Buying a home takes more consideration that just whether you can afford the bond repayments; the area you are purchasing in should also give you good growth potential on your investment.
Plus, it needs to offer easy access to work, schools, and other amenities that you require.
For young buyers in particular, high interest rates are making it trickier to enter the property market, resulting in many aspiring property owners delaying their first purchase.
Read our latest Property360 digital magazine below
This is often because they may not qualify for finance for homes in the areas they want to live, or for the types of homes they want to live in. But rather than wait until interest rates are substantially lowered, Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa, says they should try to find an affordable starter home to use as a stepping stone to their forever home.
Sectional title properties usually offer this platform. A recent report released by Lightstone states that under-35s are opting for the lifestyle benefits offered by sectional title properties. However, the average age of the first-time buyer is higher than it was 10 years ago.
Those who want to beat the statistics and purchase their first home before the age of 35 will need to know where to look to find affordable options. According to the same report, the majority (44%) of buyers under 35 are purchasing within the R500,000 to R1 million band.
Suburbs that offer opportunities for young buyers
Kabega Park, Gqeberha
Belinda Rossouw of RE/MAX Independent Properties says 43,6% of buyers in this area are aged 18 to 35, and that sectional title homes are the most popular properties, largely due to their affordable prices.
The average price of a sectional title property in the area is about R877,500 while freestanding houses cost approximately R1,179m.
Parklands, Western Cape
This suburb is one of the top five searched areas on the RE/MAX property portal. Parklands North, in particular, is attracting many young buyers, also due to its affordable prices. Lightstone figures show that the average price of sectional titles in Parklands North is about R1m, and 48% of recent buyers in the area are aged between 18 and 35.
Germiston, Gauteng
This is another popular option for young buyers, and 75% of recent buyers in Germiston are aged 18 to 35. Here, young buyers who spend just a little bit more than the average could even afford to buy a freestanding home, says Nadia Aucamp of RE/MAX All Stars. As an example, houses can be purchased for R1,5m in Albemarle or Dinwiddie.
Ekurhuleni, Gauteng
This area is generally a growing hotspot for buyers because it offers more affordable properties and even some “hidden gems” that people can afford, states Ivan Jansen of RE/MAX One.
“First-time home buyers are finding good buys and starter homes in Ekurhuleni.”
Popular suburbs for all buyers
For buyers of all ages, these areas also offer some affordable, yet investment-worthy homes:
Green Point, Cape Town
Many people are choosing to invest in Green Point as it offers wonderful sea views and is close enough to walk to an array of shops, restaurants, the Sea Point Promenade, and world-class lifestyle attractions, says Alexa Horne, managing director of Dogon Group Properties.
The suburb’s location has made it highly desirable for buyers who don’t want the hassle of fighting rush hour traffic and want the convenience of city living right at their doorstep.
“We have seen robust demand for property in this suburb which has limited residential space available – as does most of Cape Town’s CBD. This has given rise to high levels of interest in property within the area.”
Alison Robb, sales agent and Green Point area specialist for Dogon Properties says activity is brisk among buyers in the price range from R1.2 million to R2.5 million.
“And if lucky, one can snatch up a 3-bedroom apartment in the region of R2.95m.”
Pretoria, Gauteng
Pretoria is arguably still the best-priced metro in the country for property buyers, and you can find exceptional value in the market right now, according to Seeff’s Pretoria branches.
It is a vibrant city that is still growing in terms of urbanisation. Furthermore, a recent study by NetCredit pointed to Pretoria as the capital city with the most affordable property. Lightstone data shows that the bulk of sales transactions across the metro fall within the R800,000 to R2 million price range.
While the central, west and northern areas in Pretoria are the most affordable, Tiaan Pretorius, manager for Seeff Centurion, says there are many affordable areas in the Centurion area as well. The largest movement is usually in the below-R2m price band.
“The area is home to a number of areas popular with first-time buyers. You can, for example, find a two-bedroomed apartment with a small garden for R800,000 in suburbs such as Doringkloof, The Reed, and Highveld.”
IOL Business