The FNB report recently revealed Reasons for selling property in SA and 14 percent of sellers in the fourth quarter of 2013 were selling due to financial pressure.
A four bedroom home in Lovemore Heights in Port Elizabeth is selling for R3.395 million. Click here to view.
Estate agents surveyed in the report noted that some of those sellers either bought cheaper properties or opted to rent instead.
According to Jaco Rademeyer, principal and owner of Jaco Rademeyer Estates, in his area of operation in Port Elizabeth, most people are looking to upgrade their lifestyles or downscale.
He notes a number of homeowners under financial pressure who sell their homes and rent afterwards.
Asked what the value of homes they own are, he says most of them own homes priced in the region of R3 million and above.
“They “downscale” on price or go and rent and try to settle debt with the profit they make out of their property.”
Rademeyer says also of note is that holiday homes, because they are more of a lifestyle investment, are usually the first properties that people put on the market as these types of properties for many are underutilised and not income generating.
Located in Framesby in Port Elizabeth, this three bedroom house is priced at R1.195 million. Click here to view.
However, he is upbeat about 2014 pointing to increased residential activity in their area with more buyers qualifying for home loans and actually buying property.
What’s more, he says they are seeing a slight increase in property prices as well activity in the development of new homes – after three years of non activity in this sector.
So while others are selling because of financial pressure, he says the current low interest rate environment is ideal to buy property provided one can afford that property and has the money or can get home loan finance.
Also, he advises would-be buyers to invest in an area that offers good amenities such as schools (for those with children) and shopping centres.
Rademeyer points out that those buying currently tend to prefer estate living or freehold properties in a secure environment – security is undoubtedly essential in decision-making for many buyers.
On popular price bracket, he says in Port Elizabeth, middle income bracket properties priced around R1.5 million are snapped up as soon as they are listed. – Denise Mhlanga
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