Latest news with #R1.21m
The Citizen
4 days ago
- Business
- The Citizen
Look north for affordable Cape Town property under R1m
While much is made of the high property prices in Cape Town, there are in fact still many areas where you can purchase below R1m. Properties below R1.21m are also exempt from transfer duty, thus providing a considerable saving, especially for first home buyers, according to the Seeff Property Group. The northern suburbs of Cape Town is a great area to look for affordability, says Susan McCarthy, manager for Seeff Brackenfell. These neighbourhoods offer good access to transport networks, schools, and general amenities. This combines with the affordability factor, making it easier for first time buyers to get onto the property ladder, securing their own home, and building wealth. If at a later stage they need to move on to a bigger property, it always leaves the option to retain the property as an investment, given the high demand for rentals, or they could sell it at a profit to use as a deposit for their next property purchase. She says neighbourhoods such as Kraaifontein and Kuils River are a good choice for good value as you can find sectional title property in the R700,000 to R1.2m price range. In Eerste River for example, the new Chardonnay Court offers two bedroomed units with modern finishes, a solar geyser, private outdoor braai area, and a parking bay for just R949,900. It is also a neighbourhood with good amenities and access to major routes with transport such as buses, taxis, and a train station on hand. There are schools, shopping centres, medical care, places of worship, a police station, sport grounds and more. The area is popular with first-time buyers. Lightstone data shows that 37% of recent buyers are under 35-years, and a further 44% between 36-49 years. Property values increased by around 70% over the last ten years, with a significant growth spurt during the high-demand Covid boom period, thus making these a good investment. She says they are also great for rental investments. Overall, first home buyers make up a considerable portion of total home sales across the country. According to mortgage originator, ooba, there has been a slight uptick in first-time buying in the first quarter, accounting for some 46.5% of home loan applications. The survey also shows that favourable mortgage lending conditions continue to support first-time buyers, and most banks still offer full bonds to qualifying buyers, depending on the property. Young buyers are not only purchasing for their own use, but there is a growing appetite to invest in property for the rental market. Ooba for example also reported a significant rise in investment property applications from younger buyers, rising from around 3% in 2019 to 9% last year. Issued by Gina Meintjes
The Citizen
12-05-2025
- Business
- The Citizen
Increasing web searches for homes in Bryanston and Sandton
With the world at their fingertips, most buyers embarking on a search to find the home of their dreams, and within their budget, begin their journey by scouring the internet, viewing properties for sale. Says Dr Andrew Golding, chief executive of the Pam Golding Property group: 'A recent assessment of web searches on our website reveals some notable trends regarding locations attracting high interest. 'While Cape Town retains top spot for searches on the Pam Golding Properties website, Gauteng locations such as Bryanston and also Sandton overall account for an increasing number of web searches. 'In fact, for the six-month period August 2024 to January 2025, seven of the top 20 searches were for suburbs in Gauteng, with Bryanston and Sandton (as a whole) in second and third place behind Cape Town. Notably, Gauteng locations accounted for nearly a third of all the top 20 searches during this period.' Adds Dr Golding: 'This is compared with the first quarter of 2024, when Gauteng accounted for only five of the top 20 searches on our website, with Bryanston in fifth place and Sandton seventh.' Says Nelson Ferreira, regional head in Gauteng for Pam Golding Properties: 'Sandton's reputation as a premier business and luxury hub plays a significant role in the uptick in enquiries, particularly in the luxury market from R15m plus, where viewing interest has increased. This is not only among South African buyers and returning expats, but also international purchasers predominantly from African countries, and from Europe. There has also been a notable increase in offers submitted on properties priced around R11m to R15m. 'Due to its vibrant lifestyle, lucrative business opportunities and upscale living environment, this area has always appealed to international property buyers for various reasons. This includes those relocating permanently or with three-to-five-year contracts in the area, while other global investors are purchasing apartments to rent out and build a property portfolio in Southern Africa.' Meanwhile, says Ferreira, for savvy investors and local first-time buyers, the recently adjusted R1.21m threshold for transfer duty has significantly improved the time taken to sell properties pegged below this price point. A leafy green suburb within Sandton, Bryanston remains a sought-after address because of its central locality, top government and private schools, and close proximity to Sandton CBD just 8km away. It is also only some 17km to Midrand, and for commuters to Tshwane, offers easy access to the highway. Bryanston is dissected by Winnie Mandela Drive, one of Johannesburg's busiest arterial roads, which effectively separates east from west Bryanston. Says Ferreira: 'The suburb caters for every kind of buyer, from those entering the market to couples, families upscaling and high net worth purchasers seeking luxury living, as well as those relocating back to Johannesburg as a result of a return-to-office trend. 'Bryanston offers a wide range of residential properties, including full title homes priced between R3m and R40m, estates with residences in the price band between R3.5m and R30m, and sectional title townhouses ranging from R900 000 to R8m.' There are several distinct property segments in Bryanston – each in high demand, albeit currently with an oversupply. Development market Comments Ferreira: 'Reflecting the ongoing demand and desirability of the area, developers are actively acquiring freehold properties from 1 900sqm to 4 200sqm, resulting in a wide range of both estate-style clusters and sectional title developments being built. Developers are especially interested in stands that have been rezoned as they offer strong prospects for redevelopment, renovation and resale. Currently, the going rate for rezoned land – whether vacant or with an existing home – is approximately R1 000 per square metre. 'In addition, some individual purchasers are looking to acquire properties where there is potential to subdivide and sell a part of the land, as well as combining households, with a cottage or flatlet sought after for multi-generational living. As a result, many homeowners who are unable to realise the full value of their properties are opting to subdivide. A single stand can potentially be split into five stands, allowing for the construction of five modern cluster homes. Subdivision is driven either by existing homeowners unlocking value or developers aiming to build multiple homes or high-density apartments for resale.' Full title homes Typically set on large stands from approximately 1 900-4 300sqm, making them highly attractive to developers, full title homes are available in both Bryanston East and Bryanston West – with the East more developed with newer builds, while the West comprises mainly older or more existing, mature homes,' says Ferreira. 'In Bryanston West, entry-level pricing for full title homes starts at approximately R3m, which generally comprises a four-bedroom, 3.5-bathroom house. Homes in this area range up to R15m, offering substantial opportunity for renovation. In the East, full title prices begin at around R5m and extend up to R40m, with a similar range of stand sizes creating significant potential for investors, particularly developers. Sectional Title units 'The sectional title segment of the market is extremely attractive to first-time buyers because of its affordability, security features, and the opportunity to live in one of Sandton's most sought-after suburbs. What makes this sector particularly competitive is that sellers of existing units must compete with these brand-new, sectional title developments with studios starting at around R900 000, two-bedroom apartments ranging from R1.2m to R1.7m, and three-bedroom apartments or townhouses priced between R3.3m and R4.7m.' Ferreira says buyer preferences in Bryanston East vary – some are seeking freehold properties of 2 000sqm or more, with a minimum of four bedrooms and within gated communities, while others typically prioritising a spacious yet secure lock-up-and-go lifestyle are looking for secure cluster homes on approximately 1 000sqm of land, with 400-600sqm under roof. Cluster and Gated Estates 'Another standout segment is the cluster and gated estate market, where buyers can enter from around R3m, while premium properties can exceed R20m. These estates offer excellent security, lower levies – especially compared to various sectional title units, and larger stand sizes ranging from 400-1 200sqm. Homes in this market segment tend to sell quickly due to strong demand and the appeal of estate living.' With excellent amenities, including top-tier shopping centres, green parks and the exclusive, limited-membership Bryanston Country Club, Bryanston is home to some of Sandton's most prestigious schools including Bryneven Primary, Bryanston High School, Brescia House, The British International Collega, St Stithians College, Michael Mount School and Brynandale Primary as well as close proximity to Redhill. Issued by: Gaye de Villiers on behalf of Pam Golding Properties
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
The Citizen
21-04-2025
- Business
- The Citizen
Practical financial tips to fast-track the journey to homeownership
The recent Budget Speech underscored the ongoing challenges facing the country, many of which will impact consumers. However, Gavin Lomberg, CEO of ooba Home Loans, emphasises that a favourable interest rate environment helps ease financial pressure, making homeownership more accessible for aspiring buyers. Adding to this, Lomberg notes that while saving for a deposit is always the obvious answer, there are various other avenues that homebuyers can leverage to generate further savings in the long-term. 'If planned carefully and correctly, the journey to homeownership can be a rewarding one,' he says. 'By taking calculated steps under the guidance of trusted professionals, would-be homeowners can save tens of thousands on their home loan, making homeownership an affordable and attainable goal.' Pointing to the prevailing trend of building generational wealth, Lomberg adds, 'Homeownership goes beyond simply owning 'four walls' and a place to live. Today, aspiring homebuyers are leveraging property ownership as a wealth creation strategy for their families and future generations.' Five Extra Ways to Save Purchase properties under the new transfer duty limit Effective 1 April 2025, and subject to approval by Parliament of SA's 2025 Budget, the threshold for exemption from paying transfer duty has been raised by 10% from R1.1m to R1.21m, with all subsequent tiers raised by 10%. 'This adjustment is particularly beneficial for first-time homebuyers where the average purchase price currently sits at just slightly over the R1.21m mark,' says Lomberg, adding that it reduces the upfront costs associated with buying a home and will enable more South Africans to realise their dream of homeownership. Transfer duties are taxes paid to SARS, starting at 3% of the purchase price, depending on the price bracket. However, Lomberg emphasises that buyers are still responsible for conveyancing fees, bond registration fees and Deeds Office fees. Use a home loan comparison service to secure a better interest rate 'Rather than simply approaching your bank for a home loan, it's strongly advised to shop around for comparative quotes,' says Lomberg. 'A home loan comparison service like ooba Home Loans will negotiate with multiple banks on your behalf, ensuring that they compete for your business. In a competitive lending environment, this can translate into significant monthly savings.' As an example, Lomberg notes that ooba Home Loans' average interest rate for customers is currently prime minus 0.55%. 'If you were to accept a home loan of R 1m at the current prime lending rate of 11%, you would pay R10,332 per month, versus R9,950 with an interest rate of prime minus 0.55%. Additionally, homebuyers can choose to pay the higher amount each month to pay off their home loan sooner.' Access the First Home Finance government grant The First Home Finance grant is a subsidy for first-time homebuyers earning between R3,500 and R22,000 per month. 'This government subsidy can either be paid towards a home loan or can be allocated towards a deposit,' explains Lomberg. To qualify, applicants must be: South African citizens living in South Africa. Not have received this housing subsidy before. Be married, cohabiting, or single with financial dependents. Be over the age of 18. Not have previously owned a residential property. The subsidy amount ranges between R30,001 and R130,505, depending on income and affordability. Take advantage of attractive bank discounts and incentives In a competitive lending environment, South Africa's major banks continue to attract buyers with special offers, competitive interest rates and other discounts. 'Each bank's offering differs, but homebuyers can benefit from incentives such as discounts on bond registration costs and an additional discount in their home loan interest rate when moving their primary banking account to the approving bank,' says Lomberg. Buy-to-let as a path to property investment For those looking to enter the property market, a buy-to-let strategy can be an effective way to start building generational wealth. 'Rather than living in their newly purchased home, the homebuyer rents it out while continuing to rent elsewhere or live with family or friends.' Known as 'rentvesting', this strategy allows buyers to generate rental income to help cover their home loan and related costs. 'Over time, homeowners may choose to expand their property portfolio or move into the home once they have greater financial flexibility.' By leveraging these financial strategies, whether through lower interest rates, government subsidies or strategic investment choices, homebuyers can make the path to homeownership more affordable and achievable. 'With careful planning and the right financial tools, securing a home in 2025 may well be more attainable than you first thought.' Issued by: Kristly Bartlett
