What buyers in the affordable property market should look for

Private Property South Africa
Press

Many South Africans take their first steps on the property ladder in the affordable property market. These first-time buyers should follow this advice for investing this market.

Multi Spectrum Property’s Director of Sales and Marketing, David Britz, has advice on investing in the affordable property market: “Those looking to buy their first property and to get onto the property ladder in the affordable market cannot go wrong by buying from a company with a good name and strong track record.

“There are many millions of people in South Africa that still need to take their first step into property, and most will be looking at the affordable market priced between R350 000 and R650 000. We know that savvy young professionals are the driving force behind the affordable housing market, with family buyers also playing a role. Our advice is that there is never a wrong time to invest in property if you buy from an accredited source. The affordable market offers you the opportunity to get into the property market and start growing the value of your investment.

“Make sure that the development company is registered with the National Home Builders Registration Council (NHBRC) and has actual showhouses that you can go and see to assess the quality of the workmanship and finishes. Make sure you are getting good value and good quality. Don’t buy cheaper from a questionable source – you are sure to have lots of problems down the line. The bottom line is – do your homework!

“MSP has many affordable developments on offer, mainly in Gauteng. For example, in Pretoria we have Kirkney Village, Orchards and Glenway Estate. Located only 10km from Pretoria's CBD, Kirkney Village and Kirkney Estate is becoming a very popular suburb in Pretoria West and is ideal for individuals that work in Pretoria CBD, Pretoria North, and even Soshanguve or Hartbeespoort Dam. Kirkney is growing rapidly with new extensions launching soon, as well as a private school that just opened this year. Freestanding individually walled homes with two bedrooms, one bathroom and a carport are available in Kirkney Estate from R689 900. Another option if you need time to get your finances in order is to rent a home in the estate for a year or two at R5500 per month and buy there later.

Orchards is situated in Pretoria North and offers freestanding homes with individually walled gardens from only R679 900. “Glenway Estate is on the North Eastern side of Pretoria in Mamelodi. This quiet, suburban environment is the ideal neighbourhood for couples, families, and single people, with homes priced from R519 900.

What you need to apply

“In all cases, to apply you will need 3 months’ proof of income, a clear copy of your ID and a completed Expression of Interest in order for the sales team to assess your affordability and submit your deal to the bank for a home loan. The prices given include VAT, transfer fees and bond registration fees.

“Property prices increase every year, which means that the sooner you buy, the sooner you can benefit from growth in the value of your investment. Our figures for Orchards, Kirkney Village and Glenway Estate show that a home bought in Orchards in 2014 for R395 000 is now worth R679 900 – an incredible growth of 72.13%.

“A home bought in Kirkney Village in 2014 for R495 000 is now worth R619 900, which is 25.23% growth. In Glenway Estate a home bought for R476 000 just 2 years ago when this development started is now worth R579 900 – growth of 21.80%. The table below gives all of the details.

“Do your homework and then invest in the housing market as soon as possible. If you are spending your hard-earned money paying rent, you are paying someone else’s bond.

“With buyer demand and investment potential in the affordable housing market expected to continue growing over the next few years, homes in this sector are certain to continue to offer investors impressive yields.”

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