexes also offer the basic facilities. While fair sized two-bedroom, two-bathroom apartments sell for around R1 million.
According to Naidoo one can find a three-bedroom apartment of around 120sqm for up to around R1.5 million in the older apartments but the more modern high rise apartment blocks sit in the over R2.5 million price range. The Gautrain bus route which runs along Rivonia road from 12th Ave down through to Sandton Gautrain station also has a factor influencing buyer decisions. Schools are a prerequisite for buyers with school-going children. Grayston Preparatory School, Lycee Jules Verne French International School, Redhill School and Crawford schools are offered in the area.
Brakpan
"For R1.5 million in Brenthurst or Dalview you can get a three or four bedroom well-maintained home with two bathrooms, garages and often a pool - and this may not be very modern but it will be a huge home," says Shennaz Haffejee, Pam Golding Properties area principal in Brakpan.
"In some parts of Dalpark which is boomed off we have three-bedroom homes with two bathrooms for around R1.5 million - some of these are a little modern since it’s a newer area with younger people living here. Most of the areas have schools close by, Dalpark and Dalview are close to a huge shopping centre called Carnival Mall and the Carnival Casino and Hotel, also very close is the N17 highway towards Springs and Johannesburg."
Roodepoort
In Florida, Discovery, Witpoortjie and Horizon on can still buy freestanding homes below R1.5 million starting at R1.25 million. These are usually three-bedroom homes on large stands with big gardens and trees. Some of these homes still have beautiful pressed ceiling and parquet flooring. While they sometimes need renovation they provide solid investment opportunities for young families who don’t want to be in townhouses or apartments. Often the streets have large trees on the verges. There are still really good schools in these areas, says Peter Ash, Pam Golding Properties area principal in Roodepoort.
Wilgeheuwel has a range of townhouse opportunities starting at R650 000 up to R1.5 million that vary in size. Close to Curro and Trinity Little Falls it provides the ideal opportunity for a more modern living lifestyle. Some of these units have small gardens so maintenance is easy. Proximity to Hendrik Potgieter Drive allows owners an easy commute to Krugersdorp or the Highway. The beautiful Clearwater Shopping Centre has a fantastic array of shops and dining options.
"In these uncertain times we are in with Covid-19 and an uncertain economy caution should be practiced when buying your family home. Buying to a person’s maximum financial limit is probably not a good idea as certainly interest rates will rise again. These suburbs give potential buyers the option of good quality homes at reasonable prices. Property is still a good investment in South Africa. It affords families stability and I believe it is still a better option than renting. One advantage is that when interest rates go down so does your repayments where the rental payments will increase on average every year," says Aucamp.
Western Cape
When considering where to purchase, the Western Cape has a wide array of options. Here's what's R1.5m and under gets you in Woodstock, Milnerton and Northern Suburbs...
Northern Suburbs
For those willing to venture further, the Northern Suburbs provide a variety of excellent schools and there are many major shopping centres close by.
“Though slightly removed from the city, it is easy to jump onto the highway to head in any direction. These suburbs are a mere 20-minute drive to the beach and the City of Cape Town (during off-peak traffic hours) and are also close to the airport. Many commercial nodes, offices and companies have made the Northern Suburbs the home of their operations, which is attracting more working professionals. Although these are mainly family areas, these suburbs also suit retirees,” says Caron Leslie, Broker/Owner of RE/MAX Property Associates.
She explains that in Protea Heights, property prices start at around R1.2 million to R1.5 million. Within this price bracket, buyers can find two-bedroom apartments and townhouses with a floor size of around 75sqm. In Durbanville, buyers can find two- or even three-bedroom homes with a floor size totalling around 65sqm within the same price bracket.
In Brackenfell buyers will mostly find apartments with a few freestanding properties. With prices ranging from R 1.2 million to R 1.3 million in this area, buyers can find two- to three-bedroom homes with a floor size from 60sqm to 100sqm.
Woodstock
For those hoping to move slightly closer to the CBD, Woodstock offers some good investment opportunities for those on a limited budget. “If you had a budget of R1.5 million, we would introduce you to trendy Woodstock. This up-and-coming suburb has beautiful residential properties, some of the top restaurants and cafes, the Old Biscuit Mill, and an amazing mixture of people. It’s a short distance from the famous Groote Schuur Hospital and medical university, as well as UCT. Only 10-minutes from town and easy access to all major roads, and the airport is just a mere 15-minute drive away,” explains John and Veronica Rafferty of RE/MAX Living.
The pair currently has a one-bedroom, one-bathroom listing on the market for R1.295 million. The property is 53 square metres with a small balcony, one undercover parking bay, 24-hour security access to a pool and braai area, plus a gym. Rates are R650 per month and levies are R1 450, making it the perfect starter apartment for young professionals.
Milnerton
Milnerton also offers affordable options to buyers who want to be closer to the CBD. Carol Whitehead of RE/MAX Living explains that a Studio Apartment with views overlooking the sea, lagoon, and Table Mountain will cost under R1.5 million.
“While these long-established buildings don’t offer the same amenities of new developments such as indoor gyms, or laundromats, their excellent location makes them highly sought-after,” she says.
KwaZulu-Natal
Ballito, North Coast and Queensburgh in KwaZulu-Natal offer buyers spacious homes, a more balanced and relaxed lifestyle, with new apartments selling from R550k and homes from R850k.
Always a popular holiday destination, the North Coast of KwaZulu-Natal has now become an area of choice for various types of property investors, with a long-term track record of outperforming national growth statistics.
"On the KZN North Coast, The Onyx in the Gateway area has arguably been one of the fastest selling developments in the past few years with more than 50% selling after launching during lockdown, with one and two-bedroom units starting at just under R1.2 million," adds Golding.
According to Vernon Vogt, Principal of Jawitz Properties North Coast, the current economic situation combined with the fact that operating businesses virtually has become the norm are contributing factors to more and more families moving to KwaZulu-Natal’s North Coast.
“The KZN North Coast has seen as much as 60% of buyers for new off-plan developments originating from Johannesburg and we have seen a spike in enquiries from Gauteng residents wanting to relocate to the North Coast, specifically to the greater Ballito area, now that they work remotely.
“There has also been a shift in interest from buyers looking for holiday homes. Earlier this year, the holiday home and investment markets were quite depressed but we are seeing a resurgence,” says Vogt.
Ballito
Ballito has become a primary residential destination attracting buyers from around KZN and young families relocating from Johannesburg. Secure gated environments with great communal facilities are especially popular, and a new development by ARCIS Property Development has just launched in the heart of Ballito.
“Ballito Village is ideally located to deliver the coastal village lifestyle, with unmatched access to Umhlanga CBD and King Shaka Airport and, by extension, the rest of South Africa," says ARCIS Property Development Sales Manager Andrea Santoriello.
It offers 1-, 2- and 3-bedroom apartments with top-notch finishes in a beautiful and secure lifestyle estate with all the expected amenities and more, accessibly-priced from R949 000.
“These apartments offer superb investment potential, and our first phase of 60 apartments in Ballito Village, launched on 1 October, is almost sold out. Phase 2 with another 60 apartments is now selling fast. This development represents an excellent lifestyle and investment opportunity – which is reflected in the pace of sales. The development will eventually take access off the same turning circle as the prestigious Zimbali Estate, giving you one of the best addresses in the country.”
Queensburgh
Michelle Vermeulen, licensee for Seeff Queensburgh who says, “We have seen a lot of first-time buyers as well as young families upsizing in the last 3 months. This is due to the current low-interest rates which have made purchasing a home more affordable for most. We also seeing a lot of rental clients, now opting to purchase a property instead of renting. This has had an impact on the rental market. Unfortunately, Covid Lockdown did affect credit profiles and this is noticeable in the rental applications being processed.”
Houses priced between R1 million and R1.5 million are very popular as they tend to offer three-beds, two-bath, a garage and possibly even a granny flat.
In Bellair, two-bed flats/simplexes between R550 000 to R650 000 and homes for R850 000 or under are also in high demand. This suburb provides easy access to schools, shops as well as CBD. New developments offering properties between R1.15 million and R1.6 million are also in high demand, but there is a shortage of these in Queensburgh.
“Buyers will always want the most for their money and sometimes have very unrealistic expectations. But our professional agents work with the buyers to assist and guide them, taking into account their personal requirements, needs and wants. The same applies with tenants. Sellers are generally in line with the market and allowing us to list and market at realistic prices,” explains Vermeulen.
“This does not mean sellers are desperate, it allows them to list and sell their properties within a reasonable period and obtain the best possible price for their property. Although Covid has put a ‘damper’ on things, both buyers and sellers have been very compliant and accommodating with the various accessibility restrictions in place.”
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