Latest news with #BetterBond
Zawya
6 days ago
- Business
- Zawya
South African Property in 2025: What Q1 reveals about the road ahead?
The South African property market began 2025 on a cautiously optimistic note. With inflation easing, interest rates holding steady with potential modest declines, and policy shifts making entry more affordable, the first quarter brought fresh energy into a market that showed resilience but little momentum in 2024. Drawing from Lightstone, BetterBond, and FNB data, Paul Stevens, CEO of Just Property, examines where the sector stands today and what we can expect from the rest of the year. A look back: the slow grind of 2024 Last year, the market was shaped by economic pressure and buyer hesitancy. The FNB House Price Index recorded just 0.3% year-on-year growth in October, down from 0.5% in September. Gauteng, the country's largest housing market, saw prices decline by 2.6%. Coastal areas in the Western Cape bucked the trend, buoyed by lingering semi-gration demand. Mortgage volumes began to pick up in Q4, with BetterBond noting a 6.6% year-on-year increase in applications and an 8.1% rise in home loans granted. Rental markets outperformed expectations. National average rent grew by 4.8% year on year in Q3 2024, with the Western Cape leading at 9.3%. Tenant affordability improved, arrears dropped to near-record lows, and average rent remained below 30% of household income. A fresh start: Q1 2025 insights Lightstone's Q1 2025 transfer data offers the clearest picture yet of post-pandemic market normalisation. The High Value segment (R700 000 – R1.5 million) accounted for the largest share of activity: 33.8% of volume and value. The Mid Value segment (R250 000 – R700 000) followed closely at 32.9% by volume, although its share of value was lower at 18.3%, reflecting affordability constraints. First-time buyers remained active in these bands, with 16.9% buying into the High Value category and 16.4% into the Mid Value range. Notably, average spend among first-time buyers was R1.2 million in the High Value band and R557 000 in the Mid Value band, showing a strong middle-market entry trend. A small portion also bought into the Luxury segment (R1.5 million – R3 million), with an average spend of R2.2 million. Regulatory shifts are supporting this momentum. From 1 April 2025, properties priced under R1.21 million were exempt from Transfer Duty Tax. This change, announced in the February Budget Speech, eases upfront costs for many buyers. Transfer Duty, effective from 1 April 2025 (Source: Sars) While the repo rate remained unchanged at 11% in the 20 March monetary policy announcement, the Deeds Office implemented a revised fee structure from 1 April, which includes a new lodgement fee (R50 per deed or document) and the requirement that all fees are now to be paid in advance. Looking ahead: opportunity in the details If inflation continues to slow, rate cuts may resume, enhancing affordability and spurring further buyer activity. Recent announcements from the United States regarding increased tariffs on a range of imported goods could have indirect consequences for the South African property market. Should these tariffs lead to disruptions in global supply chains or increased costs for building materials – particularly those with components sourced internationally – developers may face tighter margins and delayed project timelines. Higher input costs could also place upward pressure on the pricing of new residential and commercial builds, especially in the mid to high-end segments. Investors and developers would do well to monitor this closely, particularly if their projects rely on imported finishes, equipment or construction technologies. Here are my key takeouts for buyers, investors and developers: For first-time buyers: Properties under R1.21 million are now exempt from transfer duty, making this an ideal entry point. Consider the High Value segment for long-term appreciation, but factor in total transaction costs, including new deeds office fees. For investors: The rental market continues to perform well, particularly in the Western Cape. High demand, limited supply, and improved affordability create strong conditions for yield. Consider locations with low arrears and rising rent-to-income ratios. For developers: Keep an eye on supply chains for internationally sourced materials and fittings. Should costs increase, developers should see this as an opportunity to source new suppliers or revisit pricing structures. For commercial buyers: Industrial remains the most promising sector. Focus on logistics and light manufacturing hubs. Office property, while oversupplied, may offer long-term potential in niche or repositioned formats. For all buyers: Monitor inflation, interest rate decisions and potential policy shifts in the second half of 2025. These will shape affordability and investment timing. With Q1 providing a solid start and policy adjustments enhancing affordability, 2025 may be the year the South African property market transitions from recovery to renewed growth. Copyright © 2022 - All materials can be used freely, indicating the origin Provided by SyndiGate Media Inc. (
IOL News
26-05-2025
- Business
- IOL News
Interest rates in flux: property expert discusses potential outcomes amid uncertainty
All eyes will be on the South African Reserve Bank's (SARB) Monetary Policy Committee's decision on where it leaves the interest rates this week. Image: Bongani Shilubane/ Independent Newspapers. The outcome of Thursday's Monetary Policy Committee meeting could go either way in these uncertain times. Bradd Bendall, National Head of Sales at BetterBond, said while recent global and local economic indicators might suggest that there is room for a much-needed rate cut, the South African Reserve Bank's decision remains difficult to call. 'However, we are optimistic that the Reserve Bank will take a bold stance to lower the prime lending rate by at least 25 bps. It seems like the right time to adopt a more accommodating approach. "Inflation has been trending downwards since last year, and the US's pause on tariff measures has returned some stability to global markets. We have seen the Bank of England and the European Central Bank drop their respective repo rates by 25 bps, and we expect South Africa to follow suit,' Bendall said. He said that if the rate does drop, it will only be the second cut this year. The shift will certainly bring welcome relief to homeowners and consumers grappling with higher living expenses and fuel tax hikes, he added. BetterBond said its home loan applications have increased by 2.2% year on year, according to their May data, signalling a recovery in home buying activity after a period of stagnation. It said any further rate cuts will go a long way to boosting the housing market. 'At a time when the world is holding its breath amid global monetary policy shifts, a drop in the prime lending rate would send a strong signal that South Africa prioritises economic growth and market stability.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ On Monday morning, Reezwana Sumad, research analyst at Nedbank CIB, said the final session of last week saw the USDZAR trading at R17.93 at the open. 'Overall, the local unit posted steady gains. After having had a brief foray towards the R18 00 level, it ended the session trading at R17.84. This morning, the USDZAR is currently trading at R17.81. "The major currency pairs also traded broadly firmer over the course of the previous session, with the EURUSD trading at 1,1410 this morning from the previous open at 1,1312 and the GBPUSD at 1,3580. "Possible trading range for the USDZAR today is R17.65 to R17.95. The markets are likely to trade cautiously today, and liquidity is at a premium, as both the London and New York markets are closed. The local unit continues to trade in positive territory, as the USD remains under pressure across the board,' Sumad said. At the beginning of this month, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, said he believes that the benefits of an interest rate cut at this time would outweigh the potential risks that the SARB is guarding against. Thus far, the ongoing global trade tensions and domestic economic challenges have led the SARB to adopt a cautious approach, favouring rate stability to navigate potential risks. 'Reducing the repo rate could boost consumer confidence, increase affordability, and encourage greater economic growth. Lower interest rates translate into reduced monthly repayments on home loans and other debts, putting more money back into consumers' pockets and stimulating broader economic activity. "This additional disposable income will positively impact other sectors reliant on consumer spending, driving economic growth across the board,' Goslett said. Moreover, Goslett added that an interest rate cut will send a strong positive signal to international and local investors, reinforcing confidence in South Africa's economic recovery trajectory, especially following the instability around VAT. Despite inflation being the lowest it has been since June 2020, economists widely anticipate that the SARB will keep the repo rate unchanged later this week. Independent Media Property
IOL News
13-05-2025
- Business
- IOL News
Unlocking additional income: how your home can help during tough times
A brand new event hall, nestled within the Phoenix Children's Centre, is now available for public rentals, offering an exceptional venue for a variety of occasions and gatherings. Image: Picture: Supplied Homeowners can unlock additional income through their homes while staying compliant with local zoning and insurance requirements, noted a property expert. Bradd Bendall, national head of sales at BetterBond, said the house one calls a home can be so much more than the place where they live. 'A home can also be a source of additional income, especially during challenging financial times." "It is possible to use your home to bring in some extra money that you can use towards your bond repayments or to contribute towards household expenses,' Bendall stated. He noted that if one has a spare room or space on their property, they can consider getting a tenant. He added that this works well if the room or space has its own entrance so that both parties enjoy some privacy and freedom of movement. Where the property has a small cottage or flatlet, this would be an ideal option. Student accommodation is always in demand, so those who have a room or flat on their property and live close to a tertiary institution could derive reliable income during the academic year. Bendall noted that unused spaces like a garage or driveway on the property can be offered to neighbours who may need additional parking or whose properties may not have space for their cars. "In Clifton, where parking is a luxury, it was not unusual for parking bays of 16 square metres to sell for R2.5 million, he said. "An empty garage can also be rented as a storage space," added Bendall. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ A recent study on the economic impact of Airbnb in Cape Town found that 49% of hosts surveyed saw their Airbnb income as an 'economic lifeline' that helped them afford their homes. Half revealed that the additional income helped them keep up with the rising cost of living. With the launch of Airbnb Rooms, it is now possible to offer just one room in the home for short-term rental, if it meets certain criteria. These include a private bedroom with a door, access to a private or shared bathroom, and access to at least one common space such as a garden or kitchen. "Those hosting guests in their home for income must let their insurance company know so that they can be properly covered in case of theft or damage," advised Bendall. This means instituting hospitality risk insurance that will allow for hosting-related claims. He said that a home with distinctive architectural features or is set in a sought-after location, could be rented as a venue for events, weddings or even film shoots. "Historical homes are also sought after for films or magazine shoots. Do your research and register your home with a reputable location agent,' said Bendall. 'Before opening your home to film crews, be clear about which parts of your home will be used and the duration of the shoot so that you can minimise disruption. Having your home as a location can be a lucrative source of additional income.' Bendall said many people have shifted to remote working, and most homes have space for a home office. "You just need good internet connectivity or Wi-Fi, decent lighting, and a dedicated space to create a home office." He said having a solar system is also a good idea because this minimises the risk of disruption from load shedding and also saves on energy costs. Bendall said working from home or running a small business does not require special permission from the municipality. There are also tax benefits associated with using part of that home for business purposes. "So-called 'micro businesses' do not need special permissions to operate in a residential zone, he explained. These include small bed-and-breakfast establishments, hair or beauty salons, crèches or daycares with a limited number of children, and medical practices. Where one would like to open an independent or cottage school accommodating six or more children on their property, they may need to change the zoning to allow the property to be used as a place of instruction. With a few modifications, one's home can be used for a variety of activities or services. Home-based yoga studios or fitness centres are popular with those who prefer smaller group activities. "If a homeowner has a well-sized heated or indoor pool, they could offer swimming lessons. Always be mindful of the applicable zoning and land-use regulations," suggested Bendall. While within general residential zonings there are controlled opportunities for home businesses, larger business operations may require a consent use or temporary departure from the municipality. 'When deciding whether to run a business from home, consult with your local district planning office about the necessary permissions and zoning regulations. You will need to take factors such as parking and possible traffic congestion in a residential area into account,' he said. In June 2023, the Human Sciences Research Council (HSRC) published an article titled 'Small-scale rental housing: an impact story', by then senior research specialist in the HSRC's Equitable Education and Economies (EEE) division, Dr Andreas Scheba, and Professor Ivan Turok, also a distinguished research fellow in the HSRC's EEE division. The research revealed that the growth of small-scale rental housing-especially in South Africa's larger cities-offers enormous opportunities, despite its informal and, in many cases, unauthorised character. 'Small-scale rental housing addresses some of the country's biggest development challenges through delivering affordable rental accommodation, stimulating local economic development and employment, and promoting social transformation," the research revealed. "Homeowners, many of whom once received a government-subsidised house, and entrepreneurial micro-developers are investing millions of rand in constructing higher-quality rental flats in their backyards, or across entire properties." "This is taking place without any direct government support. In fact, until recently, all spheres of government have largely neglected this phenomenon, thus inadvertently contributing to its largely informal, unauthorised nature and associated drawbacks," it revealed. Independent Media Property
The Citizen
09-05-2025
- Business
- The Citizen
Six ways young professionals can get ahead in the property market
You're never too young to invest in property, says Bradd Bendall, BetterBond's national head of sales. 'For young professionals with a stable income, age really is just a number when it comes to getting ahead in the property game.' Whether the plan is to invest in a rental property that will bring in additional income or to buy a starter home to secure a foothold in the property market, Bendall recommends six ways young buyers can confidently enter the property market. According to BetterBond's data for the 12 months ending January 2025, the average price of homes bought by buyers between the ages of 20 and 30 was R1.2m, up almost 6% on the previous year. This reflects Lightstone's findings that buyers under the age of 35 are paying more for their homes than in 2018. Seven years ago, only 29% of these buyers were spending between R1m and R3m on a property. Now, this has increased to 36% of young buyers. Buy with a friend or family member Even for young buyers with a good income, being able to share a bond with a friend or family member will help lighten the financial load, says Bendall. 'Paying half or a third of a bond can make investing in a property more accessible and appealing for a young professional.' However, he highlights the importance of setting up the appropriate agreements to ensure that everyone understands their financial responsibility. Each party on the bond agreement is responsible for the bond repayments, and if one person defaults, everyone is liable. 'With more than one income, joint buyers also have increased purchasing power,' adds Bendall. Keep below the threshold The transfer duty threshold increased by 10% to R1.21m from 1 April, meaning that buyers who apply for bonds of less than this amount will save on additional transfer duty costs, says Bendall. According to BetterBond's data for the 12 months ending January 2025, the average price of homes bought by buyers between the ages of 20 and 30 was R1.2m, up almost 6% on the previous year. 'With the new threshold, these buyers will save R3 300 in transfer duties if they buy for less than R1.21m.' Buy off-plan Another way for young buyers to secure property without having to factor in transfer duty costs is by buying off-plan in a new development. This means buying a property while it is still being developed. Not only does this save on upfront costs, but the new property will also increase in value when construction is complete, says Bendall. 'Many young professionals buy in new sectional title developments that offer lock-up-and-go convenience and minimal maintenance.' House hacking For those who want to spend a bit more on a larger property, it's possible to rent some rooms or parts of the home to generate a secondary or passive income to help cover the bond. Known as 'house hacking', this is a good way to generate an income from your home while you are living in it, explains Bendall. A property with a garden flat or a section of the home that has its own entrance would be a good option for a house hack. 'The objective is to generate rental income to cover as much of the bond as possible.' Once the bond is paid, you can move out and invest in a second property using the income generated by the first. Fix and flip Start your property mogul journey by buying a fixer-upper and selling it at a higher price to make a profit. Often, properties that need a bit of work sell at below asking price, says Bendall. 'But if you do your research and buy in an area where there is a demand for the type of property you have, once renovated it can be resold at a considerable profit.' This form of investment would most likely appeal to Gen-Z buyers (younger than 28) who want financial flexibility and short-term returns, says Bendall. Identify opportunities in areas sought after by families for schools, or in developments offering appealing lifestyle facilities that attract a particular segment of the market, he advises. 'Urbanisation is a significant factor driving homeownership currently,' says Bendall. 'Mixed-use developments, micro-apartments in city centres and sectional title properties close to transport or economic hubs are therefore evergreen investment options.' Work with the experts It is always advisable to work with a bond originator who will calculate how much you can afford, based on your unique financial circumstances. 'Young professionals can also use BetterBond's online calculators to work out what they can afford, how much they will spend on bond repayments and how much they need to save if they want to pay a deposit,' says Bendall. In some cases, banks may be open to lending above 100% of the property value, depending on the buyer's risk profile. This could help cover additional costs such as transfer duties or legal fees, making homeownership more accessible for young professionals. However, this type of financing is risk-based, so it's important to work with an expert to understand the implications. Bendall recommends applying for a bond pre-approval to get an idea of the recommended price range based on income and financial obligations. 'BetterBond doesn't charge for a pre-approval. In addition, it can be completed online and at any time, which is ideal for those who don't have the time to fill in multiple documents and submit them to various banks.' The pre-approval application will also speed up the bond application and increase the chances of bond approval. Since BetterBond applies to more than one bank, home loan consultants can negotiate a better rate concession based on the buyer's risk profile. 'The current approval rate for clients who pre-approved with BetterBond first is 95% of all applications submitted to the banks on their behalf,' says Bendall. 'This high approval rate motivates young buyers hoping to enter the property market as their professional careers gain momentum.' Issued by: Lia Mundell
